Employee Profit-Sharing Encouragement Act of 2021
Official title: To amend the Internal Revenue Code of 1986 to deny the deduction for executive compensation unless the employer maintains profit-sharing distributions for employees.
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Referred to the House Committee on Ways and Means.
Employee Profit-Sharing Encouragement Act of 2021
This bill denies the business tax deduction for the remuneration of highly-compensated corporate employees unless the corporation has average annual gross receipts of less than $25 million and maintains a plan for making qualified profit-sharing distributions to its employees. The bill defines qualified profit-sharing distributions as cash distributions under a written employer plan that gives employees who have been employed for at least one year a right to profit-sharing distributions and bases the amount of such distributions on the measure of the receipts, profit, revenues, or earnings of the employer.
- Introduced in House Formatted Text PDF Formatted XML
Cite this page
U.S. Congress. (2026). H.R. 1665: Employee Profit-Sharing Encouragement Act of 2021. 117th Congress. Open America. https://openamerica.io/bill/117-HR-1665/
"H.R. 1665: Employee Profit-Sharing Encouragement Act of 2021." 117th Congress, 2026, Open America, https://openamerica.io/bill/117-HR-1665/.
H.R. 1665, 117th Cong. (2026), https://openamerica.io/bill/117-HR-1665/.
[H.R. 1665: Employee Profit-Sharing Encouragement Act of 2021](https://openamerica.io/bill/117-HR-1665/)