Sec. 4. Modification of limitation on excessive remuneration
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Paragraph
(4)of section 162(m) of the Internal Revenue Code of 1986 is amended by striking subparagraphs
(B)and
(C)and by redesignating subparagraphs
(D)through
(G)as subparagraphs
(B)through (E), respectively. Section 162(m)(5) of such Code is amended— by striking subparagraphs (B), (C), and
(D)thereof in subparagraph
(E)and inserting subparagraph
(B)thereof , and by striking subparagraphs
(F)and
(G)in subparagraph
(G)and inserting subparagraphs
(D)and
(E). Section 162(m)(6) of such Code is amended— by striking subparagraphs (B), (C), and
(D)thereof in subparagraph
(D)and inserting subparagraph
(B)thereof , and by striking subparagraphs
(F)and
(G)in subparagraph
(G)and inserting subparagraphs
(D)and
(E). Paragraph
(2)of section 162(m) of the Internal Revenue Code of 1986 is amended to read as follows: For purposes of this subsection, the term publicly held corporation means any corporation which is an issuer (as defined in section 3 of the Securities Exchange Act of 1934 ( 15 U.S.C. 78c ))— the securities of which are registered under section 12 of such Act ( 15 U.S.C. 78l ), or that is required to file reports under section 15(d) of such Act ( 15 U.S.C. 78o(d) ). . Section 162(m) of the Internal Revenue Code of 1986, as amended by subsection (a), is amended— by striking covered employee each place it appears in paragraphs
(1)and
(4)and inserting covered individual , and by striking such employee each place it appears in subparagraphs
(A)and
(E)of paragraph
(4)and inserting such individual . Paragraph
(3)of section 162(m) of such Code is amended to read as follows: For purposes of this subsection, the term covered individual means any individual who is an officer, director, or employee of the taxpayer or a former officer, director, or employee of the taxpayer. . Section 48D(b)(3)(A) of such Code is amended by inserting (as in effect for taxable years beginning before January 1, 2015) after section 162(m)(3) . Section 409A(b)(3)(D)(ii) of such Code is amended by inserting (as in effect for taxable years beginning before January 1, 2015) after section 162(m)(3) . Paragraph
(4)of section 162(m), as amended by subsection (a), is amended by adding at the end the following new subparagraph: Remuneration shall not fail to be applicable employee remuneration merely because it is includible in the income of, or paid to, a person other than the covered individual, including after the death of the covered individual. . Section 162(m) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: The Secretary may prescribe such guidance, rules, or regulations, including with respect to reporting, as are necessary to carry out the purposes of this subsection. . Paragraph
(6)of section 162(m) of such Code is amended by striking subparagraph (H). For purposes of the amount of any increase in revenue to the Treasury by reason of the amendments made by this section, any such amount that is in excess of the total amount appropriated under section 2(f) of this Act shall be, at such times and in such manner as determined appropriate by the Secretary of the Treasury (or the Secretary's delegate), deposited in the Trust Funds (as defined in subsection
(c)of section 201 of the Social Security Act ( 42 U.S.C. 401 )), with— 50 percent of such amount to be deposited in the Federal Old-Age and Survivors Insurance Trust Fund (as defined in subsection
(a)of such section); and 50 percent of such amount to be deposited in the Federal Disability Insurance Trust Fund (as defined in subsection
(b)of such section). The amendments made by this section shall apply to taxable years beginning after December 31, 2015.
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Sec. 4
Modification of limitation on excessive remuneration
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