Stop Subsidizing Giant Mergers Act

This bill would change federal tax law so that certain mergers and acquisitions between large corporations no longer qualify for tax-free treatment as corporate reorganizations. The rule would apply when the two corporations together had average yearly gross receipts above $500 million over the prior three tax years, with that amount adjusted for inflation after 2026. Deals between companies that already control each other, companies under common control, or deals where one company meets the small-business gross receipts test would be excepted. A similar limit would apply when two or more corporations together transfer property to a corporation they control. The changes would apply to transfers made after the bill becomes law.

Full text and official record on Congress.gov

Sponsors

• Sheldon Whitehouse Democrat sponsor
• 1 cosponsors