Pending US legislation on stock option tax deductions

Legislation has been introduced in the US Senate to revise the calculation of tax deduction associated with stock option compensation.  

Ending Excessive Corporate Deductions for Stock Options Act (Introduced in Senate - S 1491 IS )

View the text of the bill here:  http://thomas.loc.gov/cgi-bin/query/z?c111:S.1491.IS:

Currently, a company calculates compensation expense at the time of grant using Accounting Standards Codification Topic 718 (formerly FAS123R), but calculates the tax deduction at the time of exercise based on IRC Section 83.  The result is generally a significantly higher tax deduction than compensation expense.  S 1491 IS is aimed at limiting the tax deduction to the amount of recognized compensation expense.