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HR 3111 109th Congress House Taxation College costs Commerce Corporation taxes Dividends Education Employee ownership Finance and Financial Sector Higher education Home ownership Housing and Community Development Housing finance Income tax Labor and Employment Minimum tax Mutual funds Small business Stockholders Tax credits Tax deductions

Employee Stock Ownership Plan Promotion and Improvement Act of 2005

Introduced: June 29, 2005 See on congress.gov
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This bill died when the 109th Congress ended
It never became law before the 109th Congress (2005–2006) adjourned, and bills don't carry over to the next Congress. It would have to be reintroduced. You can still save it for reference, but it won't receive updates.
 Everywhere this bill has been 3 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Jul 1, 2005
Referred to the Subcommittee on Trade.
Jun 29, 2005
Referred to the House Committee on Ways and Means.
Jun 29, 2005
Introduced in House
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 Plain-English summary Congressional Research Service

Employee Stock Ownership Plan Promotion and Improvement Act of 2005 - Amends the Internal Revenue Code to: (1) exempt certain distributions, including dividends, by S corporations to an employee stock ownership plan (ESOP) from the penalty tax for premature employee benefit plan withdrawals; (2) exempt deductions for ESOP dividends from corporate alternative minimum tax adjustments based on adjusted earnings and profits; (3) allow deferral of the recognition of gain for certain sales to ESOPs sponsored by any domestic corporation, including S corporations; (4) allow reinvestment of ESOP stock proceeds eligible for nonrecognition of gain in certain mutual funds; (5) modify certain ESOP stock ownership rules; (6) allow early distributions from an ESOP for higher education expenses and first-time homebuyer purchases without penalty; and (7) allow a de minimis exception from pension plan diversification requirements for ESOP accounts with balances of $2,500 or less.

What's happening now July 1, 2005

Referred to the Subcommittee on Trade.

 Related & companion bills 1
  • S 1319 Identical bill Employee Stock Ownership Plan Promotion and Improvement Act of 2005
 Bill text 1 version

Source documents hosted by congress.gov.

 Committees of jurisdiction 2
 Cosponsors 1
All 1 Democratic 1
D
Case, Ed
Hawaii · Jul 21, 2005
Cite this page click to expand
APA
U.S. Congress. (2026). H.R. 3111: Employee Stock Ownership Plan Promotion and Improvement Act of 2005. 109th Congress. Open America. https://openamerica.io/bill/109-HR-3111/
MLA
"H.R. 3111: Employee Stock Ownership Plan Promotion and Improvement Act of 2005." 109th Congress, 2026, Open America, https://openamerica.io/bill/109-HR-3111/.
Bluebook (legal)
H.R. 3111, 109th Cong. (2026), https://openamerica.io/bill/109-HR-3111/.
Markdown link
[H.R. 3111: Employee Stock Ownership Plan Promotion and Improvement Act of 2005](https://openamerica.io/bill/109-HR-3111/)
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