Ending Corporate Greed Act

S 4642, the "Ending Corporate Greed Act," imposes a new 95% tax on excess profits for large corporations with average annual gross receipts of at least $500 million over 2015-2019. It directly affects C-corporations (excluding REITs and S-corps) meeting this revenue threshold by calculating "excess profits" as current taxable income minus an inflation-adjusted average of their 2015-2019 profits. Key mechanisms include removing certain tax deductions (like those for foreign-derived income), adjusting depreciation rules, and capping the tax at 75% of a corporation’s modified taxable income. The tax applies to taxable years beginning after December 31, 2023, and expires after 2026.