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Tax Breaks for Companies Sharing Stock with Employees

This new law aims to encourage companies to share a portion of their stock with employees. Companies that do so may qualify for lower taxes. For employees, this means the opportunity to receive stock in the company they work for, which could impact their personal finances.
Key points
Companies that regularly distribute stock to employees may pay lower corporate income taxes.
Employees receiving company stock under this program will not have to pay income tax on it.
The program applies to companies with at least 500 full-time employees in the U.S. and meeting specific conditions regarding the proportion of stock distributed to employees.
Stock distributed to employees must be common stock with the same rights as other company shares, and cannot be performance-based incentive equity.
article Official text account_balance Process page
Introduced
Citizen Poll
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Additional Information
Print number: 119_HR_4739
Sponsor: Rep. Suozzi, Thomas R. [D-NY-3]
Process start date: 2025-07-23
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Summarized by: gemini-2.5-flash
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 119_HR_4739.

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 2025-07-23.

What are the main provisions?

Key points include:

  • Companies that regularly distribute stock to employees may pay lower corporate income taxes.
  • Employees receiving company stock under this program will not have to pay income tax on it.
  • The program applies to companies with at least 500 full-time employees in the U.S. and meeting specific conditions regarding the proportion of stock distributed to employees.
  • Stock distributed to employees must be common stock with the same rights as other company shares, and cannot be performance-based incentive equity.
What is the specific legal status?

The current status is Introduced.

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. Suozzi, Thomas R. [D-NY-3].

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 2025-12-23.

CATEGORIES

Taxes Labor Economy