[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 82 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 82

  To amend the Internal Revenue Code of 1986 to expand the denial of 
 deduction for certain excessive employee remuneration, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 10, 2017

  Mr. Reed (for himself and Mr. Blumenthal) 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 expand the denial of 
 deduction for certain excessive employee remuneration, 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 ``Stop Subsidizing Multimillion Dollar 
Corporate Bonuses Act''.

SEC. 2. EXPANSION OF DENIAL OF DEDUCTION FOR CERTAIN EXCESSIVE EMPLOYEE 
              REMUNERATION.

    (a) Application to All Current and Former Employees.--
            (1) In general.--Section 162(m) of the Internal Revenue 
        Code of 1986 is amended--
                    (A) by striking ``covered employee'' each place it 
                appears in paragraphs (1) and (4) and inserting 
                ``covered individual'', and
                    (B) by striking ``such employee'' each place it 
                appears in subparagraphs (A) and (G) of paragraph (4) 
                and inserting ``such individual''.
            (2) Covered individual.--Paragraph (3) of section 162(m) of 
        such Code is amended to read as follows:
            ``(3) Covered individual.--For purposes of this subsection, 
        the term `covered individual' means any individual who is an 
        officer, director, or employee of the taxpayer or a former 
        officer, director, or employee of the taxpayer.''.
            (3) Conforming amendments.--
                    (A) Section 48D(b)(3)(A) of such Code is amended by 
                inserting ``(as in effect for taxable years beginning 
                before January 1, 2018)'' after ``section 162(m)(3)''.
                    (B) Section 409A(b)(3)(D)(ii) of such Code is 
                amended by inserting ``(as in effect for taxable years 
                beginning before January 1, 2018)'' after ``section 
                162(m)(3)''.
    (b) Expansion of Applicable Employee Remuneration.--
            (1) Elimination of exception for commission-based pay.--
                    (A) In general.--Paragraph (4) of section 162(m) of 
                such Code, as amended by subsection (a), is amended by 
                striking subparagraph (B) and by redesignating 
                subparagraphs (C) through (G) as subparagraphs (B) 
                through (F), respectively.
                    (B) Conforming amendments.--
                            (i) Section 162(m)(5) of such Code is 
                        amended--
                                    (I) by striking ``subparagraphs 
                                (B), (C), and (D) thereof'' in 
                                subparagraph (E) and inserting 
                                ``subparagraphs (B) and (C) thereof'', 
                                and
                                    (II) by striking ``subparagraphs 
                                (F) and (G)'' in subparagraph (G) and 
                                inserting ``subparagraphs (E) and 
                                (F)''.
                            (ii) Section 162(m)(6) of such Code is 
                        amended--
                                    (I) by striking ``subparagraphs 
                                (B), (C), and (D) thereof'' in 
                                subparagraph (D) and inserting 
                                ``subparagraphs (B) and (C) thereof'', 
                                and
                                    (II) by striking ``subparagraphs 
                                (F) and (G)'' in subparagraph (G) and 
                                inserting ``subparagraphs (E) and 
                                (F)''.
            (2) Inclusion of performance-based compensation.--
                    (A) In general.--Paragraph (4) of section 162(m) of 
                the Internal Revenue Code of 1986, as amended by 
                subsection (a) and paragraph (1) of this subsection, is 
                amended by striking subparagraph (B) and redesignating 
                subparagraphs (C) through (F) as subparagraphs (B) 
                through (E), respectively.
                    (B) Conforming amendments.--
                            (i) Section 162(m)(5) of such Code, as 
                        amended by paragraph (1), is amended--
                                    (I) by striking ``subparagraphs (B) 
                                and (C) thereof'' in subparagraph (E) 
                                and inserting ``subparagraph (B) 
                                thereof'', and
                                    (II) by striking ``subparagraphs 
                                (E) and (F)'' in subparagraph (G) and 
                                inserting ``subparagraphs (D) and 
                                (E)''.
                            (ii) Section 162(m)(6) of such Code, as 
                        amended by paragraph (1), is amended--
                                    (I) by striking ``subparagraphs (B) 
                                and (C) thereof'' in subparagraph (D) 
                                and inserting ``subparagraph (B) 
                                thereof'', and
                                    (II) by striking ``subparagraphs 
                                (E) and (F)'' in subparagraph (G) and 
                                inserting ``subparagraphs (D) and 
                                (E)''.
    (c) Expansion of Applicable Employer.--Paragraph (2) of section 
162(m) of the Internal Revenue Code of 1986 is amended to read as 
follows:
            ``(2) Publicly held corporation.--For purposes of this 
        subsection, the term `publicly held corporation' means any 
        corporation which is an issuer (as defined in section 3 of the 
        Securities Exchange Act of 1934 (15 U.S.C. 78c))--
                    ``(A) the securities of which are registered under 
                section 12 of such Act (15 U.S.C. 78l), or
                    ``(B) that is required to file reports under 
                section 15(d) of such Act (15 U.S.C. 780(d)).''.
    (d) Regulatory Authority.--
            (1) In general.--Section 162(m) of the Internal Revenue 
        Code of 1986 is amended by adding at the end the following new 
        paragraph:
            ``(7) Regulations.--The Secretary may prescribe such 
        guidance, rules, or regulations, including with respect to 
        reporting, as are necessary to carry out the purposes of this 
        subsection.''.
            (2) Conforming amendment.--Paragraph (6) of section 162(m) 
        of such Code is amended by striking subparagraph (H).
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2017.
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