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An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Internal Revenue Code of 1986

The main body of federal tax law in the United States.

Taxable year

The annual accounting period used for keeping records and reporting income and expenses for tax purposes, typically a calendar year for individuals and often a fiscal year for businesses.

Deduction (tax)

An amount that can be subtracted from a person's or company's gross income to reduce the amount of income subject to tax, thereby lowering the overall tax bill.

Executive Compensation

The pay and benefits provided to a company's top management and highly compensated employees, which can include salaries, bonuses, stock options, and other perks.

Profit-Sharing Distributions

Payments made to employees that are based on a company's profits or financial performance during a specific period.

Specified Employer

A term used in this bill to refer to larger businesses that meet certain gross receipts (total sales or revenue) thresholds, making them subject to the bill's requirements.

Highly Compensated Individual

An employee who meets specific criteria defined in tax law, usually based on their income level, indicating they are among the highest-paid employees in a company.