Page 109 - Tax Reform

PUBLIC LAW 115–97—DEC. 22, 2017 131 STAT. 2159

for the performance of medical or veterinary services
by such professional, or
‘‘(iv) to an individual who is not a highly com-
pensated employee as defined in section 414(q).
‘‘(D) BASE AMOUNT.—Rules similar to the rules of
280G(b)(3) shall apply for purposes of determining the base
amount.
‘‘(E) PROPERTY TRANSFERS; PRESENT VALUE.—Rules
similar to the rules of paragraphs (3) and (4) of section
280G(d) shall apply.
‘‘(6) COORDINATION WITH DEDUCTION LIMITATION.—Remu-
neration the deduction for which is not allowed by reason
of section 162(m) shall not be taken into account for purposes
of this section.
‘‘(d) REGULATIONS.—The Secretary shall prescribe such regula-
tions as may be necessary to prevent avoidance of the tax under
this section, including regulations to prevent avoidance of such
tax through the performance of services other than as an employee
or by providing compensation through a pass-through or other
entity to avoid such tax.’’.
(b) CLERICAL AMENDMENT.—The table of sections for subchapter
D of chapter 42 is amended by adding at the end the following 26 USC
new item: prec. 4958.
‘‘Sec. 4960. Tax on excess tax-exempt organization executive compensation.’’.
(c) EFFECTIVE DATE.—The amendments made by this section 26 USC 4960
shall apply to taxable years beginning after December 31, 2017. note.
SEC. 13603. TREATMENT OF QUALIFIED EQUITY GRANTS.
(a) IN GENERAL.—Section 83 is amended by adding at the 26 USC 83.
end the following new subsection:
‘‘(i) QUALIFIED EQUITY GRANTS.—
‘‘(1) IN GENERAL.—For purposes of this subtitle—
‘‘(A) TIMING OF INCLUSION.—If qualified stock is trans-
ferred to a qualified employee who makes an election with
respect to such stock under this subsection, subsection
(a) shall be applied by including the amount determined
under such subsection with respect to such stock in income
of the employee in the taxable year determined under
subparagraph (B) in lieu of the taxable year described
in subsection (a).
‘‘(B) TAXABLE YEAR DETERMINED.—The taxable year
determined under this subparagraph is the taxable year
of the employee which includes the earliest of—
‘‘(i) the first date such qualified stock becomes
transferable (including, solely for purposes of this
clause, becoming transferable to the employer),
‘‘(ii) the date the employee first becomes an
excluded employee,
‘‘(iii) the first date on which any stock of the cor-
poration which issued the qualified stock becomes
readily tradable on an established securities market
(as determined by the Secretary, but not including
any market unless such market is recognized as an
established securities market by the Secretary for pur-
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poses of a provision of this title other than this sub-
section),