U.S. SENATE – U.S. Senators Steve Daines (R-Mont.) and Maggie Hassan (D-N.H.) today introduced a bipartisan bill to encourage retirement savings and support America’s businesses. The “Promotion and Expansion of Private Employee Ownership Act” bolsters the growth of S corporations that are owned by Employee Stock Ownership Plans (S-ESOP) and eliminates barriers that businesses face in establishing a new S-ESOP or expanding the employee-ownership stake in an S corporation.
“ESOPs are beneficial to both employees and business owners by expanding ownership of the economy to the middle class and making it easier for folks to invest in retirement. I’m proud to lead this bipartisan bill with Senator Hassan to support Montana workers and businesses and make the American dream accessible for all,” said Daines.
“Behind every successful business are employees who dedicate time and energy to their work, and employee stock ownership plans give workers a real financial share in the fruits of their efforts. This bipartisan legislation will make it easier for businesses to establish employee stock ownership plans, helping both Granite State workers and businesses get ahead and stay ahead,” said Hassan.
Read the bill text HERE.
Senators Marsha Blackburn (R-Tenn.), Tina Smith (D-Minn.), Chuck Grassley (R-Iowa), Chris Van Hollen (D-Md.), Thom Tillis (R-N.C.), Bernie Sanders (D-Vt.), Todd Young (R-Ind.), Peter Welch (D-Vt.), Jim Risch (R-Idaho), Mazie Hirono (Hawaii), Jon Husted (R-Ohio) and Maria Cantwell (D-Wash.) joined Daines and Hassan in introducing the bill.
Background:
The “Promotion and Expansion of Private Employee Ownership Act:”
- Incentivizes owners of S Corporations to sell their stock to an ESOP by providing deferral treatment for contributions of S Corporation stock to an ESOP so long as certain reinvestment requirements are met
- Provides technical assistance for companies that may be interested in forming an S-ESOP
- Ensures small businesses that become ESOPs retain their SBA certification
- Affirms the importance of preserving the S-ESOP structure in the Internal Revenue Code
- Creates the position of an “Employee Ownership Advocate” at the Department of Labor to support the formation and success of employee ownership.
Senator Daines also introduced this bill in the 118th Congress- read the press release from 2023 HERE.
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Contact: Matt Lloyd, Gabby Wiggins