I 
111TH CONGRESS 
1ST SESSION H. R. 4412 
To amend the Internal Revenue Code of 1986 to impose a 50 percent 
tax on bonuses paid by TARP recipients. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 19, 2009 
Mr. WELCH introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committee on Small Busi-
ness, for a period to be subsequently determined by the Speaker, in each 
case for consideration of such provisions as fall within the jurisdiction of 
the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to impose 
a 50 percent tax on bonuses paid by TARP recipients. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Wall Street Bonus Tax 
Act’’. 
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SEC. 2. EXCISE TAX ON BONUSES RECEIVED BY EMPLOY-
EES 
OF 
BUSINESSES 
RECEIVING 
TARP 
FUNDS. 
(a) IN GENERAL.—Chapter 46 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new section: 
‘‘SEC. 4999A. BONUSES PAID BY TARP RECIPIENTS. 
‘‘(a) IN GENERAL.—In the case of any payment of 
compensation during 2010 in the nature of a bonus by 
a TARP recipient to any employee or former employee of 
such recipient, there is hereby imposed a tax equal to 50 
percent of so much of such compensation as exceeds 
$50,000. 
‘‘(b) TAX PAID BY TARP RECIPIENT.—The tax im-
posed by this section shall be paid by such TARP recipi-
ent. 
‘‘(c) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) TARP RECIPIENT.—The term ‘TARP re-
cipient’ means any person who receives funds under 
title I of the Emergency Economic Stabilization Act 
of 2008. 
‘‘(2) EMPLOYEE.—The term ‘employee’ includes 
officers and executives. 
‘‘(3) ENTITIES
ACQUIRED
BY
TARP
RECIPI-
ENTS.—If more than 50 percent of the equity inter-
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ests in any person is acquired by a TARP recipient, 
such person shall be treated as a TARP recipient for 
purposes of this section and subsection (a) shall 
apply to applicable compensation paid by such per-
son after the earlier of the date of such acquisition 
or the date that such acquisition is announced. 
‘‘(4) CERTAIN CONTROLLED GROUPS, ETC.—All 
employees who are treated as employed by a single 
employer under subsections (b), (c), or (m) of sec-
tion 414 shall be treated as employed by a single 
employer for purposes of this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 46 of such Code is amended by adding at the 
end the following new item: 
‘‘Sec. 4999A. Bonuses paid by TARP recipients.’’. 
SEC. 3. DIRECT LENDING PROGRAM FOR SMALL BUSINESS 
CONCERNS. 
(a) ESTABLISHMENT.—The Administrator of the 
Small Business Administration shall establish and carry 
out a program under which the Administrator is author-
ized to make loans directly to small business concerns. 
(b) ADMINISTRATION.—To the extent practicable, the 
Administrator of the Small Business Administration shall 
carry out the program established under subsection (a) in 
a manner similar to the loan program under section 7(a) 
of the Small Business Act (15 U.S.C. 636(a)). 
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‘‘(c) EXPENDITURES.—Amounts in the Small Busi-
ness Growth Fund shall be available, as provided in appro-
priations Acts, only for carrying out the direct lending 
program for small business concerns under section 3 of 
the Wall Street Bonus Act, as in effect on the date of 
the enactment of such Act.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter 98 of such Code is amended by adding at the 
end the following new item: 
‘‘Sec. 9511. Small Business Growth Fund.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of the enactment 
of this Act. 
Æ 
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