HR 684119th CongressIn Committee

Protecting American Savers and Retirees Act

Introduced: Jan 23, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The Protecting American Savers and Retirees Act would repeal the Internal Revenue Code’s excise tax on the repurchase of corporate stock. By repealing Chapter 37 (and removing its place in the table of chapters), the bill eliminates the tax that currently applies to corporate stock buybacks. The repeal would take effect for taxable years beginning after December 31, 2024 (i.e., for 2025 and later). In short, the bill ends the stock-repurchase excise tax and changes the federal tax landscape surrounding corporate buybacks starting with 2025 filings.

Key Points

1Repeals Chapter 37 of the Internal Revenue Code, which imposes an excise tax on repurchases of corporate stock.
2Removes the corresponding entry in the table of chapters for subtitle D of the Internal Revenue Code (clerical amendment).
3Effective date: the repeal applies to taxable years beginning after December 31, 2024 (starting with 2025).
4Short title established: “Protecting American Savers and Retirees Act.”
5No new tax is created by this bill; the existing stock-repurchase excise tax is simply repealed.

Impact Areas

Primary group/area affected: U.S. corporations that engage in stock repurchases; corporate tax planning and financing decisions.Secondary group/area affected: Investors, savers, and retirees who hold corporate equities and are affected by corporate financing choices and stock prices.Additional impacts: Potential reduction in federal revenue associated with the stock-repurchase excise tax; possible shifts in market behavior related to share buybacks starting in 2025; broader implications for corporate governance and capital allocation strategies.

Generated by gpt-5-nano on Nov 1, 2025