,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #abid  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,febru>y #ad1         
#bjai,mrs4 ,watson ,coleman introduc$ ! 
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,ways & ,means  ,a ,,bill 
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to d5y ! d$uction = executive     
comp5sation unless ! employ] ma9ta9s    
pr(it-%>+ di/ributions = employees4  #a4
 ,%ort title ,?is ,act may be cit$ z !  
,employee ,pr(it-,%>+ ,enc\ragem5t ,act 
( #bjai4  #b4 ,d5ial ( d$uction =       
executive comp5sation unless employ]    
ma9ta9s pr(it-%>+ di/ributions  7a7 ,9  
g5]al ,section #afb ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$ by r$esignat+   
subsection 7s7 z subsection 7t7 & by    
ins]t+ aft] subsection 7r7 ! foll[+ new 
subsection3  7s7 ,executive comp5sation 
paid by employ]s :o d n ma9ta9          
pr(it-,%>+ di/ributions  7#a7 ,9 g5]al  
,9 ! case ( a specifi$ employ]1 no      
d$uction %all be all[$ "u ?is *apt] =   
applicable employee remun]ation )       

respect to any highly comp5sat$         
individual 7)9 ! mean+ ( section        
#aje7;h77 = any taxable ye> unless      
qualifi$ pr(it-%>+ di/ributions are made
 dur+ su* taxable ye>4  7#b7 ,qualifi$  
pr(it-%>+ di/ributions ,= purposes ( ?is
 subsection-- 7,a7 ,9 g5]al ,! t]m      
qualifi$ pr(it-%>+ di/ributions means a 
ca% di/ribution made pursuant to a      
writt5 plan ( ! employ] "u :i*--  7i7   
employees 7includ+ "p-"t employees7 :o h
 be5 employ$ = at lea/ #a ye> z ( ! date
 ( ! di/ribution h a "r to su*          
di/ribution1 &  7ii7 ! am\nt ( su*      
di/ributions are def9$ "u su* plan on ! 
basis ( a measure ( ! receipts1 pr(it1  
rev5ues1 or e>n+s ( su* employ]4  7,b7  
,m9imum di/ribution requirem5ts ,su* t]m
 %all n include any di/ributions made   
pursuant to su* plan dur+ ! taxable ye> 
if ! aggregate di/ributions made        
pursuant to su* plan dur+ su* taxable   
ye> are less ?an #e p]c5t ( ! employ]'s 
net income = ! taxable ye> z det]m9$    
pursuant to ! employ]'s books & records 

prep>$ 9 accordance ) ! employ]'s       
acc\nt+ proc$ures4  7,c7                
,nondiscrim9ation ,su* t]m %all n       
include any di/ributions made pursuant  
to su* plan dur+ ! taxable ye> unless   
su* plan satisfies requirem5ts simil> to
 ! requirem5ts ( section                
#dja7k77#c77;,a77ii7 appli$ by treat+ ! 
di/ributions made pursuant to ! plan z  
?\gh su* di/ributions 7 contributions   
paid ov] to ! tru/ ref]r$ to 9 su*      
section4  7,d7 ,exception if            
di/ributions w\ld jeop>dize ! bus9ess   
,an employ] %all n fail to be treat$ z  
mak+ qualifi$ pr(it-%>+ di/ributions    
dur+ ! taxable ye> to ! ext5t t su*     
employ] e/abli%es to ! satisfaction ( ! 
,secret>y by cle> & conv9c+ evid5ce t   
mak+ su* di/ributions w\ld jeop>dize !  
ability ( ! employ] to cont9ue z a go+  
conc]n4  7#c7 ,specifi$ employ] ,=      
purposes ( ?is subsection-- 7,a7 ,9     
g5]al ,! t]m specifi$ employ] means1 )  
respect to any taxable ye>1 any employ] 
:i* meets ! gross receipts te/ ( section

 #ddh7;c7 7det]m9$ )\t reg>d to p>agraph
 7#d7 !re(7 = su* taxable ye>4  7,b7    
,application ( gross receipts te/ to    
individuals1 etc ,= purposes (          
subp>agraph 7,a71 9 ! case ( any employ]
 :i* is n a corporation or a p>tn]%ip1 !
 gross receipts te/ ref]r$ to 9 su*     
subp>agraph %all be appli$ 9 ! same     
mann] z if ea* trade or bus9ess ( su*   
employ] 7 a corporation or p>tn]%ip4    
7#d7 ,applicable employee remun]ation ,=
 purposes ( ?is subsection1 ! t]m       
applicable employee remun]ation has !   
mean+ giv5 su* t]m by subsection        
7m77#d71 det]m9$ )\t reg>d to           
subp>agraph 7,b7 !re(4  7#e7 ,controll$ 
gr\ps ,= purposes ( ?is subsection1 all 
p]sons treat$ z a s+le employ] "u       
subsection 7b71 7c71 7m71 or 7o7 (      
section #dad %all be treat$ z "o        
employ]4  7#f7 ,coord9ation ,rules      
simil> to ! rules ( subp>agraphs 7,d7 & 
7,e7 ( subsection 7m77#d7 %all apply =  
purposes ( ?is subsection4  7#g7        
,au?ority to address abuse ,! ,secret>y 

%all h ! au?ority to address any abuses 
by employ]s "u ?is subsection1 includ+1 
b n limit$ to1 a r$uction 9 employee    
comp5sation or b5efits 9 conjunction ) !
 paym5t ( qualifi$ pr(it-%>+            
di/ributions4  4  7b7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to taxable ye>s beg9n+ aft] ! date ( ! 
enactm5t ( ?is ,act4