Stop Subsidizing Multimillion Dollar Corporate Bonuses Act
Sponsored By: Representative Doggett, Lloyd [D-TX-37]
Introduced
Summary
Limits corporate tax deductions for multimillion-dollar executive pay. This bill would broaden who counts as a "covered individual" and tighten the rules that deny corporate tax deductions under section 162(m) so more high pay could be nondeductible.
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- Corporations: Public companies and certain filers under section 15(d) would face a wider deduction limit because the definition of "publicly held corporation" is expanded and the rule covers more individuals. The changes would apply to taxable years beginning after Dec 31, 2024.
- Executives and service providers: The bill would treat many more current and former top officers and anyone who performed services after Dec 31, 2020 as potentially subject to the deduction cap, including certain CEOs, CFOs, and the top three compensated officers from 2016 to 2020.
- Tax administration: The Secretary of the Treasury would get explicit authority to issue rules on reporting and to block avoidance, including rules aimed at payments routed through pass-throughs or other entities.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 1 costs, 0 mixed.
Tighter limits on executive pay deductions
If enacted, public companies would lose more tax write-offs for multimillion-dollar pay. More people would count as covered, including anyone who performs services after 2020 and certain former top officers. A company would be treated as publicly held if it had to file SEC reports at any time in the prior three tax years. Treasury could set reporting and anti-avoidance rules, including for pay routed through other entities. The changes would apply to tax years starting after December 31, 2024.
Sponsors & CoSponsors
Sponsor
Doggett, Lloyd [D-TX-37]
TX • D
Cosponsors
Rep. Casar, Greg [D-TX-35]
TX • D
Sponsored 5/1/2025
Rep. Chu, Judy [D-CA-28]
CA • D
Sponsored 5/1/2025
Cohen
TN • D
Sponsored 5/1/2025
Rep. DeLauro, Rosa L. [D-CT-3]
CT • D
Sponsored 5/1/2025
Rep. Deluzio, Christopher R. [D-PA-17]
PA • D
Sponsored 5/1/2025
Espaillat
NY • D
Sponsored 5/1/2025
Rep. Garamendi, John [D-CA-8]
CA • D
Sponsored 5/1/2025
Rep. García, Jesús G. "Chuy" [D-IL-4]
IL • D
Sponsored 5/1/2025
Johnson (GA)
GA • D
Sponsored 5/1/2025
Rep. Lee, Summer L. [D-PA-12]
PA • D
Sponsored 5/1/2025
Rep. Magaziner, Seth [D-RI-2]
RI • D
Sponsored 5/1/2025
Rep. Moore, Gwen [D-WI-4]
WI • D
Sponsored 5/1/2025
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 5/1/2025
Rep. Raskin, Jamie [D-MD-8]
MD • D
Sponsored 5/1/2025
Rep. Salinas, Andrea [D-OR-6]
OR • D
Sponsored 5/1/2025
Schakowsky
IL • D
Sponsored 5/1/2025
Stansbury
NM • D
Sponsored 5/1/2025
Rep. Takano, Mark [D-CA-39]
CA • D
Sponsored 5/1/2025
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Sponsored 5/1/2025
Rep. Tokuda, Jill N. [D-HI-2]
HI • D
Sponsored 5/1/2025
Rep. Watson Coleman, Bonnie [D-NJ-12]
NJ • D
Sponsored 5/1/2025
Grijalva
AZ • D
Sponsored 5/13/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov