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Easier Rules for Private Foundations on Employee-Owned Stock

New rules make it easier for private foundations to manage their investments in companies with employee stock ownership. Stock bought back from employee retirement plans will not count towards ownership limits, potentially reducing tax burdens for these foundations. Citizens benefiting from such foundations may indirectly see more stable or increased funding for charitable causes.
Key points
Shares bought back by a company from employee stock ownership plans will be treated as still outstanding, helping private foundations avoid excess business holding taxes.
This applies to shares not easily traded on a stock market and purchased on or after January 1, 2020.
The aim is to support the financial stability of private foundations, which often fund important social initiatives.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1416
Sponsor: Sen. Scott, Rick [R-FL]
Process start date: 2025-04-10
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
AI work logs for this document launch

OFFICIAL LEGAL TITLE

Reduction of Excess Business Holding Accrual Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_1416.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-04-10.

What are the main provisions?

Key points include:

  • Shares bought back by a company from employee stock ownership plans will be treated as still outstanding, helping private foundations avoid excess business holding taxes.
  • This applies to shares not easily traded on a stock market and purchased on or after January 1, 2020.
  • The aim is to support the financial stability of private foundations, which often fund important social initiatives.
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 Sen. Scott, Rick [R-FL].

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 2025-12-23.

CATEGORIES

Taxes Economy