S. 4796

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4796 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4796

To amend the Internal Revenue Code of 1986 to increase the rate of the 
excise tax on the repurchase of corporate stock, and for other 
purposes.

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IN THE SENATE OF THE UNITED STATES

June 16, 2026

Mr. Schumer (for himself, Mr. Wyden, Ms. Warren, Mr. Reed, Mr. Van 
Hollen, Mr. Markey, and Mr. Whitehouse) introduced the following bill; 
which was read twice and referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend the Internal Revenue Code of 1986 to increase the rate of the 
excise tax on the repurchase of corporate stock, and for other 
purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Stock Buyback Accountability Act of 
2026''.

SEC. 2. MODIFICATIONS TO TAX ON REPURCHASE OF CORPORATE STOCK.

(a) Increase in Rate of Tax.--Section 4501(a) of the Internal 
Revenue Code of 1986 is amended by striking ``1 percent'' and inserting 
``4 percent''.
(b) Modification of Adjustments.--Section 4501(c)(3) of the 
Internal Revenue Code of 1986 is amended--
(1) by striking ``The amount'' and inserting the following:
``(A) In general.--The amount'', and
(2) by adding at the end the following new subparagraph:
``(B) Exception for stock issued to certain 
persons.--Subparagraph (A) shall not apply to so much 
of the fair market value of any stock issued or 
provided to--
``(i) an employee who is a covered employee 
(within the meaning of section 162(m)(3)) or a 
specified covered employee (within the meaning 
of section 162(m)(7)(C)), or
``(ii) a person (other than an employee 
described in clause (i)) who receives 
remuneration (within the meaning of section 
162(m)(4)) during any taxable year of the 
covered corporation beginning after December 
31, 2025, in excess of $1,000,000 for services 
performed by such person for such covered 
corporation or any specified affiliate of such 
covered corporation.''.
(c) Effective Date.--
(1) Rate.--
(A) In general.--The amendment made by subsection 
(a) section shall apply to repurchases (within the 
meaning of section 4501(c) of the Internal Revenue Code 
of 1986) of stock after the date of the enactment of 
this Act.
(B) Special rule.--For purposes of applying section 
4501(c)(3) of the Internal Revenue Code to any taxable 
year which includes the date of the enactment of this 
Act, the amount of the reduction determined under such 
section for such taxable year shall be applied--
(i) by reducing stock repurchased on or 
before such date of enactment in the amount 
which bears the same ratio to the total amount 
of the reduction so determined for such taxable 
year as--
(I) the number of days in the 
taxable year on or before such date of 
enactment, bears to
(II) the total number of days in 
such taxable year, and
(ii) by reducing stock repurchased after 
such date of the enactment by the excess (if 
any) of the total amount of the reduction so 
determined for such taxable year over the 
amount of the reduction determined under clause 
(i).
(2) Adjustments.--The amendments made by subsection (b) 
shall apply to stock issued or provided in taxable years ending 
more than 90 days after the date of the enactment of this Act.
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