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Tax Changes for Private Foundations and Employee Stock Plans

This bill modifies tax rules for private foundations holding business interests. It makes it easier for companies to repurchase stock from employee stock ownership plans, potentially affecting the financial stability of these plans and benefits for employees.
Key points
Simplifies the process for companies to repurchase stock from Employee Stock Ownership Plans (ESOPs).
Changes how private foundations' excess business holdings are calculated, potentially reducing their tax burden.
Stock repurchased by a company from an employee plan will be treated as still outstanding, impacting foundation ownership limits.
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Expired
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Additional Information
Print number: 117_HR_2207
Sponsor: Rep. Diaz-Balart, Mario [R-FL-25]
Process start date: 2021-03-26
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 for purposes of the tax on private foundation excess business holdings to treat as outstanding any employee-owned stock purchased by a business enterprise pursuant to certain employee stock ownership retirement plans.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_2207.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-03-26.

What are the main provisions?

Key points include:

  • Simplifies the process for companies to repurchase stock from Employee Stock Ownership Plans (ESOPs).
  • Changes how private foundations' excess business holdings are calculated, potentially reducing their tax burden.
  • Stock repurchased by a company from an employee plan will be treated as still outstanding, impacting foundation ownership limits.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Diaz-Balart, Mario [R-FL-25].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes Labor