Bill > S2461

This bill aims to promote and expand employee stock ownership plans (ESOPs) in S corporations by introducing several key provisions. First, it accelerates and expands tax deferral benefits for sales of employer stock to ESOPs, removing previous time limitations. The bill establishes a new S Corporation Employee Ownership Assistance Office within the Department of the Treasury to provide education, outreach, and technical assistance about employee ownership. It also modifies the Small Business Act to ensure that businesses do not lose their small business status or eligibility for programs simply because an ESOP acquires more than 49% of the company's stock. Additionally, the bill creates an Advocate for Employee Ownership within the Department of Labor, who will serve as a liaison between various stakeholders, provide public education about employee ownership, help resolve disputes, and submit annual reports to Congress about the state of employee ownership. The legislation recognizes the potential benefits of ESOPs, including job stability, retirement savings, and broader employee financial participation, and seeks to foster increased employee ownership across various industries and business sizes.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2461/all-info