Expansion of the million dollar compensation deduction limitation on the horizon for publicly held corporations

The American Rescue Plan Act (ARPA) contains amendments to the federal tax code that generally limits the ability of publicly-held corporations to deduct compensation amounts in excess of $1 million in any year with respect to certain executives of the corporation. The article, first published in the Benefits Law Journal, covers the following background and analysis:

• Rules in effect prior to ARPA
• Rules in effect post-ARPA
• Corporate challenges due to expansion of the covered employee group
• Key issues to be determined
• Other provisions in the Build Back Better Bill

This article was originally published by the Benefits Law Journal.