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Tax Relief for Employee Stock: New Rules for Companies and Citizens

This act introduces tax changes to encourage companies to share stock with employees. Companies that do so may qualify for more favorable capital gains tax rates. For employees, this means the possibility of receiving stock without income tax and tax relief when selling shares to cover specific expenses like education or medical care.
Key points
Companies that regularly distribute stock to employees under a SHARE plan may pay lower capital gains taxes on the sale of their stock.
Employees receiving stock under a SHARE plan will not pay income tax on its value at the time of receipt.
Gains from selling SHARE plan stock may be tax-exempt if used for qualified education loans, medical expenses, or principal residence mortgage debt.
A SHARE plan requires at least 80% of eligible employees to receive stock, distributed equally, and sellable after a maximum of 3 years or in cases of hardship.
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Additional Information
Print number: 117_HR_4962
Sponsor: Rep. Larson, John B. [D-CT-1]
Process start date: 2021-08-06
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Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

SHARE Plan Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_4962.

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 2021-08-06.

What are the main provisions?

Key points include:

  • Companies that regularly distribute stock to employees under a SHARE plan may pay lower capital gains taxes on the sale of their stock.
  • Employees receiving stock under a SHARE plan will not pay income tax on its value at the time of receipt.
  • Gains from selling SHARE plan stock may be tax-exempt if used for qualified education loans, medical expenses, or principal residence mortgage debt.
  • A SHARE plan requires at least 80% of eligible employees to receive stock, distributed equally, and sellable after a maximum of 3 years or in cases of hardship.
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. Larson, John B. [D-CT-1].

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 2026-01-02.

CATEGORIES

Taxes Labor Economy