2025—Subsec. (c)(2). Pub. L. 119–21 amended par. (2) generally. Prior to amendment, text read as follows: “For purposes of this section, the term ‘covered employee’ means any employee (including any former employee) of an applicable tax-exempt organization if the employee—

“(A) is one of the 5 highest compensated employees of the organization for the taxable year, or

“(B) was a covered employee of the organization (or any predecessor) for any preceding taxable year beginning after December 31, 2016.”

Pub. L. 119–21, title VII, § 70416(b), July 4, 2025, 139 Stat. 223, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 2025.”

Pub. L. 115–97, title I, § 13602(c), Dec. 22, 2017, 131 Stat. 2159, provided that: “The amendments made by this section [enacting this section] shall apply to taxable years beginning after December 31, 2017.”