I 

118TH CONGRESS 

1ST SESSION H. R. 1654 

To amend the Internal Revenue Code of 1986 to impose a higher rate 

of tax on bonuses and profits from sales of stock received by executives 

employed by failing banks that were closed and for which the Federal 

Deposit Insurance Corporation has been appointed as conservator or 

receiver. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 17, 2023 

Mr. SCHIFF (for himself, Mr. LEVIN, Mr. GOMEZ, Mr. TAKANO, Ms. MCCOLLUM, Mrs. WATSON COLEMAN, Mr. GARAMENDI, Mr. MULLIN, Mr. GRIJALVA, Mr. MCGOVERN, Ms. PINGREE, Mr. GOLDMAN of New York, Mr. 

SWALWELL, Mr. EVANS, Mr. BOYLE of Pennsylvania, Mr. POCAN, Ms. 

ESHOO, Mr. CARSON, and Mr. KHANNA) 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 impose 

a higher rate of tax on bonuses and profits from sales 

of stock received by executives employed by failing banks 

that were closed and for which the Federal Deposit Insurance Corporation has been appointed as conservator 

or receiver. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Deliver Executive Prof3 its On Seized Institutions to Taxpayers Act’’ or the ‘‘DE4 POSIT Act’’. 

5 SEC. 2. SENSE OF THE CONGRESS. 

6 It is the sense of the Congress that the revenue raised 

7 from the tax imposed under section 1(k) of the Internal 

8 Revenue Code of 1986 (as added by section 3) will be re9 turned to the Deposit Insurance Fund (as defined in sec10 tion 3 of the Federal Deposit Insurance Act (12 U.S.C. 

11 1813)). 

12 SEC. 3. HIGHER RATE OF TAX ON BONUSES AND STOCK 

13 PROFITS RECEIVED BY CERTAIN BANK EX14 ECUTIVES. 

15 (a) IN GENERAL.—Section 1 of the Internal Revenue 

16 Code of 1986 is amended by adding at the end the fol17 lowing new subsection: 

18 ‘‘(k) RATE OF TAX ON PROFITS RECEIVED BY CER19 TAIN BANK EXECUTIVES.— 

20 ‘‘(1) IN GENERAL.—In the case of any applica21 ble individual who receives any excluded profits dur22 ing the taxable year, the tax imposed by this section 

23 shall be equal to— 

24 ‘‘(A) the tax which would be imposed by 

25 this section if the taxable income of such indi26 vidual for the taxable year were reduced (but 


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1 not below zero) by the amount of the excluded 

2 profits received by such individual during such 

3 taxable year, plus 

4 ‘‘(B) 90 percent of the excluded profits de5 scribed in subclause (I) of paragraph (2)(B)(i) 

6 which were received by such individual during 

7 such taxable year, plus 

8 ‘‘(C) 100 percent of the excluded profits 

9 described in subclause (II) of such paragraph 

10 which were received by such individual during 

11 such taxable year. 

12 ‘‘(2) DEFINITIONS.—For purposes of this sub13 section— 

14 ‘‘(A) APPLICABLE INDIVIDUAL.—The term 

15 ‘applicable individual’ means any individual— 

16 ‘‘(i) who— 

17 ‘‘(I) was employed by an insured 

18 depository institution for which the 

19 Federal Deposit Insurance Corpora20 tion has been appointed conservator 

21 or receiver, and 

22 ‘‘(II) served as an executive offi23 cer for such institution prior to such 

24 conservatorship or receivership, and 


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1 ‘‘(ii) with respect to the taxable year 

2 in which the excluded profits were received, 

3 whose adjusted gross income (reduced by 

4 the amount of such excluded profits) for 

5 such taxable year was greater than 

6 $250,000. 

7 ‘‘(B) EXCLUDED PROFITS.— 

8 ‘‘(i) IN GENERAL.—The term ‘ex9 cluded profits’ means, with respect to any 

10 applicable individual for any taxable 

11 year— 

12 ‘‘(I) any payment in the nature 

13 of a bonus which is paid— 

14 ‘‘(aa) after March 1, 2023, 

15 and 

16 ‘‘(bb) by any insured deposi17 tory institution within the 60-day 

18 period prior to the date on which 

19 the Federal Deposit Insurance 

20 Corporation was appointed con21 servator or receiver for such in22 stitution, or 

23 ‘‘(II) any profit made by such ap24 plicable individual from the sale of 

25 any security of the insured depository 


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1 institution that employs such applica2 ble individual, if that sale occurs not 

3 more than 60 days before the date on 

4 which the Federal Deposit Insurance 

5 Corporation is appointed conservator 

6 or receiver with respect to the insured 

7 depository institution. 

8 ‘‘(ii) CONTROLLED GROUPS.— 

9 ‘‘(I) IN GENERAL.—For purposes 

10 of clause (i), all persons treated as a 

11 single employer under subsection (a) 

12 or (b) of section 52 or under sub13 section (m) or (o) of section 414 shall 

14 be treated as one person. 

15 ‘‘(II) INCLUSION OF FOREIGN

16 CORPORATIONS.—For purposes of 

17 subclause (I), in applying subsections 

18 (a) and (b) of section 52 to this sec19 tion, section 1563 shall be applied 

20 without regard to subsection (b)(2)(C) 

21 thereof. 

22 ‘‘(C) EXECUTIVE OFFICER.—The term ‘ex23 ecutive officer’ means, with respect to any in24 sured depository institution, its president, any 

25 vice president of such institution in charge of a 


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1 principal business unit, division or function 

2 (such as sales, administration or finance), any 

3 other officer who performs a policy making 

4 function or any other person who performs 

5 similar policy making functions for such institu6 tion. Executive officers of subsidiaries may be 

7 deemed executive officers of such institution if 

8 they perform such policy making functions for 

9 such institution. 

10 ‘‘(D) INSURED DEPOSITORY INSTITU11 TION.—The term ‘insured depository institu12 tion’ has the same meaning given such term 

13 under section 3 of the Federal Deposit Insur14 ance Act (12 U.S.C. 1813).’’. 

15 (b) EFFECTIVE DATE.—The amendment made by 

16 this section shall apply to taxable years ending after the 

17 date of the enactment of this Act. 

Æ 


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