I 

114TH CONGRESS 

1ST SESSION H. R. 2103 

To amend the Internal Revenue Code of 1986 to expand the denial of 

deduction for certain excessive employee remuneration, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 29, 2015 

Mr. DOGGETT (for himself, Ms. BROWNLEY of California, Mr. CICILLINE, Ms. 

DELAURO, Mr. ELLISON, Mr. GRIJALVA, Mr. HUFFMAN, Ms. LEE, Mr. 

LIPINSKI, Mr. LOWENTHAL, Mr. MCDERMOTT, Mr. MCGOVERN, Ms. 

NORTON, Mr. POCAN, Mr. RANGEL, Mr. RUSH, Ms. SCHAKOWSKY, Ms. 

SLAUGHTER, Ms. TSONGAS, Mr. VAN HOLLEN, Mr. VISCLOSKY, Mr. 

BRADY of Pennsylvania, Mr. PASCRELL, and Ms. MOORE) 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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stop Subsidizing Mul5 timillion Dollar Corporate Bonuses Act’’. 


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1 SEC. 2. EXPANSION OF DENIAL OF DEDUCTION FOR CER2 TAIN EXCESSIVE EMPLOYEE REMUNERA3 TION. 

4 (a) APPLICATION TO ALL CURRENT AND FORMER

5 EMPLOYEES.— 

6 (1) IN GENERAL.—Section 162(m) of the Inter7 nal Revenue Code of 1986 is amended— 

8 (A) by striking ‘‘covered employee’’ each 

9 place it appears in paragraphs (1) and (4) and 

10 inserting ‘‘covered individual’’, and 

11 (B) by striking ‘‘such employee’’ each 

12 place it appears in subparagraphs (A) and (G) 

13 of paragraph (4) and inserting ‘‘such indi14 vidual’’. 

15 (2) COVERED INDIVIDUAL.—Section 162(m)(3) 

16 of such Code is amended to read as follows: 

17 ‘‘(3) COVERED INDIVIDUAL.—For purposes of 

18 this subsection, the term ‘covered individual’ means 

19 any individual who is an officer, director, or em20 ployee of the taxpayer or a former officer, director, 

21 or employee of the taxpayer.’’. 

22 (3) CONFORMING AMENDMENTS.— 

23 (A) Section 48D(b)(3)(A) of such Code is 

24 amended by inserting ‘‘(as in effect for taxable 

25 years beginning before January 1, 2015)’’ after 

26 ‘‘section 162(m)(3)’’. 


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1 (B) Section 409A(b)(3)(D)(ii) of such 

2 Code is amended by inserting ‘‘(as in effect for 

3 taxable years beginning before January 1, 

4 2015)’’ after ‘‘section 162(m)(3)’’. 

5 (b) EXPANSION OF APPLICABLE EMPLOYEE REMU6 NERATION.— 

7 (1) ELIMINATION OF EXCEPTION FOR COMMIS8 SION-BASED PAY.— 

9 (A) IN GENERAL.—Section 162(m)(4) of 

10 such Code, as amended by subsection (a), is 

11 amended by striking subparagraph (B) and by 

12 redesignating subparagraphs (C) through (G) 

13 as subparagraphs (B) through (F), respectively. 

14 (B) CONFORMING AMENDMENTS.— 

15 (i) Section 162(m)(5) of such Code is 

16 amended— 

17 (I) by striking ‘‘subparagraphs 

18 (B), (C), and (D) thereof’’ in sub19 paragraph (E) and inserting ‘‘sub20 paragraphs (B) and (C) thereof’’, and 

21 (II) by striking ‘‘subparagraphs 

22 (F) and (G)’’ in subparagraph (G) 

23 and inserting ‘‘subparagraphs (E) and 

24 (F)’’. 


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1 (ii) Section 162(m)(6) of such Code is 

2 amended— 

3 (I) by striking ‘‘subparagraphs 

4 (B), (C), and (D) thereof’’ in sub5 paragraph (D) and inserting ‘‘sub6 paragraphs (B) and (C) thereof’’, and 

7 (II) by striking ‘‘subparagraphs 

8 (F) and (G)’’ in subparagraph (G) 

9 and inserting ‘‘subparagraphs (E) and 

10 (F)’’. 

11 (2) INCLUSION OF PERFORMANCE-BASED COM12 PENSATION.— 

13 (A) IN GENERAL.—Section 162(m)(4) of 

14 such Code, as amended by subsection (a) and 

15 paragraph (1) of this subsection, is amended by 

16 striking subparagraph (B) and redesignating 

17 subparagraphs (C) through (F) as subpara18 graphs (B) through (E), respectively. 

19 (B) CONFORMING AMENDMENTS.— 

20 (i) Section 162(m)(5) of such Code, 

21 as amended by paragraph (1), is amend22 ed— 

23 (I) by striking ‘‘subparagraphs 

24 (B) and (C) thereof’’ in subparagraph 


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1 (E) and inserting ‘‘subparagraph (B) 

2 thereof’’, and 

3 (II) by striking ‘‘subparagraphs 

4 (E) and (F)’’ in subparagraph (G) 

5 and inserting ‘‘subparagraphs (D) and 

6 (E)’’. 

7 (ii) Section 162(m)(6) of such Code, 

8 as amended by paragraph (1), is amend9 ed— 

10 (I) by striking ‘‘subparagraphs 

11 (B) and (C) thereof’’ in subparagraph 

12 (D) and inserting ‘‘subparagraph (B) 

13 thereof’’, and 

14 (II) by striking ‘‘subparagraphs 

15 (E) and (F)’’ in subparagraph (G) 

16 and inserting ‘‘subparagraphs (D) and 

17 (E)’’. 

18 (c) EXPANSION OF APPLICABLE EMPLOYER.—Sec19 tion 162(m)(2) of such Code is amended to read as fol20 lows: 

21 ‘‘(2) PUBLICLY HELD CORPORATION.—For pur22 poses of this subsection, the term ‘publicly held cor23 poration’ means any corporation which is an issuer 

24 (as defined in section 3 of the Securities Exchange 

25 Act of 1934 (15 U.S.C. 78c))— 


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1 ‘‘(A) that has a class of securities reg2 istered under section 12 of such Act (15 U.S.C. 

3 78l), or 

4 ‘‘(B) that is required to file reports under 

5 section 15(d) of such Act (15 U.S.C. 780(d)).’’. 

6 (d) REGULATORY AUTHORITY.— 

7 (1) IN GENERAL.—Section 162(m) of such 

8 Code is amended by adding at the end the following 

9 new paragraph: 

10 ‘‘(7) REGULATIONS.—The Secretary may pre11 scribe such guidance, rules, or regulations, including 

12 with respect to reporting, as are necessary to carry 

13 out the purposes of this subsection.’’. 

14 (2) CONFORMING AMENDMENT.—Section 

15 162(m)(6) of such Code is amended by striking sub16 paragraph (H). 

17 (e) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to taxable years beginning after 

19 December 31, 2014. 

Æ 


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