AB 356

Under current law, a corporation may deduct from its income tax the

compensation paid to its officers and employees. The corporate income tax deduction

for compensation paid to executive officers cannot exceed $1,000,000, unless the

compensation is performance-based.

This bill further limits any single corporate income tax deduction for

compensation paid to an employee or officer to an amount not to exceed the

compensation paid to a corporation's lowest-paid full-time employee multiplied by

25.