Bill > HR2014

This bill amends the Internal Revenue Code to modify how private foundations calculate their business holdings for tax purposes, specifically related to employee stock ownership plans (ESOPs). Under the current law, private foundations are limited in how much stock they can own in a business enterprise. The bill introduces a new provision that allows certain employee-owned stock purchased by a business enterprise from an ESOP to be "treated as outstanding" for tax calculation purposes, even if the stock is actually held as treasury stock, cancelled, or retired. This means the stock will be counted in the foundation's ownership percentage calculation, but only if doing so would not cause the foundation to exceed its permitted ownership percentage. The provision does not apply during the first 10 years after an ESOP is established. The bill is effective for taxable years ending after its enactment and for stock purchases in taxable years beginning after December 31, 2019. The goal appears to be providing more flexibility for private foundations in managing their business holdings when stock is transferred through employee stock ownership retirement plans.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2014/all-info