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Tax Relief for Private Foundations Holding Stock in Employee-Owned Companies (ESOPs).

This bill modifies tax rules concerning how private charitable foundations calculate their permitted ownership limits in a business. It specifically benefits companies that repurchase stock from their Employee Stock Ownership Plans (ESOPs). By treating this repurchased stock as still "outstanding," the law helps foundations avoid penalties related to holding excessive business interests, supporting the stability of employee ownership structures.
Key points
The law changes how stock is counted when a business buys back shares from its Employee Stock Ownership Plan (ESOP).
Repurchased ESOP stock is treated as still "outstanding," which helps private foundations that are shareholders in the company comply with limits on business holdings.
This technical tax change provides flexibility for companies with ESOPs, reducing the risk of high tax penalties for associated charitable foundations.
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Additional Information
Print number: 118_HR_6440
Sponsor: Rep. Steube, W. Gregory [R-FL-17]
Process start date: 2023-11-15
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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 118_HR_6440.

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 2023-11-15.

What are the main provisions?

Key points include:

  • The law changes how stock is counted when a business buys back shares from its Employee Stock Ownership Plan (ESOP).
  • Repurchased ESOP stock is treated as still "outstanding," which helps private foundations that are shareholders in the company comply with limits on business holdings.
  • This technical tax change provides flexibility for companies with ESOPs, reducing the risk of high tax penalties for associated charitable foundations.
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. Steube, W. Gregory [R-FL-17].

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 2025-12-30.

CATEGORIES

Taxes Economy