H.R. 324 – Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

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Updated January 20, 2026 at 2:11 AM UTC

The Stop Subsidizing Multimillion Dollar Corporate Bonuses Act amends the Internal Revenue Code to broaden the rules that deny tax deductions for large executive compensation. It expands who is considered a “covered individual” and tightens reporting for publicly held corporations, aiming to prevent corporations from subsidizing huge bonuses. The changes affect corporations and high‑paid executives whose compensation is reported to shareholders.

Key Provisions

Expands the definition of “covered individual” to include anyone providing services after 2020 and former chief executive or financial officers from 2016‑2020 whose pay was among the three highest reported to shareholders.
Replaces terms like “employee” and “covered employee” with “individual” and “covered individual” throughout section 162(m) of the tax code.
Modifies the definition of a publicly held corporation to tighten reporting requirements for entities that file reports under the Securities Exchange Act.
Authorizes the Treasury Secretary to issue regulations for reporting and to prevent avoidance through pass‑through or other entities.
Applies the new rules to taxable years beginning after December 31, 2022.

Legislative Activity

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 12, 2023

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HouseIntro Referral

Introduced in House

January 12, 2023

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

January 12, 2023

Bill Text

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Introduced in HouseIssued January 12, 2023

I

118th CONGRESS

1st Session

H. R. 324

IN THE HOUSE OF REPRESENTATIVES

January 12, 2023

Mr. Doggett (for himself, Mr. Blumenauer, Ms. Chu, Mr. Cicilline, Mr. Cohen, Ms. DeLauro, Mr. DeSaulnier, Mr. Espaillat, Mr. Garamendi, Mr. Grijalva, Ms. Moore of Wisconsin, Mr. Pocan, Ms. Schakowsky, and Mrs. Watson Coleman) introduced the following bill; which was referred to the Committee on Ways and Means

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.

1.

Short title

This Act may be cited as the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act.

2.

Expansion of denial of deduction for certain excessive employee remuneration

(a)

In general

(1)

Expansion

Section 162(m) of the Internal Revenue Code of 1986 is amended—

(A)

by striking applicable employee remuneration each place it appears in paragraphs (1), (4), and (5)(E) and inserting applicable remuneration,

(B)

by striking covered employee each place it appears in paragraphs (1) and (4) and inserting covered individual, and

(C)

by striking employee each place it appears in paragraph (1) and subparagraphs (A), (C)(ii), and (E) of paragraph (4) and inserting 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—

(A)

any individual who performs services (directly or indirectly) for the taxpayer (or any predecessor) for any taxable year beginning after December 31, 2020, or

(B)

any employee—

(i)

who was the principal executive officer or principal financial officer of the taxpayer (or any predecessor) at any time during any preceding taxable year beginning after December 31, 2016, and before January 1, 2021, or who was an individual acting in such a capacity, or

(ii)

the total compensation of whom for any taxable year described in clause (i) was required to be reported to shareholders under the Securities Exchange Act of 1934 by reason of such individual being among the 3 highest compensated officers for the taxable year (other than any individual described in clause (i)).

Such term shall include any employee who would be described in subparagraph (B)(ii) if the reporting described in such subparagraph were required as so described.

.

(3)

Conforming amendments

(A)

The heading for section 162(m) of the Internal Revenue Code of 1986 is amended by striking employee.

(B)

The heading for section 162(m)(4) is amended by striking employee.

(b)

Modification of definition of publicly held corporation

Section 162(m)(2) of the Internal Revenue Code of 1986 is amended—

(1)

by inserting , with respect to any taxable year, after means, and

(2)

by striking subparagraph (B) and inserting the following:

(B)

that was required to file reports under section 15(d) of such Act (15 U.S.C. 78o(d)) at any time during the 3-taxable year period ending with such taxable year.

.

(c)

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 as are necessary to carry out the purposes of this subsection, including regulations—

(A)

with respect to reporting, and

(B)

to prevent avoidance of the purposes of this section by providing compensation through a pass-through or other entity.

.

(2)

Conforming amendment

Paragraph (6) of section 162(m) of such Code is amended by striking subparagraph (H).

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2022.