Bill > HR2258

Introduced Session

To amend the Internal Revenue Code of 1986 and the Small Business Act to expand the availability of employee stock ownership plans in S corporations, and for other purposes. This bill expands tax incentives and federal assistance for employee stock ownership plans (ESOPs) that are sponsored by S corporations. The bill provides additional tax incentives for ESOPs by (1) extending to all domestic corporations, including S corporations, provisions allowing deferral of tax on gain from the sale of employer securities to an ESOP; and (2) allowing a tax deduction for 50% of the interest received by a bank on loans to S corporation-sponsored ESOPs for the purchase of employer securities. The Department of the Treasury must establish the S Corporation Employee Ownership Assistance Office to foster increased employee ownership of S corporations. The bill defines an "ESOP business concern" and allows such a concern to continue to qualify as a small business for the purposes of programs under the Small Business Act. An "ESOP business concern" is a business concern that was a small business concern eligible for a loan, preference, or other program under the Small Business Act before more than 49% of the business concern was acquired by an ESOP.

AI Summary

Committee Categories

Ron Kind (D)*,  Andy Barr (R),  Nanette Barragán (D),  Earl Blumenauer (D),  Brendan Boyle (D),  Mo Brooks (R),  Ted Budd (R),  Gil Cisneros (D),  Emanuel Cleaver (D),  James Comer (R),  Sharice Davids (D),  Danny Davis (D),  Rodney Davis (R),  Madeleine Dean (D),  Ron Estes (R),  Dwight Evans (D),  Abby Finkenauer (D),  Brian Fitzpatrick (R),  Bill Foster (D),  Louie Gohmert (R),  Jared Golden (D),  James Hagedorn (R),  Vicky Hartzler (R),  Brian Higgins (D),  Mike Kelly (R),  Robin Kelly (D),  Ro Khanna (D),  Dan Kildee (D),  Ann Kuster (D),  Darin LaHood (R),  David Loebsack (D),  Roger Marshall (R),  Cathy McMorris Rodgers (R),  Gwen Moore (D),  Ralph Norman (R),  Bill Pascrell (D),  Dean Phillips (D),  Chellie Pingree (D),  Katie Porter (D),  Tom Reed (R),  Terri Sewell (D),  Adrian Smith (R),  Jason Smith (R),  Bryan Steil (R),  Greg Steube (R),  Van Taylor (R),  G.T. Thompson (R),  Ann Wagner (R),  Jackie Walorski (R),  Steve Watkins (R),  Peter Welch (D),  Brad Wenstrup (R),  Susan Wild (D), 

Referred to the Committee on Ways and Means, and in addition to the Committees on Education and Labor, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned. (on 04/10/2019)

Official Document