I 
117TH CONGRESS 
1ST SESSION 
H. R. 697 
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 
FEBRUARY 2, 2021 
Mr. DOGGETT (for himself, Mr. BLUMENAUER, Mr. CICILLINE, Mr. COHEN, 
Mr. DEFAZIO, Ms. DELAURO, Mr. DESAULNIER, Mr. ESPAILLAT, Mr. 
GARAMENDI, Mr. GRIJALVA, Ms. MOORE of Wisconsin, Mr. PRICE of 
North Carolina, Ms. SCHAKOWSKY, and Mrs. WATSON COLEMAN) intro-
duced 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. 
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 ‘‘Stop Subsidizing Mul-
timillion Dollar Corporate Bonuses Act’’. 
VerDate Sep 11 2014 
20:35 Feb 22, 2021
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H697.IH
H697
pamtmann on DSKBC07HB2PROD with BILLS
SEC. 2. EXPANSION OF DENIAL OF DEDUCTION FOR CER-
TAIN 
EXCESSIVE 
EMPLOYEE 
REMUNERA-
TION. 
(a) IN GENERAL.— 
(1) EXPANSION.—Section 162(m) of the Inter-
nal Revenue Code of 1986 is amended— 
(A) by striking ‘‘applicable employee remu-
neration’’ each place it appears in paragraphs 
(1), (4), and (5)(E) and inserting ‘‘applicable 
remuneration’’, 
(B) by striking ‘‘covered employee’’ each 
place it appears in paragraphs (1) and (4) and 
inserting ‘‘covered individual’’, and 
(C) by striking ‘‘employee’’ each place it 
appears in paragraph (1) and subparagraphs 
(A), (C)(ii), and (E) of paragraph (4) and in-
serting ‘‘individual’’. 
(2) COVERED INDIVIDUAL.—Paragraph (3) of 
section 162(m) of such Code is amended to read as 
follows: 
‘‘(3) COVERED INDIVIDUAL.—For purposes of 
this subsection, the term ‘covered individual’ 
means— 
‘‘(A) any individual who performs services 
(directly or indirectly) for the taxpayer (or any 
VerDate Sep 11 2014 
20:35 Feb 22, 2021
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H697.IH
H697
pamtmann on DSKBC07HB2PROD with BILLS
predecessor) for any taxable year beginning 
after December 31, 2020, or 
‘‘(B) any employee— 
‘‘(i) who was the principal executive 
officer or principal financial officer of the 
taxpayer (or any predecessor) at any time 
during any preceding taxable year begin-
ning after December 31, 2016, and before 
January 1, 2021, or who was an individual 
acting in such a capacity, or 
‘‘(ii) the total compensation of whom 
for any taxable year described in clause (i) 
was required to be reported to shareholders 
under the Securities Exchange Act of 1934 
by reason of such individual being among 
the 3 highest compensated officers for the 
taxable year (other than any individual de-
scribed in clause (i)). 
Such term shall include any employee who would be 
described in subparagraph (B)(ii) if the reporting 
described in such subparagraph were required as so 
described.’’. 
(3) CONFORMING AMENDMENTS.— 
VerDate Sep 11 2014 
20:35 Feb 22, 2021
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H697.IH
H697
pamtmann on DSKBC07HB2PROD with BILLS
(A) The heading for section 162(m) of the 
Internal Revenue Code of 1986 is amended by 
striking ‘‘EMPLOYEE’’. 
(B) The heading for section 162(m)(4) is 
amended by striking ‘‘EMPLOYEE’’. 
(b) MODIFICATION
OF DEFINITION
OF PUBLICLY 
HELD CORPORATION.—Section 162(m)(2) of the Internal 
Revenue Code of 1986 is amended— 
(1) by inserting ‘‘, with respect to any taxable 
year,’’ after ‘‘means’’, and 
(2) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) that was required to file reports 
under section 15(d) of such Act (15 U.S.C. 
78o(d)) at any time during the 3-taxable year 
period ending with such taxable year.’’. 
(c) REGULATORY AUTHORITY.— 
(1) IN GENERAL.—Section 162(m) of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph: 
‘‘(7) REGULATIONS.—The Secretary may pre-
scribe such guidance, rules, or regulations as are 
necessary to carry out the purposes of this sub-
section, including regulations— 
‘‘(A) with respect to reporting, and 
VerDate Sep 11 2014 
20:35 Feb 22, 2021
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H697.IH
H697
pamtmann on DSKBC07HB2PROD with BILLS
‘‘(B) to prevent avoidance of the purposes 
of this section by providing compensation 
through a pass-through or other entity.’’. 
(2) CONFORMING AMENDMENT.—Paragraph (6) 
of section 162(m) of such Code is amended by strik-
ing subparagraph (H). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
Æ 
VerDate Sep 11 2014 
20:35 Feb 22, 2021
Jkt 019200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H697.IH
H697
pamtmann on DSKBC07HB2PROD with BILLS