The below ESOP Legislation was introduced in the 115th Congress (2017-2018). This page provides a link to the bills, a short summary, the numbers of co-sponsors and which Indiana Senator or Representative(s) has supported these bills.
Senate:
S.Res.665 This resolution was introduced October 2, 2018 by Senator Tammy Baldwin. The resolution designates October 2018 as National Employee Ownership Month. This resolution enjoys by partisan support with 9 Dems, 2 Rep, and 2 Independents. Senator Todd Young (R-IN) co-sponsored this bill.
S 2786. This bill was introduced April 26, 2018 and expands opportunities available to employee-owned business concerns through Small Business Administration loan programs. This bill was sponsored by Senator Kristin Gillibrand (D-NY) and has 6 co-sponsors. Senator Todd Young (R-IN) co-sponsored this bill. This bill was signed into law on Aug 13, 2018 – see our blog post for the final language.
S 1788. This bill was introduced September 11, 2017 and establishes a loan program and tax incentives to assist employee stock ownership plans (ESOPs). This bill was sponsored by Senator Tammy Baldwin (D-WI) and has 1 co-sponsor. No Indiana Senator has co-sponsored this bill.
S 1618. This bill was introduced July 24, 2017 and amends the Internal Revenue Code to exclude certain purchases of employee-owned stock from being considered as outstanding voting stock for the purpose of the tax on excess business holdings of a private foundation in a business enterprise. This bill was sponsored by Senator Debbie Stabenow (D-MI) and has no co-sponsors.
S 1589. This bill was introduced July 19, 2017 and amends the Internal Revenue Code to extend to all domestic corporations, including S corporations, provisions allowing deferral of tax on gain from the sale of employer securities to an S corporation-sponsored employee stock ownership plan (ESOP). This bill was sponsored by Senator Pat Roberts (R-KS), enjoys bipartisan support, and has 39 cosponsors. Senator Joe Donnelly (D-IN) co-sponsored this bill.
S 1538. This bill was introduced July 12, 2017 and amends the Small Business Act to require the Small Business Administration’s (SBA) Service Corps of Retired Executives (SCORE) to appoint a SCORE Employee Ownership Director, whose duties shall relate to the various forms of employee ownership. This bill was sponsored by Senator Gary Peters (D-MI) and has two co-sponsors Senators James Risch (R-ID), and Kirsten Gillibrand (D-NY). No Indiana Senator has co-sponsored this bill.
S 1444. This bill was introduced June 27, 2017 and 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. This bill was sponsored by Senator Mark Warner (D-VA) and has 1 co-sponsor. No Indiana Senator has co-sponsored this bill.
S 1082. This bill was introduced May, 10, 2017 and requires the Department of the Treasury to establish the U.S. Employee Ownership Bank, which shall be authorized to provide, in accordance with specified terms, conditions, and other requirements, financial assistance to increase employee ownership of a company. This bill was sponsored by Senator Bernard Sanders (I-VT) and has 4 co-sponsors Senators Kirsten Gillibrand (D-NY), Patrick Leahy (D-VT), Margaret Hassan (D-NH), and Jenne Shaheen (D-NH). No Indiana Senator has co-sponsored this bill.
S 1081. This bill was introduced May 10, 2017 and requires the Department of Labor to: (1) establish within the Employment and Training Administration an Employee Ownership and Participation Initiative to promote employee ownership and participation in business decision-making; and (2) establish a program that may include grants for outreach, technical assistance, and training to encourage new and existing state programs to foster employee ownership and participation in business decision-making. This bill was sponsored by Senator Benard Sanders (I-VT) and has 6 co-sponsors. No Indiana Senator has co-sponsored this bill.
S 488. This bill was introduced March 1, 2017 and requires the Securities and Exchange Commission to increase, from $5 million to $10 million, the 12-month sales threshold beyond which an issuer is required to provide investors with additional disclosures related to compensatory benefit plans. This bill was sponsored by Senator Pat Toomey (R-PA) and has 2 co-sponsors Senators Mark Warner (D-VA) and Ben Sadde (R-NE). This bill passed in the Senate on 9/11/2017 and the House on 7/17/2018. No Indiana Senator has co-sponsored this bill.
S Res 295. This resolution was introduced October 19, 2017 and designates October 2017 as National Employee Ownership Month. This resolution was sponsored by Senator Tammy Baldwin (D-WI) and has 11 cosponsors. Senator Todd Young (R-IN) co-sponsored this resolution.
House:
HR 5236. This bill was introduced March 8, 2018 and expands opportunities available to employee-owned business concerns through Small Business Administration loan programs. This bill was sponsored by Rep. Nydia Velazquez (D-NY-7) and has no co-sponsors. Passed in the House on 5/8/2018. No Indiana Representative has co-sponsored this bill.
HR 3084. This bill was introduced June 27, 2017 and 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. This bill was sponsored by Rep. Erik Paulsen (R-MN-3) and has 6 co-sponsors. Representative Jackie Walorski (R-IN-2) co-sponsored this bill.
HR 2387. This bill was introduced May 4, 2017 and requires the Department of Labor to: (1) establish within the Employment and Training Administration an Employee Ownership and Participation Initiative to promote employee ownership and participation in business decision-making; and (2) establish a program that may include grants for outreach, technical assistance, and training, to encourage new and existing state programs to foster employee ownership and participation in business decision-making. This bill was sponsored by Rep Jared Polis (D-CO-2) and has 3 co-sponsors. No Indiana Representative has co-sponsored this bill.
HR 2357. This bill was introduced May 4, 2017 and requires the Department of the Treasury to establish the U.S. Employee Ownership Bank, which shall be authorized to provide, in accordance with specified terms, conditions, and other requirements, financial assistance to increase employee ownership of a company. This bill was sponsored by Rep. Peter DeFazio (D-OR-4), and has no co-sponsors. No Indiana Representative has co-sponsored this bill.
HR 2293. This bill was introduced May 2, 2017 and amends the Internal Revenue Code to exclude certain purchases of employee-owned stock from being considered as outstanding voting stock for the purpose of the tax on excess business holdings of a private foundation in a business enterprise. This bill was sponsored by Rep. George Holding (R-NC-2) and has 17 co-sponsors. No Indiana Representative has co-sponsored this bill.
HR 2092. This bill was introduced April 12, 2017 and amends the Internal Revenue Code to: (1) extend to all domestic corporations, including S corporations, provisions allowing deferral of tax on gain from the sale of employer securities to an S corporation-sponsored employee stock ownership plan (ESOP); and (2) allow a tax deduction for 50% of the interest incurred on loans to S corporation-sponsored ESOPs for the purchase of employer securities. This bill was sponsored by Rep. David Reichert (R-WA-8) and has 85 co-sponsors including three from Indiana. Representative Jackie Walorski (R-IN-2), Luke Messer (R-IN-6), and Jim Banks (R-IN-3) have all cosponsored this bill.
HR 1792. This bill was introduced March 29, 2017 and amends the Internal Revenue Code to exclude from the gross income of an employee: (1) shares of employer securities received in a qualified employee stock distribution as compensation for services that do not exceed the lowest number of employer securities received by any employee in such distribution; (2) any gain on such securities if held by an employee for not less than 10 years; and (3) in the case of any qualified disposition of an employer security that meets such 10-year holding requirement, any gain on so much stock acquired during the 60-day period beginning on the date of such disposition as does not exceed the fair market value of the employer security so disposed. This bill was sponsored by Rep. Dana Rohrabcher (R-CA-48) and has 1 co-sponsor. No Indiana Representative has co-sponsored this bill.
HR 1343. This bill was introduced March 2, 2017 and requires the Securities and Exchange Commission to increase, from $5 million to $10 million, the 12-month sales threshold beyond which an issuer is required to provide investors with additional disclosures related to compensatory benefit plans. The bill was sponsored by Rep. Randy Hultgren (R-IL-14) and has 7 co-sponsors. Passed the House on 4/4/2017. No Indiana Representative has co-sponsored this bill.
