S.Amdt. 2627

MR. REED submitted amendment SA 2627 to the bill H.R. 1. The purpose of this amendment is to expand the denial of a deduction for certain excessive employee remuneration.

The amendment aims to change the tax rules by replacing terms like employee and covered employee with individual and covered individual. It broadens who counts as a covered individual to include any individual who performs services for the taxpayer for any taxable year beginning after December 31, 2024, or certain past principal executive officers, principal financial officers, and top-compensated officers.

• It changes the definition of a publicly held corporation based on reporting requirements.
• It gives the Secretary the authority to prescribe guidance, rules, and regulations to carry out the purposes of this subsection, including rules to prevent the avoidance of these rules through pass-through or other entities.
• The changes apply to taxable years beginning after December 31, 2024.