Details of Public Law 117-2, section 9708 , Expansion of Limitation on Excessive Employee Remuneration

For taxable years beginning on or after 12/31/2026, the section expands the $1 million limit on the deduction for compensation paid to a covered employee to also include the five highest compensated employees, other than a corporation’s:

Principal executive officer and principal financial officer, or an individual acting in such a capacity.

Highest three compensated officers, as required to be reported under the Securities Exchange Act of 1934.

22/23 23/24 24/25 25/26 26/27 N/A N/A ($80,000) ($6,000,000) ($29,000,000)