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131 STAT. 2159 PUBLIC LAW 115–97—DEC. 22, 2017 for the performance of medical or veterinary services by such professional, or ‘‘(iv) to an individual who is not a highly com- pensated employee as defined in section 414(q). ‘‘(D) BASE AMOUNT.—Rules similar to the rules of 280G(b)(3) shall apply for purposes of determining the base amount. ‘‘(E) PROPERTY TRANSFERS; PRESENT VALUE.—Rules similar to the rules of paragraphs (3) and (4) of section 280G(d) shall apply. ‘‘(6) COORDINATION WITH DEDUCTION LIMITATION.—Remu- neration the deduction for which is not allowed by reason of section 162(m) shall not be taken into account for purposes of this section. ‘‘(d) REGULATIONS.—The Secretary shall prescribe such regula- tions as may be necessary to prevent avoidance of the tax under this section, including regulations to prevent avoidance of such tax through the performance of services other than as an employee or by providing compensation through a pass-through or other entity to avoid such tax.’’. (b) CLERICAL AMENDMENT.—The table of sections for subchapter D of chapter 42 is amended by adding at the end the following new item: ‘‘Sec. 4960. Tax on excess tax-exempt organization executive compensation.’’. (c) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 2017. SEC. 13603. TREATMENT OF QUALIFIED EQUITY GRANTS. (a) IN GENERAL.—Section 83 is amended by adding at the end the following new subsection: ‘‘(i) QUALIFIED EQUITY GRANTS.— ‘‘(1) IN GENERAL.—For purposes of this subtitle— ‘‘(A) TIMING OF INCLUSION.—If qualified stock is trans- ferred to a qualified employee who makes an election with respect to such stock under this subsection, subsection (a) shall be applied by including the amount determined under such subsection with respect to such stock in income of the employee in the taxable year determined under subparagraph (B) in lieu of the taxable year described in subsection (a). ‘‘(B) TAXABLE YEAR DETERMINED.—The taxable year determined under this subparagraph is the taxable year of the employee which includes the earliest of— ‘‘(i) the first date such qualified stock becomes transferable (including, solely for purposes of this clause, becoming transferable to the employer), ‘‘(ii) the date the employee first becomes an excluded employee, ‘‘(iii) the first date on which any stock of the cor- poration which issued the qualified stock becomes readily tradable on an established securities market (as determined by the Secretary, but not including any market unless such market is recognized as an established securities market by the Secretary for pur- poses of a provision of this title other than this sub- section), 26 USC 83. 26 USC 4960 note. 26 USC prec. 4958. VerDate Sep 11 2014 10:09 Oct 18, 2018 Jkt 079139 PO 00097 Frm 00107 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL097.115 PUBL097 dkrause on DSKBC28HB2PROD with PUBLAWS