COACH Act

Senate Bill

S. 3155

119th Congress

COACH Act

In Committee

Introduced:Nov 7, 2025

Primary Sponsor

John Reed

D - RI

Cosponsors

7

Quick Stats

Policy Area

Taxation

Summary

The COACH Act would limit the amount of executive compensation that publicly traded corporations can deduct from their taxes, extending the existing $1 million deduction limit to all employees rather than just the top executives. This aims to discourage companies from paying extremely high salaries and bonuses to their leadership.

Latest Action

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S5216)

AI Summary

Plain-English explanation of this bill

The COACH Act would limit the amount of executive compensation that publicly traded corporations can deduct from their taxes, extending the existing $1 million deduction limit to all employees rather than just the top executives. This aims to discourage companies from paying extremely high salaries and bonuses to their leadership.

Last updated: 12/29/2025

Official Summary

Congressional Research Service summary

Stop Subsidizing Multimillion Dollar Corporate Bonuses Act This bill extends the $1 million limit on the deductibility of executive compensation to all employees of publicly traded corporations.

Key Points

Main provisions of the bill

Extends the existing $1 million limit on deductibility of executive compensation to all employees of publicly traded corporations, not just the top executives.
Aims to reduce the incentive for companies to pay very high salaries and bonuses to their leadership and highest-paid workers.
Could lead to lower overall compensation for the highest-paid corporate employees, as companies would no longer be able to fully deduct amounts over $1 million from their taxes.

How This Impacts Americans

Potential effects on citizens and communities

If enacted, the COACH Act would primarily impact the highest-paid corporate executives and employees of publicly traded companies, as their compensation over $1 million would no longer be tax-deductible for the company. This could put downward pressure on the salaries and bonuses of the most highly compensated corporate staff, though the overall impact on their total compensation would depend on how companies choose to adjust.

Policy Areas

Primary Policy Area

Taxation

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

3155, 119th Congress (2025). "COACH Act". Source: Voter's Right Platform. https://votersright.org/bills/118-s-3155