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Promoting Employee Stock Ownership in Small Businesses

This act aims to make it easier for employees to become co-owners of the companies they work for through special stock plans. This allows employees to build retirement savings and gain greater job stability. The changes primarily affect S-corporations and are designed to encourage the creation of such plans.
Key points
Tax deferral for certain sales of employer stock to employee stock ownership plans (ESOPs) in S-corporations, potentially boosting retirement savings.
Establishment of a Treasury Department office to educate companies and individuals about the benefits of employee ownership.
Companies with over 49% employee ownership will remain eligible for small business support programs.
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Expired
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Additional Information
Print number: 117_S_1300
Sponsor: Sen. Cardin, Benjamin L. [D-MD]
Process start date: 2021-04-22
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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

Promotion and Expansion of Private Employee Ownership Act of 2021

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_1300.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-04-22.

What are the main provisions?

Key points include:

  • Tax deferral for certain sales of employer stock to employee stock ownership plans (ESOPs) in S-corporations, potentially boosting retirement savings.
  • Establishment of a Treasury Department office to educate companies and individuals about the benefits of employee ownership.
  • Companies with over 49% employee ownership will remain eligible for small business support programs.
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 Sen. Cardin, Benjamin L. [D-MD].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Taxes Labor Economy