Bill Promoting ESOP Expansion Reintroduced

Senators Steve Daines (R-MT) and Maggie Hassan (D-NH) have introduced S. 2461, the Promotion and Expansion of Private Employee Ownership Act. According to a press release, the bill would do the following.

•    Incentivize owners of S Corporations to sell their stock to an Employee Stock Ownership Plan (ESOP) by providing deferral treatment for contributions of S Corporation stock to an ESOP so long as certain reinvestment requirements are met.
•    Provide technical assistance for companies that may be interested in forming an S-ESOP.
•    Ensure small businesses that become ESOPs retain their SBA certification.
•    Affirm the importance of preserving the S-ESOP structure in the Internal Revenue Code.
•    Create the position of an “Employee Ownership Advocate” at the Department of Labor to support the formation and success of employee ownership. 

Senator Daines previously introduced the bill in the 118th Congress. Reintroduction coincides with a hearing held by the Senate HELP committee last week titled “Empowering Workers by Expanding Employee Ownership”. Other ESOP legislation is scheduled for markup this week.