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Tax Changes for Private Foundations and Employee Stock Plans

This bill amends tax rules for private foundations' excess business holdings. It allows companies that repurchase stock from employee stock ownership retirement plans to treat that stock as still outstanding, potentially helping foundations avoid additional taxes. The aim is to simplify the management of employee-owned stock without negative tax consequences for foundations.
Key points
Companies repurchasing stock from employee retirement plans can treat it as outstanding, affecting foundation holding calculations.
The change applies to stock purchased since 2005 and to tax years ending after the bill's enactment.
New rules may help private foundations avoid tax penalties related to excess business holdings if those holdings stem from repurchased employee stock.
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Additional Information
Print number: 117_HR_3152
Sponsor: Rep. Kildee, Daniel T. [D-MI-5]
Process start date: 2021-05-12
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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_3152.

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 2021-05-12.

What are the main provisions?

Key points include:

  • Companies repurchasing stock from employee retirement plans can treat it as outstanding, affecting foundation holding calculations.
  • The change applies to stock purchased since 2005 and to tax years ending after the bill's enactment.
  • New rules may help private foundations avoid tax penalties related to excess business holdings if those holdings stem from repurchased employee stock.
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. Kildee, Daniel T. [D-MI-5].

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