Stop Subsidizing Giant Mergers Act

This bill, the Stop Subsidizing Giant Mergers Act, changes how the Internal Revenue Code treats large corporate mergers and acquisitions. It prevents mergers between two companies that each have combined average annual gross receipts exceeding $500 million from being treated as tax-free reorganizations, unless specific exceptions apply. The exceptions include cases where one company already controls the other, both are controlled by a third corporation, or the companies qualify as small businesses under existing tax rules. The $500 million threshold will be adjusted for inflation starting in 2027, and the Treasury Department is authorized to create regulations to prevent companies from using multiple transactions to avoid these restrictions.