U.S. SENATE – U.S. Senator Steve Daines (R-Mont.), amember of the Senate Finance Committee, and Ben Cardin (D-M.D.) introduced an expanded version of the “Promotion and Expansion of Private Employee Ownership Act.” This bipartisan legislation will encourage retirement savings by bolstering the growth of S corporations that are owned by Employee Stock Ownership Plans (S-ESOP) and would make it easier for middle class Montanans to invest towards retirement. Additionally, the bill would eliminate barriers that Montana businesses and their owners currently face in establishing a new S-ESOP or expanding the employee-ownership stake in an S corporation.
“While Montana workers and businesses struggle to navigate this challenging economy, it’s important we strengthen creative ways to help folks grow their wealth and reach financial security. ESOPs help expand ownership of the economy to middle class Montanans and make it easier for folks to invest toward a comfortable retirement,” Daines said. “America is the land of opportunity, and our bipartisan bill will help protect and preserve the American dream for Montanans from all walks of life.”
ESOPs have a proven record of keeping small businesses and jobs in their local communities, rewarding employees for their contribution to the success of the business, and creating more productive and resilient businesses.
The “Promotion and Expansion of Private Employee Ownership 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; and
- 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.
The bill cosponsored by Senators Debbie Stabenow (D-Mich.), Mike Crapo (R-Idaho), Sherrod Brown (D-Ohio), Charles Grassley (R-Iowa), Chris Van Hollen (D-M.D.), John Barrasso (R-Wyo.), Amy Klobuchar (D-Minn.), Todd Young (R-Ind.), Jon Tester (D-Mont.), Bill Cassidy (R-La.), Cory Booker (D-N.J.), Marsha Blackburn (R-Tenn.), Tina Smith (D-N.M.), Jim Risch (R-Idaho), Bernie Sanders (I-Vt.), Susan Collins (R-Maine), Angus King (I-Maine), Jerry Moran (R-Kan.), Jack Reed (D-R.I.), and Peter Welch (D-V.T.)