Promotion and Expansion of Private Employee Ownership Act of 2025
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
This bill, the Promotion and Expansion of Private Employee Ownership Act of 2025, aims to encourage more businesses to offer employee stock ownership plans (ESOPs) to their employees. It makes changes to tax laws to simplify the process for selling company stock to ESOPs, establishes a Treasury office to provide assistance to S corporations considering ESOPs, and creates an Advocate for Employee Ownership within the Department of Labor to promote employee ownership and provide guidance. The bill also clarifies eligibility for small business programs for companies with ESOPs.
Key provisions
- Expands the availability of ESOPs in S corporations by modifying tax rules.
- Creates a Department of the Treasury S Corporation Employee Ownership Assistance Office to provide guidance and support.
- Establishes an Advocate for Employee Ownership within the Department of Labor to promote employee ownership.
- Redefines ‘small business concern’ for purposes of Small Business Act loans and programs for ESOP-owned businesses.
- Allows for a full deferral of tax for sales of employer stock to ESOPs.
- Designates a specific section of the Employee Retirement Income Security Act of 1974 to include the Advocate for Employee Ownership.
- Authorizes appropriations for the Advocate for Employee Ownership.
- Requires the Secretary of Labor to consult with the S Corporation Employee Ownership Assistance Office.
Who is affected
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Sponsors
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33 on record
Primary sponsor
Cosponsors
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