This bill would end the federal 1% tax that some companies pay when they buy back their own stock. The tax was created in 2022. The bill repeals it starting with tax years that begin after December 31, 2024. Today, publicly traded U.S. companies generally owe a nondeductible 1% tax on the value of stock they repurchase, with some exceptions; this bill would remove that tax going forward.

Key points:

• Who is affected: Publicly traded U.S. corporations that repurchase their own shares.
• What changes: The 1% stock buyback tax is repealed.
• When: For taxable years beginning after December 31, 2024.