26 U.S.C. § 162
Trade or business expenses
No deduction shall be allowed under subsection (a) for any contribution or gift which would be allowable as a deduction under section 170 were it not for the percentage limitations, the dollar limitations, or the requirements as to the time of payment, set forth in such section.
No deduction shall be allowed under subsection (a) for any payment made, directly or indirectly, to an official or employee of any government, or of any agency or instrumentality of any government, if the payment constitutes an illegal bribe or kickback or, if the payment is to an official or employee of a foreign government, the payment is unlawful under the Foreign Corrupt Practices Act of 1977. The burden of proof in respect of the issue, for the purposes of this paragraph, as to whether a payment constitutes an illegal bribe or kickback (or is unlawful under the Foreign Corrupt Practices Act of 1977) shall be upon the Secretary to the same extent as he bears the burden of proof under section 7454 (concerning the burden of proof when the issue relates to fraud).
No deduction shall be allowed under subsection (a) for any payment (other than a payment described in paragraph (1)) made, directly or indirectly, to any person, if the payment constitutes an illegal bribe, illegal kickback, or other illegal payment under any law of the United States, or under any law of a State (but only if such State law is generally enforced), which subjects the payor to a criminal penalty or the loss of license or privilege to engage in a trade or business. For purposes of this paragraph, a kickback includes a payment in consideration of the referral of a client, patient, or customer. The burden of proof in respect of the issue, for purposes of this paragraph, as to whether a payment constitutes an illegal bribe, illegal kickback, or other illegal payment shall be upon the Secretary to the same extent as he bears the burden of proof under section 7454 (concerning the burden of proof when the issue relates to fraud).
No deduction shall be allowed under subsection (a) for any kickback, rebate, or bribe made by any provider of services, supplier, physician, or other person who furnishes items or services for which payment is or may be made under the Social Security Act, or in whole or in part out of Federal funds under a State plan approved under such Act, if such kickback, rebate, or bribe is made in connection with the furnishing of such items or services or the making or receipt of such payments. For purposes of this paragraph, a kickback includes a payment in consideration of the referral of a client, patient, or customer.
For purposes of this subtitle, whenever the amount of capital contributions evidenced by a share of stock issued pursuant to section 303(c) of the Federal National Mortgage Association Charter Act (12 U.S.C., sec. 1718) exceeds the fair market value of the stock as of the issue date of such stock, the initial holder of the stock shall treat the excess as ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade or business.
No deduction shall be allowed under subsection (a) for the portion of dues or other similar amounts paid by the taxpayer to an organization which is exempt from tax under this subtitle which the organization notifies the taxpayer under section 6033(e)(1)(A)(ii) is allocable to expenditures to which paragraph (1) applies.
The term “influencing legislation” means any attempt to influence any legislation through communication with any member or employee of a legislative body, or with any government official or employee who may participate in the formulation of legislation.
The term “legislation” has the meaning given such term by section 4911(e)(2).
In the case of any taxpayer engaged in the trade or business of conducting activities described in paragraph (1), paragraph (1) shall not apply to expenditures of the taxpayer in conducting such activities directly on behalf of another person (but shall apply to payments by such other person to the taxpayer for conducting such activities).
Paragraph (1) shall not apply to any in-house expenditures for any taxable year if such expenditures do not exceed $2,000. In determining whether a taxpayer exceeds the $2,000 limit under this clause, there shall not be taken into account overhead costs otherwise allocable to activities described in paragraphs (1)(A) and (D).
Any amount paid or incurred for research for, or preparation, planning, or coordination of, any activity described in paragraph (1) shall be treated as paid or incurred in connection with such activity.
For reporting requirements and alternative taxes related to this subsection, see section 6033(e).
Except as provided in the following paragraphs of this subsection, no deduction otherwise allowable shall be allowed under this chapter for any amount paid or incurred (whether by suit, agreement, or otherwise) to, or at the direction of, a government or governmental entity in relation to the violation of any law or the investigation or inquiry by such government or entity into the potential violation of any law.
Subparagraph (A) shall not apply to any amount paid or incurred as reimbursement to the government or entity for the costs of any investigation or litigation.
Paragraph (1) shall not apply to any amount paid or incurred by reason of any order of a court in a suit in which no government or governmental entity is a party.
Paragraph (1) shall not apply to any amount paid or incurred as taxes due.
An election under this subsection for any taxable year shall be made at such time and in such manner as the Secretary shall by regulations prescribe.
This subsection shall not apply to any legislator whose place of residence within the legislative district which he represents is 50 or fewer miles from the capitol building of the State.
No deduction shall be allowed under subsection (a) for any expenses of an advertisement carried by a foreign broadcast undertaking and directed primarily to a market in the United States. This paragraph shall apply only to foreign broadcast undertakings located in a country which denies a similar deduction for the cost of advertising directed primarily to a market in the foreign country when placed with a United States broadcast undertaking.
For purposes of paragraph (1), the term “broadcast undertaking” includes (but is not limited to) radio and television stations.
Except as provided in paragraph (2), no deduction otherwise allowable shall be allowed under this chapter for any amount paid or incurred by a corporation in connection with the reacquisition of its stock or of the stock of any related person (as defined in section 465(b)(3)(C)).
Any amount paid or incurred in connection with the redemption of any stock in a regulated investment company which issues only stock which is redeemable upon the demand of the shareholder.
No deduction shall be allowed under paragraph (1) to the extent that the amount of such deduction exceeds the taxpayer’s earned income (within the meaning of section 401(c)) derived by the taxpayer from the trade or business with respect to which the plan providing the medical care coverage is established.
In the case of a qualified long-term care insurance contract (as defined in section 7702B(b)), only eligible long-term care premiums (as defined in section 213(d)(10)) shall be taken into account under paragraph (1).
Any amount paid by a taxpayer for insurance to which paragraph (1) applies shall not be taken into account in computing the amount allowable to the taxpayer as a deduction under section 213(a).
The deduction allowable by reason of this subsection shall not be taken into account in determining an individual’s net earnings from self-employment (within the meaning of section 1402(a)) for purposes of chapter 2 for taxable years beginning before
In the case of any publicly held corporation, no deduction shall be allowed under this chapter for applicable employee remuneration with respect to any covered employee to the extent that the amount of such remuneration for the taxable year with respect to such employee exceeds $1,000,000.
Except as otherwise provided in this paragraph, the term “applicable employee remuneration” means, with respect to any covered employee for any taxable year, the aggregate amount allowable as a deduction under this chapter for such taxable year (determined without regard to this subsection) for remuneration for services performed by such employee (whether or not during the taxable year).
The term “applicable employee remuneration” shall not include any remuneration payable under a written binding contract which was in effect on
The dollar limitation contained in paragraph (1) shall be reduced (but not below zero) by the amount (if any) which would have been included in the applicable employee remuneration of the covered employee for the taxable year but for being disallowed under section 280G.
The dollar limitation contained in paragraph (1) with respect to any covered employee shall be reduced (but not below zero) by the amount of any payment (with respect to such employee) of the tax imposed by section 4985 directly or indirectly by the expatriated corporation (as defined in such section) or by any member of the expanded affiliated group (as defined in such section) which includes such corporation.
Remuneration shall not fail to be applicable employee remuneration merely because it is includible in the income of, or paid to, a person other than the covered employee, including after the death of the covered employee.
Except as provided in clause (ii), the term “applicable employer” means any employer from whom 1 or more troubled assets are acquired under a program established by the Secretary under section 101(a) of the Emergency Economic Stabilization Act of 2008 if the aggregate amount of the assets so acquired for all taxable years exceeds $300,000,000.
If the only sales of troubled assets by an employer under the program described in clause (i) are through 1 or more direct purchases (within the meaning of section 113(c) of the Emergency Economic Stabilization Act of 2008), such assets shall not be taken into account under clause (i) in determining whether the employer is an applicable employer for purposes of this paragraph.
Two or more persons who are treated as a single employer under subsection (b) or (c) of section 414 shall be treated as a single employer, except that in applying section 1563(a) for purposes of either such subsection, paragraphs (2) and (3) thereof shall be disregarded.
If an employee is a covered executive with respect to an applicable employer for any applicable taxable year, such employee shall be treated as a covered executive with respect to such employer for all subsequent applicable taxable years and for all subsequent taxable years in which deferred deduction executive remuneration with respect to services performed in all such applicable taxable years would (but for this paragraph) be deductible.
For purposes of this paragraph, the term “executive remuneration” means the applicable employee remuneration of the covered executive, as determined under paragraph (4) without regard to subparagraph (B) thereof. Such term shall not include any deferred deduction executive remuneration with respect to services performed in a prior applicable taxable year.
For purposes of this paragraph, the term “deferred deduction executive remuneration” means remuneration which would be executive remuneration for services performed in an applicable taxable year but for the fact that the deduction under this chapter (determined without regard to this paragraph) for such remuneration is allowable in a subsequent taxable year.
Rules similar to the rules of subparagraphs (D) and (E) of paragraph (4) shall apply for purposes of this paragraph.
The Secretary may prescribe such guidance, rules, or regulations as are necessary to carry out the purposes of this paragraph and the Emergency Economic Stabilization Act of 2008, including the extent to which this paragraph applies in the case of any acquisition, merger, or reorganization of an applicable employer.
For purposes of this paragraph, the term “disqualified taxable year” means, with respect to any employer, any taxable year for which such employer is a covered health insurance provider.
Two or more persons who are treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer, except that in applying section 1563(a) for purposes of any such subsection, paragraphs (2) and (3) thereof shall be disregarded.
For purposes of this paragraph, the term “applicable individual remuneration” means, with respect to any applicable individual for any disqualified taxable year, the aggregate amount allowable as a deduction under this chapter for such taxable year (determined without regard to this subsection) for remuneration (as defined in paragraph (4) without regard to subparagraph (B) thereof) for services performed by such individual (whether or not during the taxable year). Such term shall not include any deferred deduction remuneration with respect to services performed during the disqualified taxable year.
For purposes of this paragraph, the term “deferred deduction remuneration” means remuneration which would be applicable individual remuneration for services performed in a disqualified taxable year but for the fact that the deduction under this chapter (determined without regard to this paragraph) for such remuneration is allowable in a subsequent taxable year.
Rules similar to the rules of subparagraphs (D) and (E) of paragraph (4) shall apply for purposes of this paragraph.
The Secretary may prescribe such guidance, rules, or regulations as are necessary to carry out the purposes of this paragraph.
For purposes of this paragraph, the term “controlled group” means any group treated as a single employer under subsection (b), (c), (m), or (o) of section 414.
Paragraph (1) shall not apply to any group health plan which is not required under the laws of the State of New York (determined without regard to this subsection or other provisions of Federal law) to reimburse at the rates provided in paragraph (1).
For purposes of this subsection, the term “group health plan” means a plan of, or contributed to by, an employer or employee organization (including a self-insured plan) to provide health care (directly or otherwise) to any employee, any former employee, the employer, or any other individual associated or formerly associated with the employer in a business relationship, or any member of their family.
Notwithstanding paragraph (1)(A), if the expenses incurred by an employee for the use of a vehicle in performing services described in paragraph (1) exceed the qualified reimbursements for such expenses, such excess shall be taken into account in computing the miscellaneous itemized deductions of the employee under section 67.
For purposes of subsection (a)(2), in the case of an individual who performs services as a member of a reserve component of the Armed Forces of the United States at any time during the taxable year, such individual shall be deemed to be away from home in the pursuit of a trade or business for any period during which such individual is away from home in connection with such service.
No deduction shall be allowed for the applicable percentage of any FDIC premium paid or incurred by the taxpayer.
Paragraph (1) shall not apply to any taxpayer for any taxable year if the total consolidated assets of such taxpayer (determined as of the close of such taxable year) do not exceed $10,000,000,000.
For purposes of this subsection, the term “FDIC premium” means any assessment imposed under section 7(b) of the Federal Deposit Insurance Act (12 U.S.C. 1817(b)).
For purposes of this subsection, the term “total consolidated assets” has the meaning given such term under section 165 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (12 U.S.C. 5365).
Members of an expanded affiliated group shall be treated as a single taxpayer for purposes of applying this subsection.
A partnership or any other entity (other than a corporation) shall be treated as a member of an expanded affiliated group if such entity is controlled (within the meaning of section 954(d)(3)) by members of such group (including any entity treated as a member of such group by reason of this clause).
The Foreign Corrupt Practices Act of 1977, referred to in subsec. (c)(1), is title I of Pub. L. 95–213,
The Social Security Act, referred to in subsec. (c)(3), is act Aug. 14, 1935, ch. 531, 49 Stat. 620, which is classified generally to chapter 7 (§ 301 et seq.) of Title 42, The Public Health and Welfare. For complete classification of this Act to the Code, see section 1305 of Title 42 and Tables.
Section 4 of the Clayton Act, referred to in subsec. (g)(1), is classified to section 15 of Title 15, Commerce and Trade.
The Securities Exchange Act of 1934, referred to in subsec. (m)(3)(B), (5)(D)(ii)(I), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see section 78a of Title 15 and Tables.
The Emergency Economic Stabilization Act of 2008, referred to in subsec. (m)(5), is div. A of Pub. L. 110–343,
2025—Subsec. (m)(7). Pub. L. 119–21 added par. (7).
2021—Subsec. (m)(3)(C), (D). Pub. L. 117–2 added subpar. (C), redesignated former subpar. (C) as (D), and, in subpar. (D), substituted “employee described in subparagraph (A) or (B)” for “employee”.
2017—Subsec. (a). Pub. L. 115–97, § 13311(a), struck out “in excess of $3,000” after “income tax purposes” in concluding provisions.
Subsec. (e)(2) to (8). Pub. L. 115–97, § 13308(a), redesignated pars. (3) to (6) and (8) as (2) to (6), respectively, and struck out former par. (2) relating to exception for local legislation and par. (7) relating to special rule for Indian tribal governments.
Subsec. (f). Pub. L. 115–97, § 13306(a)(1), amended subsec. (f) generally. Prior to amendment, text read as follows: “No deduction shall be allowed under subsection (a) for any fine or similar penalty paid to a government for the violation of any law.”
Subsec. (m)(2). Pub. L. 115–97, § 13601(c)(1), amended par. (2) generally. Prior to amendment, text read as follows: “For purposes of this subsection, the term ‘publicly held corporation’ means any corporation issuing any class of common equity securities required to be registered under section 12 of the Securities Exchange Act of 1934.”
Subsec. (m)(3). Pub. L. 115–97, § 13601(c)(2), inserted concluding provisions.
Subsec. (m)(3)(A). Pub. L. 115–97, § 13601(b)(1), substituted “such employee is the principal executive officer or principal financial officer of the taxpayer at any time during the taxable year, or was” for “as of the close of the taxable year, such employee is the chief executive officer of the taxpayer or is”.
Subsec. (m)(3)(B). Pub. L. 115–97, § 13601(b)(2), substituted “3” for “4” and “(other than any individual described in subparagraph (A))” for “(other than the chief executive officer)”.
Subsec. (m)(3)(C). Pub. L. 115–97, § 13601(b)(3), added subpar. (C).
Subsec. (m)(4)(B) to (E). Pub. L. 115–97, § 13601(a)(1), redesignated subpars. (D) to (G) as (B) to (E), respectively, and struck out former subpar. (B) relating to an exemption to the term “applicable employee remuneration” and former subpar. (C) relating to the term “applicable employee remuneration”.
Subsec. (m)(4)(F). Pub. L. 115–97, § 13601(a)(1), (d), added subpar. (F) and redesignated former subpar. (F) as (D).
Subsec. (m)(4)(G). Pub. L. 115–97, § 13601(a)(1), redesignated subpar. (G) as (E).
Subsec. (m)(5)(E). Pub. L. 115–97, § 13601(a)(2)(A), substituted “subparagraph (B)” for “subparagraphs (B), (C), and (D)”.
Subsec. (m)(5)(G). Pub. L. 115–97, § 13601(a)(2)(B), substituted “(D) and (E)” for “(F) and (G)”.
Subsec. (m)(6)(D). Pub. L. 115–97, § 13601(a)(2)(A), substituted “subparagraph (B)” for “subparagraphs (B), (C), and (D)”.
Subsec. (m)(6)(G). Pub. L. 115–97, § 13601(a)(2)(B), substituted “(D) and (E)” for “(F) and (G)”.
Subsec. (o)(3). Pub. L. 115–97, § 11002(d)(6), substituted “adjusted by increasing any such amount under the 1991 agreement by an amount equal to—” and subpars. (A) and (B) for “adjusted for changes in the Consumer Price Index (as defined in section 1(f)(5)) since 1991.”
Subsec. (q). Pub. L. 115–97, § 13307(a), added subsec. (q). Former subsec. (q) redesignated (r), then (s).
Subsec. (r). Pub. L. 115–97, § 13531(a), added subsec. (r).
Subsec. (s). Pub. L. 115–97, §§ 13307(a), 13531(a), redesignated subsec. (q) as (r), then (s).
2014—Subsec. (g). Pub. L. 113–295, § 221(a)(23), struck out concluding provisions which read as follows: “The preceding sentence shall not apply with respect to any conviction or plea before
Subsec. (h)(4). Pub. L. 113–295, § 221(a)(24), substituted “This subsection” for “For taxable years beginning after
2011—Subsec. (a). Pub. L. 112–10 struck out last sentence in concluding provisions which read as follows: “For purposes of paragraph (1), the amount of a free choice voucher provided under section 10108 of the Patient Protection and Affordable Care Act shall be treated as an amount for compensation for personal services actually rendered.”
2010—Subsec. (a). Pub. L. 111–148, § 10108(g)(1), inserted at end of concluding provisions “For purposes of paragraph (1), the amount of a free choice voucher provided under section 10108 of the Patient Protection and Affordable Care Act shall be treated as an amount for compensation for personal services actually rendered.”
Subsec. (l)(1). Pub. L. 111–152, § 1004(d)(2), amended par. (1) generally. Prior to amendment, par. (1) authorized a deduction in an amount equal to the applicable percentage of the amount paid during the taxable year for insurance which constitutes medical care for the taxpayer, his spouse, and dependents.
Subsec. (l)(2)(B). Pub. L. 111–152, § 1004(d)(3), inserted “, or any dependent, or individual described in subparagraph (D) of paragraph (1) with respect to,” after “spouse of” in introductory provisions.
Subsec. (l)(4). Pub. L. 111–240 inserted “for taxable years beginning before
Subsec. (m)(6). Pub. L. 111–148, § 9014(a), added par. (6).
2008—Subsec. (m)(5). Pub. L. 110–343 added par. (5).
2004—Subsec. (m)(4)(G). Pub. L. 108–357, § 802(b)(2), added subpar. (G).
Subsec. (o). Pub. L. 108–357, § 318(b), struck out “reimbursed” before “expenses” in heading.
Subsec. (o)(2), (3). Pub. L. 108–357, § 318(a), added par. (2) and redesignated former par. (2) as (3).
2003—Subsecs. (p), (q). Pub. L. 108–121 added subsec. (p) and redesignated former subsec. (p) as (q).
1998—Subsec. (a). Pub. L. 105–206, in last sentence, substituted “investigate or prosecute, or provide support services for the investigation or prosecution of, a Federal crime.” for “investigate, or provide support services for the investigation of, a Federal crime.”
Subsec. (l)(1)(B). Pub. L. 105–277 amended table in subpar. (B) generally. Prior to amendment, table read as follows:
“For taxable years beginning in calendar year— | The applicable percentage is— |
|---|---|
1997 | 40 |
1998 and 1999 | 45 |
2000 and 2001 | 50 |
2002 | 60 |
2003 through 2005 | 80 |
2006 | 90 |
2007 and thereafter | 100.” |
1997—Subsec. (a). Pub. L. 105–34, § 1204(a), inserted at end of concluding provisions “The preceding sentence shall not apply to any Federal employee during any period for which such employee is certified by the Attorney General (or the designee thereof) as traveling on behalf of the United States in temporary duty status to investigate, or provide support services for the investigation of, a Federal crime.”
Subsec. (l)(1)(B). Pub. L. 105–34, § 934(a), amended table generally. Prior to amendment, table read as follows:
“For taxable years beginning in calendar year— | The applicable percentage is— |
|---|---|
1997 | 40 percent |
1998 through 2002 | 45 percent |
2003 | 50 percent |
2004 | 60 percent |
2005 | 70 percent |
2006 or thereafter | 80 percent.” |
Subsec. (l)(2)(B). Pub. L. 105–34, § 1602(c), inserted “The preceding sentence shall be applied separately with respect to—” at end and added cls. (i) and (ii).
Subsecs. (o), (p). Pub. L. 105–34, § 1203(a), added subsec. (o) and redesignated former subsec. (o) as (p).
1996—Subsec. (k). Pub. L. 104–188, § 1704(p)(3), substituted “reaquisition” for “redemption” in heading.
Subsec. (k)(1). Pub. L. 104–188, § 1704(p)(1), substituted “the reacquisition of its stock or of the stock of any related person (as defined in section 465(b)(3)(C))” for “the redemption of its stock”.
Subsec. (k)(2)(A). Pub. L. 104–188, § 1704(p)(2), struck out “or” at end of cl. (i), added cl. (ii), and redesignated former cl. (ii) as (iii).
Subsec. (l)(1). Pub. L. 104–191, § 311(a), amended par. (1) generally. Prior to amendment, par. (1) read as follows:
“(1)
Subsec. (l)(2)(C). Pub. L. 104–191, § 322(b)(2)(B), added subpar. (C).
1995—Subsec. (l)(1). Pub. L. 104–7, § 1(b), substituted “30 percent” for “25 percent”.
Subsec. (l)(6). Pub. L. 104–7, § 1(a), struck out par. (6) “Termination” which read as follows: “This subsection shall not apply to any taxable year beginning after
1993—Subsec. (e). Pub. L. 103–66, § 13222(a), amended heading and text generally. Prior to amendment, text consisted of pars. (1) and (2) relating to deduction of ordinary and necessary expenses paid or incurred in connection with certain activities relating to congressional, State, and local legislation.
Subsec. (l)(2)(B). Pub. L. 103–66, § 13174(b)(1), amended heading and text of subpar. (B) generally. Prior to amendment, text read as follows: “Paragraph (1) shall not apply to any taxpayer who is eligible to participate in any subsidized health plan maintained by any employer of the taxpayer or of the spouse of the taxpayer.”
Subsec. (l)(3). Pub. L. 103–66, § 13131(d)(2), amended heading and text of par. (3) generally. Prior to amendment, text read as follows:
“(A)
“(B)
Subsec. (l)(6). Pub. L. 103–66, § 13174(a)(1), substituted “
Subsec. (m). Pub. L. 103–66, § 13211(a), added subsec. (m). Former subsec. (m) redesignated (n).
Subsec. (n). Pub. L. 103–66, § 13442(a), added subsec. (n). Former subsec. (n) redesignated (o).
Pub. L. 103–66, § 13211(a), redesignated subsec. (m) as (n).
Subsec. (o). Pub. L. 103–66, § 13442(a), redesignated subsec. (n) as (o).
1992—Subsec. (a). Pub. L. 102–486 inserted at end “For purposes of paragraph (2), the taxpayer shall not be treated as being temporarily away from home during any period of employment if such period exceeds 1 year.”
1991—Subsec. (l)(6). Pub. L. 102–227 substituted “
1990—Subsec. (l)(3). Pub. L. 101–508, § 11111(d)(2), substituted heading for one which read: “Coordination with medical deduction” and amended text generally. Prior to amendment, text read as follows: “Any amount paid by a taxpayer for insurance to which paragraph (1) applies shall not be taken into account in computing the amount allowable to the taxpayer as a deduction under section 213(a).”
Subsec. (l)(6). Pub. L. 101–508, § 11410(a), substituted “
1989—Subsec. (i). Pub. L. 101–239, § 6202(b)(3)(A), struck out subsec. (i) which read as follows:
“(1)
“(2)
Subsec. (k)(2)(B)(iv). Pub. L. 101–239, § 7862(c)(3)(A), amended cl. (iv) as it existed prior to repeal of subsec. (k) by Pub. L. 100–647, by substituting “entitlement” for “eligibility” in heading and inserting “which does not contain any exclusion or limitation with respect to any preexisting condition of such beneficiary” after “or otherwise)” in subclause (I).
Subsec. (l)(2). Pub. L. 101–140 redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: “
Subsec. (l)(5). Pub. L. 101–239, § 7107(b), added par. (5). Former par. (5) redesignated (6).
Pub. L. 101–239, § 7107(a)(1), substituted “
Subsec. (l)(6). Pub. L. 101–239, § 7107(b), redesignated former par. (5) as (6).
1988—Subsec. (i)(2), (3). Pub. L. 100–647, § 3011(b)(2), redesignated par. (3) as (2) and struck out former par. (2) which required plans to provide continuation coverage to certain individuals.
Subsec. (k). Pub. L. 100–647, § 3011(b)(3), redesignated subsec. (l), relating to stock redemption expenses, as (k) and struck out former subsec. (k) which related to continuation coverage requirements of group health plans.
Subsec. (k)(5)(B). Pub. L. 100–647, § 1018(t)(7)(B), made amendment identical to Pub. L. 99–509, § 9307(c)(2)(B), which amended directory language of Pub. L. 99–514, § 1895(d)(5)(A), by substituting “section 162(k)(5)” for “section 162(k)(2)”. See 1986 Amendment note below.
Subsec. (l). Pub. L. 100–647, § 3011(b)(3)(A), (B), redesignated subsec. (m), relating to special rules for health insurance costs of self-employed individuals, as (l). Former subsec. (l), relating to stock redemption expenses, redesignated (k).
Subsec. (m). Pub. L. 100–647, § 3011(b)(3)(B), (C), redesignated subsec. (n), relating to cross references, as (m). Former subsec. (m), relating to special rules for health insurance costs of self-employed individuals, redesignated (l).
Pub. L. 100–647, § 1011B(b)(2), redesignated subsec. (m), relating to cross references, as (n).
Subsec. (m)(2)(A). Pub. L. 100–647, § 1011B(b)(3), inserted “derived by the taxpayer from the trade or business with respect to which the plan providing the medical care coverage is established” after “401(c))”.
Subsec. (m)(4), (5). Pub. L. 100–647, § 1011B(b)(1), added par. (4) and redesignated former par. (4) as (5).
Subsec. (n). Pub. L. 100–647, § 3011(b)(3)(C), redesignated subsec. (n) as (m).
Pub. L. 100–647, § 1011B(b)(2), redesignated subsec. (m), relating to cross references, as (n).
1986—Subsec. (i)(1). Pub. L. 99–272, § 10001(d), substituted “Coverage relating to end stage renal disease” for “General rule” in heading.
Subsec. (i)(2), (3). Pub. L. 99–272, § 10001(a), added par. (2) and redesignated former par. (2) as (3).
Subsec. (k). Pub. L. 99–272, § 10001(c), added subsec. (k). Former subsec. (k) redesignated (l).
Subsec. (k)(2)(A). Pub. L. 99–514, § 1895(d)(1)(A), inserted “If coverage under the plan is modified for any group of similarly situated beneficiaries, the coverage shall also be modified in the same manner for all individuals who are qualified beneficiaries under the plan pursuant to this subsection in connection with such group.”
Subsec. (k)(2)(B)(i). Pub. L. 99–514, § 1895(d)(2)(A), substituted “Maximum required period” for “Maximum period” in heading and amended text generally. Prior to amendment, text read as follows: “In the case of—
“(I) a qualifying event described in paragraph (3)(B) (relating to terminations and reduced hours), the date which is 18 months after the date of the qualifying event, and
“(II) any qualifying event not described in subclause (I), the date which is 36 months after the date of the qualifying event.”
Subsec. (k)(2)(B)(i)(II). Pub. L. 99–509, § 9501(b)(1)(A)(i), inserted “(other than a qualifying event described in paragraph (3)(F))”.
Subsec. (k)(2)(B)(i)(III), (IV). Pub. L. 99–509, § 9501(b)(1)(A)(ii)–(iv), added subcl. (III), redesignated former subcl. (III) as (IV), and inserted “or (3)(F)”.
Subsec. (k)(2)(B)(iii). Pub. L. 99–514, § 1895(d)(3)(A), inserted “The payment of any premium (other than any payment referred to in the last sentence of subparagraph (C)) shall be considered to be timely if made within 30 days after the date due or within such longer period as applies to or under the plan.”
Subsec. (k)(2)(B)(iv). Pub. L. 99–514, § 1895(d)(4)(A)(iii), substituted “Group health plan coverage” for “Reemployment” in heading.
Subsec. (k)(2)(B)(iv)(I). Pub. L. 99–514, § 1895(d)(4)(A)(ii), substituted “covered under any other group health plan (as an employee or otherwise)” for “a covered employee under any other group health plan”.
Subsec. (k)(2)(B)(iv)(II). Pub. L. 99–509, § 9501(b)(2)(A), inserted “in the case of a qualified beneficiary other than a qualified beneficiary described in paragraph (7)(B)(iv),”.
Subsec. (k)(2)(B)(v). Pub. L. 99–514, § 1895(d)(4)(A)(i), struck out cl. (v), remarriage of spouse, which read as follows: “In the case of an individual who is a qualified beneficiary by reason of being the spouse of a covered employee, the date on which the beneficiary remarries and becomes covered under a group health plan.”
Subsec. (k)(3). Pub. L. 99–509, § 9501(a)(1), added subpar. (F) and concluding provisions.
Subsec. (k)(5)(B). Pub. L. 99–514, § 1895(d)(5)(A), as amended by Pub. L. 99–509, § 9307(c)(2)(B), and Pub. L. 100–647, § 1018(t)(7)(B), inserted “of continuation coverage” and “If there is a choice among types of coverage under the plan, each qualified beneficiary is entitled to make a separate selection among such types of coverage.” See 1988 Amendment note above.
Subsec. (k)(6)(B). Pub. L. 99–509, § 9501(d)(1), substituted “(D), or (F)” for “or (D)”.
Subsec. (k)(6)(C). Pub. L. 99–514, § 1895(d)(6)(A), inserted “within 60 days after the date of the qualifying event”.
Subsec. (k)(6)(D)(i). Pub. L. 99–509, § 9501(d)(1), substituted “(D), or (F)” for “or (D)”.
Subsec. (k)(7)(B)(iii). Pub. L. 99–514, § 1895(d)(7), added cl. (iii).
Subsec. (k)(7)(B)(iv). Pub. L. 99–509, § 9501(c)(1), added cl. (iv).
Subsec. (l). Pub. L. 99–514, § 613(a), added subsec. (l). Former subsec. (l) redesignated (m).
Pub. L. 99–272, § 10001(c), redesignated former subsec. (k), relating to cross references, as (l).
Subsec. (m). Pub. L. 99–514, § 1161(a), added subsec. (m) relating to special rules for health insurance costs of self-employed individuals, and further directed that this section be amended “by redesignating subsection (n) as subsection (m)”, which directory language could not be executed because this section does not contain a subsec. (n).
Pub. L. 99–514, § 613(a), redesignated subsec. (l), relating to cross references, as (m).
1984—Subsec. (i)(2). Pub. L. 98–369, § 2354(d), substituted “section 213(d)” for “section 213(e)”.
Subsec. (j). Pub. L. 98–573 added subsec. (j). Former subsec. (j) redesignated (k).
Subsec. (j)(3). Pub. L. 98–369, § 512(b), added par. (3).
Subsec. (k). Pub. L. 98–573 redesignated former subsec. (j) as (k).
1982—Subsec. (a). Pub. L. 97–216 inserted provisions under which amounts expended by Members of Congress within each taxable year for living expenses shall not be deductible for income tax purposes in excess of $3,000.
Subsec. (c)(1). Pub. L. 97–248, § 288(a), substituted “is unlawful under the Foreign Corrupt Practices Act of 1977” for “would be unlawful under the laws of the United States if such laws were applicable to such payment and to such official or employee” after “government, the payment”, and “(or is unlawful under the Foreign Corrupt Practices Act of 1977)” for “(or would be unlawful under the laws of the United States)” before “shall be upon the Secretary”.
Subsec. (h). Pub. L. 97–248, § 128(b)(2), redesignated subsec. (i), relating to State legislators’ travel expenses away from home, as (h). Former subsec. (h), relating to group health plans, redesignated (i).
Subsec. (i). Pub. L. 97–248, § 128(b)(2), redesignated former subsec. (h), relating to group health plans, as (i). Former subsec. (i), relating to State legislators’ travel expenses away from home, redesignated (h). Former subsec. (i), relating to cross references, redesignated (j).
Subsec. (j). Pub. L. 97–248, § 128(b)(1), redesignated former subsec. (i), relating to cross references, as (j).
1981—Subsec. (a). Pub L. 97–51 struck out provisions under which amounts expended by Members of Congress within each taxable year for living expenses could not be deductible for income tax purposes in excess of $3,000.
Subsec. (h). Pub. L. 97–35 added subsec. (h) relating to group health plans. Former subsec. (h), as added by Pub. L. 97–34 and relating to State legislators’ travel expenses away from home, redesignated (i). See 1982 Amendment note above.
Pub. L. 97–34 added subsec. (h) relating to State legislators’ travel expenses away from home. Former subsec. (h), relating to cross references, redesignated (i). See 1982 Amendment note above.
Subsec. (i). Pub. L. 97–35 redesignated former subsec. (h), as added by Pub. L. 97–34 and relating to State legislators’ travel expenses away from home, as (i). See 1982 Amendment note above.
Pub. L. 97–34 redesignated former subsec. (h), relating to cross references, as (i). See 1982 Amendment note above.
1976—Subsec. (a). Pub. L. 94–455, § 1901(c)(4), struck out reference to Territory in provisions following par. (3).
Subsec. (c). Pub. L. 94–455, § 1906(b)(13)(A), struck out in pars. (1) and (2) “or his delegate” after “Secretary”.
1971—Subsec. (c). Pub. L. 92–178, § 310(a)(2), substituted “Illegal bribes, kickbacks, and other payments” for “Bribes and illegal kickbacks” in heading.
Subsec. (c)(2). Pub. L. 92–178, § 310(a)(1), substituted provisions respecting “Other illegal payments” for former provisions on “Other bribes or kickbacks” reading “If in a criminal proceeding a taxpayer is convicted of making a payment (other than a payment described in paragraph (1) which is an illegal bribe or kickback, or his plea of guilty or nolo contendere to an indictment or information charging the making of such a payment is entered or accepted in such a proceeding, no deduction shall be allowed under subsection (a) on account of such payment or any related payment made prior to the date of the final judgment in such proceeding.”
Subsec. (c)(3). Pub. L. 92–178, § 310(a)(1), substituted provisions respecting kickbacks, rebates, and bribes under medicare and medicaid for former statute of limitations provisions.
1969—Subsec. (c). Pub. L. 91–172, § 902(b), designated existing provisions as par. (1), extended the applicability of nondeductible expenses for payments to any official or employee of any government, or of any agency or instrumentality of any government, and added pars. (2) and (3).
Subsecs. (f), (g). Pub. L. 91–172, § 902(a), added subsecs. (f) and (g). Former subsec. (f) redesignated (h).
Subsec. (h). Pub. L. 91–172, §§ 516(c)(2)(A), 902(a), redesignated former subsec. (f) as (h), substituted “(1) For” for “For”, and inserted reference to section 1253 for special rule relating to the treatment of payments by a transferee of a franchise, trademark, or trade name.
1962—Subsec. (a)(2). Pub. L. 87–834, § 4(b), substituted “(including amounts expended for meals and lodging other than amounts which are lavish or extravagant under the circumstances)” for “including the entire amount expended for meals and lodging)”.
Subsecs. (e), (f). Pub. L. 87–834, § 3(a), added subsec. (e) and redesignated former subsec. (e) as (f).
1960—Subsec. (b). Pub. L. 86–779, § 7(b), inserted “the dollar limitations,” after “the percentage limitations,”.
Subsecs. (d), (e). Pub. L. 86–779, § 8(a), added subsec. (d) and redesignated former subsec. (d) as (e).
1958—Subsecs. (c), (d). Pub. L. 85–866, § 5(a), added subsec. (c) and redesignated former subsec. (c) as (d).
Pub. L. 119–21, title VII, § 70603(b),
Amendment by section 11002(d)(6) of Pub. L. 115–97 applicable to taxable years beginning after
Pub. L. 115–97, title I, § 13306(a)(2),
Pub. L. 115–97, title I, § 13307(b),
Pub. L. 115–97, title I, § 13308(c),
Pub. L. 115–97, title I, § 13311(b),
Pub. L. 115–97, title I, § 13531(b),
Pub. L. 115–97, title I, § 13601(e),
Amendment by Pub. L. 113–295 effective
Amendment by Pub. L. 112–10 effective as if included in the provisions of, and the amendments made by, the provisions of Pub. L. 111–148 to which it relates, see section 1858(d) of Pub. L. 112–10, set out as a note under section 36B of this title.
Pub. L. 111–240, title II, § 2042(b),
Pub. L. 111–148, title IX, § 9014(b),
Pub. L. 111–148, title X, § 10108(g)(2),
Pub. L. 110–343, div. A, title III, § 302(c)(1),
Pub. L. 108–357, title III, § 318(c),
Amendment by section 802(b)(2) of Pub. L. 108–357 effective
Amendment by Pub. L. 108–121 applicable to amounts paid or incurred in taxable years beginning after
Pub. L. 105–277, div. J, title II, § 2002(b),
Amendment by Pub. L. 105–206 effective, except as otherwise provided, as if included in the provisions of the Taxpayer Relief Act of 1997, Pub. L. 105–34, to which such amendment relates, see section 6024 of Pub. L. 105–206, set out as a note under section 1 of this title.
Pub. L. 105–34, title IX, § 934(b),
Pub. L. 105–34, title XII, § 1203(c),
Pub. L. 105–34, title XII, § 1204(b),
Amendment by section 1602(c) of Pub. L. 105–34 effective as if included in the provisions of the Health Insurance Portability and Accountability Act of 1996, Pub. L. 104–191, to which such amendment relates, see section 1602(i) of Pub. L. 105–34, set out as a note under section 26 of this title.
Amendment by section 311(a) of Pub. L. 104–191 applicable to taxable years beginning after
Pub. L. 104–191, title III, § 322(c),
Pub. L. 104–188, title I, § 1704(p)(4),
Pub. L. 104–7, § 1(c),
Amendment by section 13131(d)(2) of Pub. L. 103–66 applicable to taxable years beginning after
Pub. L. 103–66, title XIII, § 13174(a)(3),
Pub. L. 103–66, title XIII, § 13174(b)(2),
Pub. L. 103–66, title XIII, § 13211(b),
Pub. L. 103–66, title XIII, § 13222(e),
Pub. L. 103–66, title XIII, § 13442(b),
Pub. L. 102–486, title XIX, § 1938(b),
Pub. L. 102–227, title I, § 110(b),
Amendment by section 11111(d)(2) of Pub. L. 101–508 applicable to taxable years beginning after
Pub. L. 101–508, title XI, § 11410(c),
Pub. L. 101–239, title VI, § 6202(b)(5),
Pub. L. 101–239, title VII, § 7107(c),
Pub. L. 101–239, title VII, § 7862(c)(3)(D),
Amendment by Pub. L. 101–140 effective as if included in section 1151 of Pub. L. 99–514, see section 203(c) of Pub. L. 101–140, set out as a note under section 79 of this title.
Amendment by sections 1011B(b)(1)–(3) and 1018(t)(7)(B) of Pub. L. 100–647 effective, except as otherwise provided, as if included in the provision of the Tax Reform Act of 1986, Pub. L. 99–514, to which such amendment relates, see section 1019(a) of Pub. L. 100–647, set out as a note under section 1 of this title.
Pub. L. 100–647, title III, § 3011(d),
Pub. L. 99–514, title VI, § 613(b),
Pub. L. 99–514, title XI, § 1161(b),
Pub. L. 99–514, title XVIII, § 1895(d)(6)(D),
Pub. L. 99–514, title XVIII, § 1895(e),
Amendment by section 9307(c)(2)(B) of Pub. L. 99–509 effective as if included in the enactment of Tax Reform Act of 1986, Pub. L. 99–514, see section 9307(c)(2) of Pub. L. 99–509, set out as a note under section 1395u of Title 42, The Public Health and Welfare.
Pub. L. 99–509, title IX, § 9501(e),
Amendment by Pub. L. 99–272 applicable to plan years beginning on or after
Pub. L. 98–573, title II, § 232(b),
Amendment by section 512(b) of Pub. L. 98–369 applicable to amounts paid or incurred after
Amendment by section 2354(d) of Pub. L. 98–369 effective
Pub. L. 97–248, title II, § 288(c),
Amendment by section 128(b) of Pub. L. 97–248 effective as if such amendment had been originally included as part of this section as this section was amended by the Omnibus Budget Reconciliation Act of 1981, Pub. L. 97–35, see section 128(e)(2) of Pub. L. 97–248, set out as a note under section 1395x of Title 42, The Public Health and Welfare.
Pub. L. 97–216, title II, § 215(d),
Pub. L. 97–51, § 139(b)(3),
Pub. L. 97–35, title XXI, § 2146(c)(2),
Pub. L. 97–34, title I, § 127(b),
Amendment by section 1901(c)(4) of Pub. L. 94–455 applicable with respect to taxable years beginning after
Pub. L. 92–178, title III, § 310(b),
Pub. L. 91–172, title IX, § 902(c),
Amendment by section 516(c)(2)(A) of Pub. L. 91–172 applicable to transfers after
Pub. L. 87–834, § 4(c),
Pub. L. 87–834, § 3(b),
Pub. L. 86–779, § 7(c),
Pub. L. 86–779, § 8(d),
Pub. L. 85–866, title I, § 5(b),
Pub. L. 104–208, div. A, title II, § 2711,
Pub. L. 102–227, title I, § 110(a)(2),
Pub. L. 101–239, title VII, § 7107(a)(2),
Pub. L. 100–647, title VI, § 6008,
For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§ 1101–1147 and 1171–1177] or title XVIII [§§ 1800–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after
Pub. L. 97–51, § 139(a),
Pub. L. 94–455, title VI, § 604,
[Amendment of section 604 of Pub. L. 94–455 by section 1 of Pub. L. 96–178, which purported to substitute “
No deductions to be allowed in computing taxable income for two-thirds of any amount paid or incurred on a judgment entered against any person in a suit brought under section 208(b) of Pub. L. 94–12, see section 208(c) of Pub. L. 94–12, title II,
Pub. L. 85–866, title I, § 97,
Pub. L. 86–564, title III, § 301,
Extension of time for filing of claims for refunds or credit of overpayments of income tax resulting from application of this section, see section 96 of Pub. L. 85–866, set out as a note under section 6511 of this title.