ESOP Promotion and Exansion Act Introduced in the Senate
Senator Ben Cardin (D-MD) recently introduced Senate Bill 1212, the "Promotion and Expansion of Private Employee Ownership Act of 2015." with the support of 13 co-sponsors including Roy Blunt (R-MO), Amy Klobuchar(D-MN), Mary Landrieu (D-LA), Pat Roberts (R-KS), Debbie Stabenow (D-MI), John Thune (R-SD), Michael Crapo (R-ID) and Sherrod Brown (D-OH).
Among other things, S.1212 would allow selling shareholders of S-corporation ESOPs to participate the capital gains tax deferral (aka, "1042 Rollover"), direct the Department of the Treasury to establish the S Corporation Employee Ownership Assistance Office to foster increased employee ownership of S corporations and amend the Small Business Act to define "ESOP business concern" and allow such a concern to continue to qualify for loans, preferences, and other programs under such Act. Click here for more detail.
The ESOP Association expresses strong support for S. 1212. “Needless to say, it is extremely pleasing to see these Senate leaders, representing bi-partisanship, stand up for employee stock ownership through ESOPs,” stated ESOP Association President, J. Michael Keeling. “Research proves that ESOPs are more profitable, more productive, and provide sustainable jobs. We need policies to encourage employee stock ownership, and the proposed policies in S. 1212, should address core social issues such as adequate retirement security and making sure working Americans have an ownership stake in our capitalistic system.”
Click here to contact your Senator and ask they join in supporting this Pre-ESOP bill, S.1212.