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Ending Tax Breaks for Corporations on Massive Malicious Defamation Penalties.

This law changes tax rules to prevent very large corporations (over $10 billion in revenue) from deducting massive penalties and legal costs related to defamation lawsuits. If a corporation pays over $500 million in a case proving actual malice, they cannot treat that amount as a business expense for tax purposes. This aims to increase the financial accountability of corporations for intentionally spreading false information.
Key points
Very large corporations (over $10B revenue) lose the ability to deduct defamation penalties from their taxes.
This applies only to cases proving malicious intent where the total penalty or settlement exceeds $500 million.
Corporations also cannot deduct associated legal fees and related insurance premium costs for these specific suits.
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Expired
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Additional Information
Print number: 118_S_2550
Sponsor: Sen. Whitehouse, Sheldon [D-RI]
Process start date: 2023-07-26
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Denying Expenditures for False Accusations with Malicious Effect (DEFAME) Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_2550.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-07-26.

What are the main provisions?

Key points include:

  • Very large corporations (over $10B revenue) lose the ability to deduct defamation penalties from their taxes.
  • This applies only to cases proving malicious intent where the total penalty or settlement exceeds $500 million.
  • Corporations also cannot deduct associated legal fees and related insurance premium costs for these specific suits.
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 Sen. Whitehouse, Sheldon [D-RI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Courts and Law