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Expanding Employee Ownership: New Tax Breaks and Small Business Support

This law makes it easier for employees of small businesses (S corporations) to become owners through Employee Stock Ownership Plans (ESOPs). It removes tax barriers for current owners selling to ESOPs and ensures that ESOP-owned companies retain access to vital small business support programs. The goal is to boost retirement savings and job stability for millions of workers by promoting employee ownership.
Key points
Tax rules are changed to make it immediately more attractive for S corporation owners to sell their company stock to an ESOP.
Companies majority-owned by an ESOP will keep their "small business concern" status, ensuring continued eligibility for federal loans and support programs.
New federal offices, including an Advocate for Employee Ownership, will be established to provide education, technical help, and dispute resolution support for ESOPs.
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Additional Information
Print number: 118_S_2515
Sponsor: Sen. Cardin, Benjamin L. [D-MD]
Process start date: 2023-07-26
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Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Promotion and Expansion of Private Employee Ownership Act of 2023

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_S_2515.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2023-07-26.

What are the main provisions?

Key points include:

  • Tax rules are changed to make it immediately more attractive for S corporation owners to sell their company stock to an ESOP.
  • Companies majority-owned by an ESOP will keep their "small business concern" status, ensuring continued eligibility for federal loans and support programs.
  • New federal offices, including an Advocate for Employee Ownership, will be established to provide education, technical help, and dispute resolution support for ESOPs.
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 2025-12-26.

CATEGORIES

Labor Taxes Economy