S. 4796 – Stock Buyback Accountability Act of 2026

AI-Generated Summary

Updated June 25, 2026 at 4:21 AM UTC

The Stock Buyback Accountability Act of 2026 would increase the federal excise tax on corporate stock buybacks from 1% to 4%, aiming to make share repurchases more costly for companies. It also creates a carve‑out so that stock given to certain high‑paid employees or executives is not subject to the tax adjustment. The changes apply to buybacks made after the law’s passage, with a special prorated rule for the first year, and the exemption for stock issuances kicks in for years ending more than 90 days after enactment.

Key Provisions

Raises the excise tax on corporate stock repurchases from 1% to 4%.
Adds an exception so the tax does not apply to stock issued to covered employees or to individuals who receive more than $1 million in remuneration from the corporation in a year.
The higher tax rate takes effect for any buybacks made after the law is enacted, with a prorated calculation for the tax reduction in the year the law takes effect.
The new exception for stock issuances applies to taxable years ending more than 90 days after the enactment date.

Legislative Activity

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1 earlier action

SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text: CR S2821)

Finance Committee

June 16, 2026

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SenateIntro Referral

Introduced in Senate

June 16, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text: CR S2821)

Finance Committee

June 16, 2026

Floor Debate

1 member

What members said about S. 4796 on the floor

1 Democrat

Sen. Charles E. SchumerD-NY · Jun 16, 2026

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Sen. Charles E. SchumerD-NY · Jun 16, 2026

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

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Introduced in SenateIssued June 16, 2026

II

119th CONGRESS

2d Session

S. 4796

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.

1.

Short title

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

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.