Bill Would Boost Retirement Savings
U.S. Sens. Steve Daines (R-Mont.) and Maggie Hassan (D-N.H.) have introduced a bipartisan bill to encourage retirement savings and support America’s businesses.
The “Promotion and Expansion of Private Employee Ownership Act” bolsters the growth of S corporations that are owned by Employee Stock Ownership Plans and eliminates barriers that businesses face in establishing a new S-ESOP or expanding the employee-ownership stake in an S corporation.
“ESOPs are beneficial to both employees and business owners by expanding ownership of the economy to the middle class and making it easier for folks to invest in retirement,” said Daines.
The act:
• Incentivizes owners of S Corporations to sell their stock to an ESOP by providing deferral treatment for contributions of S Corporation stock to an ESOP so long as certain reinvestment requirements are met.
• Provides technical assistance for companies that may be interested in forming an S-ESOP.
• Ensures small businesses that become ESOPs retain their SBA certification.
• Affirms the importance of preserving the S-ESOP structure in the Internal Revenue Code.
• Creates the position of an “Employee Ownership Advocate” at the Department of Labor to support the formation and success of employee ownership.
