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. MCCOL-
LUM, Mrs. WATSON COLEMAN, Mr. GARAMENDI, Mr. MULLIN, Mr. GRI-
JALVA, 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 In-
surance Corporation has been appointed as conservator 
or receiver. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Deliver Executive Prof-
its On Seized Institutions to Taxpayers Act’’ or the ‘‘DE-
POSIT Act’’. 
SEC. 2. SENSE OF THE CONGRESS. 
It is the sense of the Congress that the revenue raised 
from the tax imposed under section 1(k) of the Internal 
Revenue Code of 1986 (as added by section 3) will be re-
turned to the Deposit Insurance Fund (as defined in sec-
tion 3 of the Federal Deposit Insurance Act (12 U.S.C. 
1813)). 
SEC. 3. HIGHER RATE OF TAX ON BONUSES AND STOCK 
PROFITS RECEIVED BY CERTAIN BANK EX-
ECUTIVES. 
(a) IN GENERAL.—Section 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the fol-
lowing new subsection: 
‘‘(k) RATE OF TAX ON PROFITS RECEIVED BY CER-
TAIN BANK EXECUTIVES.— 
‘‘(1) IN GENERAL.—In the case of any applica-
ble individual who receives any excluded profits dur-
ing the taxable year, the tax imposed by this section 
shall be equal to— 
‘‘(A) the tax which would be imposed by 
this section if the taxable income of such indi-
vidual for the taxable year were reduced (but 
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not below zero) by the amount of the excluded 
profits received by such individual during such 
taxable year, plus 
‘‘(B) 90 percent of the excluded profits de-
scribed in subclause (I) of paragraph (2)(B)(i) 
which were received by such individual during 
such taxable year, plus 
‘‘(C) 100 percent of the excluded profits 
described in subclause (II) of such paragraph 
which were received by such individual during 
such taxable year. 
‘‘(2) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) APPLICABLE INDIVIDUAL.—The term 
‘applicable individual’ means any individual— 
‘‘(i) who— 
‘‘(I) was employed by an insured 
depository institution for which the 
Federal Deposit Insurance Corpora-
tion has been appointed conservator 
or receiver, and 
‘‘(II) served as an executive offi-
cer for such institution prior to such 
conservatorship or receivership, and 
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‘‘(ii) with respect to the taxable year 
in which the excluded profits were received, 
whose adjusted gross income (reduced by 
the amount of such excluded profits) for 
such taxable year was greater than 
$250,000. 
‘‘(B) EXCLUDED PROFITS.— 
‘‘(i) IN
GENERAL.—The term ‘ex-
cluded profits’ means, with respect to any 
applicable 
individual 
for 
any 
taxable 
year— 
‘‘(I) any payment in the nature 
of a bonus which is paid— 
‘‘(aa) after March 1, 2023, 
and 
‘‘(bb) by any insured deposi-
tory institution within the 60-day 
period prior to the date on which 
the Federal Deposit Insurance 
Corporation was appointed con-
servator or receiver for such in-
stitution, or 
‘‘(II) any profit made by such ap-
plicable individual from the sale of 
any security of the insured depository 
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institution that employs such applica-
ble individual, if that sale occurs not 
more than 60 days before the date on 
which the Federal Deposit Insurance 
Corporation is appointed conservator 
or receiver with respect to the insured 
depository institution. 
‘‘(ii) CONTROLLED GROUPS.— 
‘‘(I) IN GENERAL.—For purposes 
of clause (i), all persons treated as a 
single employer under subsection (a) 
or (b) of section 52 or under sub-
section (m) or (o) of section 414 shall 
be treated as one person. 
‘‘(II) INCLUSION
OF
FOREIGN 
CORPORATIONS.—For 
purposes 
of 
subclause (I), in applying subsections 
(a) and (b) of section 52 to this sec-
tion, section 1563 shall be applied 
without regard to subsection (b)(2)(C) 
thereof. 
‘‘(C) EXECUTIVE OFFICER.—The term ‘ex-
ecutive officer’ means, with respect to any in-
sured depository institution, its president, any 
vice president of such institution in charge of a 
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principal business unit, division or function 
(such as sales, administration or finance), any 
other officer who performs a policy making 
function or any other person who performs 
similar policy making functions for such institu-
tion. Executive officers of subsidiaries may be 
deemed executive officers of such institution if 
they perform such policy making functions for 
such institution. 
‘‘(D) 
INSURED
DEPOSITORY
INSTITU-
TION.—The term ‘insured depository institu-
tion’ has the same meaning given such term 
under section 3 of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years ending after the 
date of the enactment of this Act. 
Æ 
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