Bill > HR3105

This bill aims to expand and promote employee stock ownership plans (ESOPs) in S corporations by introducing several key provisions. It establishes a new S Corporation Employee Ownership Assistance Office within the Department of the Treasury to provide education and technical assistance about employee ownership, and creates an Advocate for Employee Ownership position within the Department of Labor to support and promote employee ownership practices. The bill accelerates and expands tax deferral benefits for sales of employer stock to ESOPs by modifying existing tax code provisions, effectively making it more attractive for businesses to implement employee stock ownership plans. Additionally, the bill ensures that small businesses with ESOPs can maintain their small business status and eligibility for related programs, even if an ESOP acquires more than 49% of the company's stock. The legislation is motivated by findings that employee-owned S corporations provide greater job stability, meaningful retirement savings, and an ownership opportunity for workers, particularly addressing the fact that 40% of American workers currently have no formal retirement account. The bill seeks to preserve and foster employee ownership by creating supportive infrastructure, providing technical assistance, and removing barriers to ESOP implementation across various industries and business sizes.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/3105/all-info