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Increased Company Profit-Sharing for Employees

This bill aims to encourage companies to share profits with their employees. Companies that do not distribute profit-sharing to employees may lose the ability to deduct executive compensation from their taxes. This could potentially increase employee income and promote a fairer distribution of profits.
Key points
Companies that do not share profits with employees may lose tax deductions for executive salaries.
Employees, including part-time staff employed for at least one year, may receive cash profit distributions.
Profit distributions must be at least 5% of the company's net income for the company to qualify for tax deductions.
There is an exception for companies that can prove profit distribution would jeopardize their continued operation.
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Expired
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Additional Information
Print number: 118_HR_2628
Sponsor: Rep. Watson Coleman, Bonnie [D-NJ-12]
Process start date: 2023-04-13
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Employee Profit-Sharing Encouragement Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_2628.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2023-04-13.

What are the main provisions?

Key points include:

  • Companies that do not share profits with employees may lose tax deductions for executive salaries.
  • Employees, including part-time staff employed for at least one year, may receive cash profit distributions.
  • Profit distributions must be at least 5% of the company's net income for the company to qualify for tax deductions.
  • There is an exception for companies that can prove profit distribution would jeopardize their continued operation.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Watson Coleman, Bonnie [D-NJ-12].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Taxes Labor Economy