S.Amdt. 1708

SA 1708. Mr. REED submitted an amendment intended to be proposed to
amendment SA 1618 proposed by Mr. McConnell (for Mr. Hatch (for himself
and Ms. Murkowski)) to the bill H.R. 1, to provide for reconciliation
pursuant to titles II and V of the concurrent resolution on the budget
for fiscal year 2018; which was ordered to lie on the table; as
follows:

Beginning on page 269, strike line 21 and all that follows
through page 273, line 4 and insert the following:

SEC. 13601. EXPANSION OF DENIAL OF DEDUCTION FOR CERTAIN
EXCESSIVE EMPLOYEE REMUNERATION.

(a) Application to All Current and Former Employees.--
(1) In general.--Section 162(m) 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) 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) 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) 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), 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) 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) 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), as
amended by subsection (a) and paragraph (1) of this
subsection, is amended

[[Page S7594]]

by striking subparagraph (B) and redesignating subparagraphs
(C) through (F) as subparagraphs (B) through (E),
respectively.
(B) Conforming amendments.--
(i) Section 162(m)(5), 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), 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) 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) 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)
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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