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HR 5719 114th Congress House

Empowering Employees through Stock Ownership Act

Official title: To amend the Internal Revenue Code of 1986 to modify the tax treatment of certain equity grants.

Introduced: July 11, 2016 See on congress.gov
Taxation Corporate finance and managementEmployee benefits and pensionsIncome tax deferralIncome tax exclusion
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SecuritiesWages and earnings
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This bill died when the 114th Congress ended
It never became law before the 114th Congress (2015–2016) 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 17 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Sep 26, 2016
Received in the Senate.
Sep 22, 2016
Motion to reconsider laid on the table Agreed to without objection.
Sep 22, 2016
On passage Passed by the Yeas and Nays: 287 - 124 (Roll no. 544). (text of amendment in the nature of a substitute: CR H5822-5824)
Sep 22, 2016
Considered as unfinished business. (consideration: CR H5719-5835)
Sep 22, 2016
POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 5719, the Chair put the question on passage and by voice vote, announced that the ayes had prevailed. Mr. Crowley demanded the yeas and nays and the Chair postponed further proceedings on passage of the bill until a time to be announced.
Sep 22, 2016
The previous question was ordered pursuant to the rule. (consideration: CR H5829)
Sep 22, 2016
DEBATE - The House proceeded with one hour of debate on H.R. 5719.
Sep 22, 2016
Rule provides for consideration of H.R. 3438 and H.R. 5719. The resolution provides for one hour of general debate on H.R. 3438 and H.R. 5719. The resolution provides that it shall be in order at any time on the legislative day of September 22, 2016 or September 23, 2016, for the Speaker to entertain motions that the House suspend the rules.
Sep 22, 2016
Considered under the provisions of rule H. Res. 875. (consideration: CR H5822-5830)
Sep 21, 2016
Rule H. Res. 875 passed House.
Sep 20, 2016
Rules Committee Resolution H. Res. 875 Reported to House. Rule provides for consideration of H.R. 3438 and H.R. 5719. The resolution provides for one hour of general debate on H.R. 3438 and H.R. 5719. The resolution provides that it shall be in order at any time on the legislative day of September 22, 2016 or September 23, 2016, for the Speaker to entertain motions that the House suspend the rules.
Sep 16, 2016
Placed on the Union Calendar, Calendar No. 581.
Sep 16, 2016
Reported (Amended) by the Committee on Ways and Means. H. Rept. 114-748.
Sep 14, 2016
Ordered to be Reported (Amended) by Voice Vote.
Sep 14, 2016
Committee Consideration and Mark-up Session Held.
Jul 11, 2016
Referred to the House Committee on Ways and Means.
Jul 11, 2016
Introduced in House
 Votes taken on this bill 1
DateChamberWhat was voted onResultYes–No
Sep 22, 2016 House · vote #544 On Passage Passed 287–124 See who voted →
 Amendments to this bill 1

Amendments propose changes to this bill. Members vote on amendments separately before the final bill vote. An agreed amendment becomes part of the bill; a failed amendment does not.

AmendmentSponsorPurposeStatusLatest action
HAMDT 1,428 – Pursuant to the provisions of H.Res. 875 the amendment in the nature of a substitute recommended by the Commi… Pending –
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 Latest action September 26, 2016

Received in the Senate.

 Plain-English summary Congressional Research Service

Empowering Employees through Stock Ownership Act

This bill amends the Internal Revenue Code to allow an employee to elect to defer, for income tax purposes, income attributable to certain stock transferred to the employee by an employer.

The employee may defer the inclusion of income from the stock until the year that includes the earliest of the dates on which:

  • the stock is sold, exchanged, or otherwise transferred;
  • the employee becomes an excluded employee;
  • stock of the corporation becomes readily tradable on an established securities market;
  • seven years have passed after the rights of the employee in the stock are transferable or are not subject to a substantial risk of forfeiture, whichever occurs earlier; or
  • the employee elects to include the amount in income.

The stock must meet specified requirements and be transferred to the employee from an eligible corporation in connection with the performance of services as an employee.

A corporation is eligible if: (1) no stock of the corporation is readily tradable on an established securities market during the year or any preceding year, and (2) it has a written plan under which at least 80% of all employees have the same rights and privileges to receive stock for the year.

Employees are excluded if they are or have been: (1) a 1% owner, the chief executive officer, or the chief financial officer of the corporation; (2) a family member of the specified individuals; (3) or one of the four highest compensated officers of the corporation.

The corporation transferring stock must notify employees regarding the option of deferring income and meet specified withholding and reporting requirements.

 Related & companion bills 3
  • HRES 875 Procedurally related Providing for consideration of the bill (H.R. 3438) to amend title 5, United States Code, to postpone the effective dat…
  • S 3152 Identical bill Empowering Employees through Stock Ownership Act
  • S 3471 Related bill Retirement Enhancement and Savings Act of 2016
 Bill text 4 versions

Source documents hosted by congress.gov.

 Committees of jurisdiction 1
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APA
U.S. Congress. (2026). H.R. 5719: Empowering Employees through Stock Ownership Act. 114th Congress. Open America. https://openamerica.io/bill/114-HR-5719/
MLA
"H.R. 5719: Empowering Employees through Stock Ownership Act." 114th Congress, 2026, Open America, https://openamerica.io/bill/114-HR-5719/.
Bluebook (legal)
H.R. 5719, 114th Cong. (2026), https://openamerica.io/bill/114-HR-5719/.
Markdown link
[H.R. 5719: Empowering Employees through Stock Ownership Act](https://openamerica.io/bill/114-HR-5719/)
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