Congress·In Committee·H.R. 6418
Employee Profit-Sharing Encouragement Act of 2025
Congress bill would deny tax deductions for executive pay unless companies share profits with workers
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Stalled
No legislative action in over 90 days.
Legislative Progress
House
Key Points
- This bill would stop certain businesses from writing off top executive pay on their taxes unless they share profits with employees.
- To qualify, the company would need a written plan that gives profit-sharing cash payments to employees (including part-time) who have worked there at least 1 year.
- The profit-sharing would generally need to total at least 5% of the company’s net income for the year, based on the company’s own books and records.
- The plan would also have to be set up so it doesn’t unfairly favor higher-paid workers; it must follow rules meant to treat employees more evenly.
- A company could skip the payouts for a year if it can strongly prove to the IRS that paying them would threaten the business’s survival.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Mixed Impacts(2)
Milestones
2 milestones2 actions
Dec 3, 2025
Referred to the House Committee on Ways and Means.
Dec 3, 2025
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
Employee Profit-Sharing Encouragement Act of 2025
Bill NumberHR 6418
Congress119th Congress
ChamberHouse of Representatives
Latest ActionReferred to the House Committee on Ways and Means.
Data Sources
Sponsor
Cosponsors
(1)D: 1
Analysis generated by AI. Always verify with official sources.