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Tax Cuts and Jobs Act passes in Senate

Jaclyn Jaeger | December 4, 2017

The U.S. Senate over the weekend passed its version of the Tax Cuts and Jobs Act, whose executive compensation provisions align closely to the corresponding bill passed by the House last month.

On Dec. 2, the Senate passed its version of the Tax Cuts and Jobs Act by a vote of 51 – 49.

Like provisions in the proposed House bill, both the current House and Senate bills keep intact limitations on deductible compensation paid to certain public company executive officers under Section 162(m) by:

  • Repealing exceptions for qualified performance-based compensation and commissions, rendering all compensation paid to a covered employee of more than $1 million per year nondeductible;
  • Expanding the current definition of “covered employees” to include the principal financial officer, and to provide for continued application for all years in which a covered employee receives any... To get the full story, subscribe now.