Bill Details
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This bill would remove the federal excise tax on corporate stock buybacks, which are when a company buys back its own shares. In plain terms, it would end the current tax on these repurchases for companies starting with tax years after December 31, 2024. Supporters would likely see this as lowering costs for companies that return money to shareholders, while critics may worry it removes a tax meant to discourage buybacks.
- It repeals the part of the tax code that creates the excise tax on stock repurchases.
- It also makes a related technical change to the tax code’s list of chapters to match the repeal.
- The change would apply to tax years beginning after December 31, 2024.
Official Summaries
Protecting American Savers and Retirees Act
This bill repeals the excise tax on the repurchase of corporate stock (commonly known as a stock buyback) enacted by the Inflation Reduction Act of 2022.
Under current law, a domestic corporation whose stock is traded on an established securities market (e.g., the New York Stock Exchange or NASDAQ) is required to pay an excise tax (that is not deductible) on the repurchase of its stock in the amount of 1% of the fair market value of such stock. (Some exceptions apply.)
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 684 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 684
To amend the Internal Revenue Code of 1986 to repeal the excise tax on
repurchase of corporate stock.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 23, 2025
Mr. Kustoff introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to repeal the excise tax on
repurchase of corporate stock.
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 ``Protecting American Savers and
Retirees Act''.
SEC. 2. REPEAL OF EXCISE TAX ON REPURCHASE OF CORPORATE STOCK.
(a) In General.--Chapter 37 of the Internal Revenue Code of 1986 is
repealed.
(b) Clerical Amendment.--The table of chapters for subtitle D is
amended by striking the item relating to chapter 37.
(c) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2024.
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