matters as the Secretary may require. The reports required by this subsection shall be filed at such time and in such manner as may be required by the Secretary. (7) Regulations The Secretary shall prescribe such regulations and other guidance as may be necessary or appropriate to carry out this subsection, including any guidelines regarding the determination of wages, average compensation, and compensation ratio. . (b) Effective date The amendment made by subsection (a) shall apply to taxable years beginning after the date of the enactment of this Act. 3. Contracting preference for entities with certain pay ratios (a) Amendment Chapter 47 of title 41, United States Code, is amended by inserting after section 4714 the following new section: 4715. Preference for entities with certain pay ratios (a) Preference In the evaluation of bids or proposals for a contract for the procurement of goods or services, the head of an executive agency shall provide a preference to an entity that for the previous calendar year has a compensation ratio of less than 50-to-1. (b) Compensation ratio defined In this section, the term compensation ratio has the meaning given that term in section 11(e)(3)(A) of the Internal Revenue Code of 1986, except the ratio determined for the calendar year preceding the calendar year of the contract to which this section applies. . (b) Clerical amendment The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 4714 the following new item: 4715. Preference for entities with certain pay ratios. .