Stop Subsidizing Multimillion Dollar Corporate Bonuses Act

This Act may be cited as the Stop Subsidizing Multimillion Dollar Corporate Bonuses Act.
Section 162(m) of the Internal Revenue Code of 1986 is amended—
by striking applicable employee remuneration each place it appears in paragraphs (1), (4), and (5)(E) and inserting applicable remuneration,
by striking covered employee each place it appears in paragraphs (1) and (4) and inserting covered individual, and
by striking employee each place it appears in paragraph (1) and subparagraphs (A), (C)(ii), and (E) of paragraph (4) and inserting 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 performs services (directly or indirectly) for the taxpayer (or any predecessor) for any taxable year beginning after December 31, 2024, or
any employee—
who was the principal executive officer or principal financial officer of the taxpayer (or any predecessor) at any time during any preceding taxable year beginning after December 31, 2016, and before January 1, 2025, or who was an individual acting in such a capacity, or
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 described in clause (i)).
The heading for section 162(m) of the Internal Revenue Code of 1986 is amended by striking employee.
The heading for section 162(m)(4) is amended by striking employee.
Section 162(m)(2) of the Internal Revenue Code of 1986 is amended—
by inserting , with respect to any taxable year, after means, and
by striking subparagraph (B) and inserting the following:
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.
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 as are necessary to carry out the purposes of this subsection, including regulations—
with respect to reporting, and
to prevent avoidance of the purposes of this section by providing compensation through a pass-through or other entity.
Paragraph (6) of section 162(m) of such Code is amended by striking subparagraph (H).
The amendments made by this section shall apply to taxable years beginning after December 31, 2024.