Sec. 3801. Modification of limitation on excessive employee remuneration
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/bill/115/hr/1/eh/section-3801A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 162(m)(4) is amended by striking subparagraphs
(B)and
(C)and by redesignating subparagraphs (D), (E), (F), and
(G)as subparagraphs (B), (C), (D), and (E), respectively. Paragraphs (5)(E) and (6)(D) of section 162(m) are each amended by striking subparagraphs (B), (C), and
(D)and inserting subparagraph
(B). Paragraphs (5)(G) and (6)(G) of section 162(m) are each amended by striking
(F)and
(G)and inserting
(D)and
(E). Section 162(m)(2) 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 required to be 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)(3) is amended— in subparagraph (A), by striking as of the close of the taxable year, such employee is the chief executive officer of the taxpayer or is and inserting such employee is the principal executive officer or principal financial officer of the taxpayer at any time during the taxable year, or was , in subparagraph (B)— by striking 4 and inserting 3 , and by striking (other than the chief executive officer) and inserting (other than the principal executive officer or principal financial officer) , and by striking or at the end of subparagraph (A), by striking the period at the end of subparagraph
(B)and inserting , or , and by adding at the end the following: was a covered employee of the taxpayer (or any predecessor) for any preceding taxable year beginning after December 31, 2016. Such term shall include any employee who would be described in subparagraph
(B)if the reporting described in such subparagraph were required as so described. . Section 162(m)(4), 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 employee, including after the death of the covered employee. . The amendments made by this section shall apply to taxable years beginning after December 31, 2017.
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Sec. 3801
Modification of limitation on excessive employee remuneration
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