1. Short title This Act may be cited as the Employee Profit-Sharing Encouragement Act of 2018 . 2. Denial of deduction for executive compensation unless employer maintains profit-sharing distributions (a) In general Section 162 of the Internal Revenue Code of 1986 is amended by redesignating subsection (s) as subsection (t) and by inserting after subsection (r) the following new subsection: (s) Executive compensation paid by employers who do not maintain profit-Sharing distributions (1) In general In the case of a specified employer, no deduction shall be allowed under this chapter for applicable employee remuneration with respect to any highly compensated individual (within the meaning of section 105(h)) for any taxable year unless qualified profit-sharing distributions are made during such taxable year. (2) Qualified profit-sharing distributions For purposes of this subsection— (A) In general The term qualified profit-sharing distributions means a cash distribution made pursuant to a written plan of the employer under which— (i) employees (including part-time employees) who have been employed for at least 1 year as of the date of the distribution have a right to such distribution, and (ii) the amount of such distributions are defined under such plan on the basis of a measure of the receipts, profit, revenues, or earnings of such employer. (B) Minimum distribution requirements Such term shall not include any distributions made pursuant to such plan during the taxable year if the aggregate distributions made pursuant to such plan during such taxable year are less than 5 percent of the employer’s net income for the taxable year as determined pursuant to the employer’s books and records prepared in accordance with the employer’s accounting procedures. (C) Nondiscrimination Such term shall not include any distributions made pursuant to such plan during the taxable year unless such plan satisfies requirements similar to the requirements of section 401(k)(3)(A)(ii) applied by treating the distributions made pursuant