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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4796 Introduced in Senate (IS)]
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119th CONGRESS
2d Session
S. 4796
To amend the Internal Revenue Code of 1986 to increase the rate of the
excise tax on the repurchase of corporate stock, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 16, 2026
Mr. Schumer (for himself, Mr. Wyden, Ms. Warren, Mr. Reed, Mr. Van
Hollen, Mr. Markey, and Mr. Whitehouse) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to increase the rate of the
excise tax on the repurchase of corporate stock, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Stock Buyback Accountability Act of
2026''.
SEC. 2. MODIFICATIONS TO TAX ON REPURCHASE OF CORPORATE STOCK.
(a) Increase in Rate of Tax.--Section 4501(a) of the Internal
Revenue Code of 1986 is amended by striking ``1 percent'' and inserting
``4 percent''.
(b) Modification of Adjustments.--Section 4501(c)(3) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``The amount'' and inserting the following:
``(A) In general.--The amount'', and
(2) by adding at the end the following new subparagraph:
``(B) Exception for stock issued to certain
persons.--Subparagraph (A) shall not apply to so much
of the fair market value of any stock issued or
provided to--
``(i) an employee who is a covered employee
(within the meaning of section 162(m)(3)) or a
specified covered employee (within the meaning
of section 162(m)(7)(C)), or
``(ii) a person (other than an employee
described in clause (i)) who receives
remuneration (within the meaning of section
162(m)(4)) during any taxable year of the
covered corporation beginning after December
31, 2025, in excess of $1,000,000 for services
performed by such person for such covered
corporation or any specified affiliate of such
covered corporation.''.
(c) Effective Date.--
(1) Rate.--
(A) In general.--The amendment made by subsection
(a) section shall apply to repurchases (within the
meaning of section 4501(c) of the Internal Revenue Code
of 1986) of stock after the date of the enactment of
this Act.
(B) Special rule.--For purposes of applying section
4501(c)(3) of the Internal Revenue Code to any taxable
year which includes the date of the enactment of this
Act, the amount of the reduction determined under such
section for such taxable year shall be applied--
(i) by reducing stock repurchased on or
before such date of enactment in the amount
which bears the same ratio to the total amount
of the reduction so determined for such taxable
year as--
(I) the number of days in the
taxable year on or before such date of
enactment, bears to
(II) the total number of days in
such taxable year, and
(ii) by reducing stock repurchased after
such date of the enactment by the excess (if
any) of the total amount of the reduction so
determined for such taxable year over the
amount of the reduction determined under clause
(i).
(2) Adjustments.--The amendments made by subsection (b)
shall apply to stock issued or provided in taxable years ending
more than 90 days after the date of the enactment of this Act.
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