This bill aims to stop companies from using tax write-offs for very large executive pay and bonuses. It broadens the tax rule that blocks deductions for “excessive” pay, expands who counts as a covered person, and gives the government more power to prevent workarounds. In short, more high-end executive pay would no longer reduce a company’s taxes.

Key points:

• Who is affected: Publicly held companies and a wider group of people tied to them. “Covered individuals” would include anyone who performs services for the company after 2020, plus certain top officers from earlier years whose pay had to be reported to shareholders.
• What changes: The law’s definitions are updated so more types of big pay count, the definition of which companies are covered is revised, and the Treasury can issue rules to close loopholes, including payments routed through pass‑through or other entities.
• When: These changes would apply to tax years starting after December 31, 2024.

The short title is “Stop Subsidizing Multimillion Dollar Corporate Bonuses Act,” reflecting its goal to reduce taxpayer subsidies for very high executive pay through the tax code.