Promotion and Expansion of Private Employee Ownership Act of 2019
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Promotion and Expansion of Private Employee Ownership Act of 2019
This bill expands tax incentives and federal assistance for employee stock ownership plans (ESOPs) that are sponsored by S corporations.
The bill provides additional tax incentives for ESOPs by (1) extending to all domestic corporations, including S corporations, provisions allowing deferral of tax on gain from the sale of employer securities to an ESOP; and (2) allowing a tax deduction for 50% of the interest received by a bank on loans to S corporation-sponsored ESOPs for the purchase of employer securities.
The Department of the Treasury must establish the S Corporation Employee Ownership Assistance Office to foster increased employee ownership of S corporations.
The bill defines an "ESOP business concern" and allows such a concern to continue to qualify as a small business for the purposes of programs under the Small Business Act. An "ESOP business concern" is a business concern that was a small business concern eligible for a loan, preference, or other program under the Small Business Act before more than 49% of the business concern was acquired by an ESOP.
Referred to the Committee on Ways and Means, and in addition to the Committees on Education and Labor, and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Introduced in House Formatted Text PDF Formatted XML
Cite this page
U.S. Congress. (2026). H.R. 2258: Promotion and Expansion of Private Employee Ownership Act of 2019. 116th Congress. Open America. https://openamerica.io/bill/116-HR-2258/
"H.R. 2258: Promotion and Expansion of Private Employee Ownership Act of 2019." 116th Congress, 2026, Open America, https://openamerica.io/bill/116-HR-2258/.
H.R. 2258, 116th Cong. (2026), https://openamerica.io/bill/116-HR-2258/.
[H.R. 2258: Promotion and Expansion of Private Employee Ownership Act of 2019](https://openamerica.io/bill/116-HR-2258/)