H.R.3140

Expands tax code to deny deductions for excessive executive pay at publicly traded companies.

The Stop Subsidizing Multimillion Dollar Corporate Bonuses Act amends the Internal Revenue Code to expand the denial of deduction for certain excessive employee remuneration. It modifies the definition of publicly held corporation to include any employee whose compensation was required to be reported to shareholders under the Securities Exchange Act of 1934. The bill also updates the definition of "covered individual" to include any individual performing services for the taxpayer. The amendments apply to taxable years beginning after December 31, 2024.