# 119-hr-6418: Employee Profit-Sharing Encouragement Act of 2025

119-hr-6418, Employee Profit-Sharing Encouragement Act of 2025, is a 119th Congress bill sponsored by Rep. Watson Coleman, Bonnie [D-NJ-12] (D-NJ); status introduced; PRIA reads it as touching household money (as of 2026-06-12).

- Canonical: https://policyrisk.com/legislation/119-hr-6418
- As of: 2026-06-12
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-6418
- Congress: 119
- Title: Employee Profit-Sharing Encouragement Act of 2025
- Status: introduced
- Introduced: 2025-12-03
- Sponsor: Rep. Watson Coleman, Bonnie [D-NJ-12] (D-NJ)
- Cosponsors: 1
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-06-12

## Summary

**Links executive pay tax deductions to employee profit-sharing.** This bill would deny a tax deduction for certain compensation paid to highly compensated individuals unless the employer makes qualified profit-sharing distributions to employees. - Employers would face a new condition to deduct executive pay. They must adopt a written cash profit-sharing plan tied to receipts, profit, revenues, or earnings. - Highly compensated employees could cause their pay to be non-deductible for employers if the company does not meet the distribution rules. - Workers, including part-time employees with at least 1 year of service, would gain rights to cash distributions under the plan. Distributions count only if aggregate payouts equal at least 5% of the employer's net income and the plan meets nondiscrimination rules.

## Cosponsors (1)

- Rep. Omar, Ilhan [D-MN-5] (D-MN), 2025-12-17T00:00:00.000Z

## Provisions PRIA read

- Tax deductions tied to employee profit-sharing: mixed, high. This bill would deny an employer a tax deduction for certain pay to highly compensated workers unless the employer makes cash profit-sharing payments to employees in the same taxable year. Payments would be under a written plan that gives employees, including part-time workers with at least one yea…

## Related bills

- 119-hr-7977: Energy Bills Relief Act
- 119-hr-7973: Momnibus Act
- 119-hr-10421: Transforming Education for the Future Act
- 119-hr-4714: End Polluter Welfare Act of 2025
- 119-hr-3971: Domestic Workers Bill of Rights Act
- 119-hr-3069: Medicare for All Act

## Sources
- [119-hr-6418 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/6418)

## Related
- [119-hr-7977: Energy Bills Relief Act](https://policyrisk.com/legislation/119-hr-7977)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-10421: Transforming Education for the Future Act](https://policyrisk.com/legislation/119-hr-10421)
- [119-hr-4714: End Polluter Welfare Act of 2025](https://policyrisk.com/legislation/119-hr-4714)
- [119-hr-3971: Domestic Workers Bill of Rights Act](https://policyrisk.com/legislation/119-hr-3971)
- [119-hr-3069: Medicare for All Act](https://policyrisk.com/legislation/119-hr-3069)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-6418 (as of 2026-06-12).