The below ESOP Legislation was introduced in the 116th Congress (2018-2020). 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.177 This bill introduced Jan 17, 2019 by Sen. Pat Roberts (R-KS). This bill expands tax incentives and federal assistance for employee stock ownership plans (ESOPs) that are sponsored by S corporations. The bill extends to all domestic corporations, including S corporations, provisions allowing deferral of tax on gain from the sale of employer securities to an ESOP. 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. This bill enjoys bipartisan support with 38 cosponsors 19 Democratic, 17 Republican, and 2 Independent. No Indiana Senator has cosponsored this bill – Updated 8/4/20
S. 1661 This bill introduced May 23, 2019 by Sen. Bernard Sanders (I-VT) is a bill that requires the Department of the Treasury to establish the U.S. Employee Ownership Bank, which must provide, in accordance with specified terms, conditions, and other requirements, financial assistance to increase employee ownership of a company. The bill specifies that, in general, if an employer orders the closing of a plant or facility, the employer must offer its employees an opportunity to purchase the plant or facility though an employee stock-ownership plan or an eligible worker-owned cooperative. This bill has 4 cosponsors, 4 Democratic. No Indiana Senator has cosponsored this bill. – Updated 10/25/19
S. 1666 This bill introduced May 23, 2019 by Sen. Bernard Sanders (I-VT) 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 has 7 cosponsors, 7 Democratic. (Companion bill to H.R. 3007 No Indiana Senator has cosponsored this bill. – Updated 11/18/19
S. 4236 This bill introduced July 21, 2030 by Sen. Ron Johnson (R-WI) which seeks to establish a grant program to encourage the creation and expansion of employee stock ownership plans. This bill has 1 cosponsor Sen. Tammy Baldwin (D-WI). No Indiana Senator has cosponsored this bill. – Updated 8/4/20
House:
H.R. 8606 This bill introduced October 16 2020, by Rep. Ron Kind (D-WI-3), to defer the tax of certain sales of employer stock and reduce certain retirement-related excise taxes. This Bill has two cosponsors both republican.
H.R. 6851 This bill introduced May 13, 2020 by Rep. Alexandria Ocasio-Cortez (D-NY-14) and requires a major corporation that receives federal aid related to COVID-19 (i.e., coronavirus disease 2019) to make an annual grant of equity to its employees until all such federal aid is repaid.
A major corporation is a corporation that, among other things, has its securities traded on a national securities exchange, has to register its securities with the Securities and Exchange Commission, and has an aggregate market value of $75 million.
The number of shares of stock such a corporation must grant to its employees shall be determined according to a specified formula. Such grant (1) shall be a grant of whole shares of stock; (2) may not be conditioned on the purchase of company stock or any employee performance evaluations; and (3) shall be equal, in terms of voting and dividend rights, to the class of securities otherwise issued by the corporation that carries the highest such rights. As of July 12, there are 0 Cosponsors of this bill.
H.R. 6395 This bill the National Defense Authorization Act for FY 2021 introduced by Rep. Adam Smith (D-WA-9) on March 26, 2020. An amendment to this bill would add ESOP companies to the category of non-traditional businesses, conceivably giving these companies an edge in winning contract awards even if they do not meet the small business standards. One of the promoters of the change was Rep. Mo Brooks (R-AL), who represents the Huntsville area, which has the highest concentration of ESOP companies of any metro area in the U.S. relative to its size; many of these companies are in the defense field.
H.R. 2258 This bill introduced April 10, 2019 by Rep. Ron Kind (D-WI-3) and Rep. Jason Smith (R-MO-8). 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. This bill enjoys bipartisan support with 52 cosponsors, 26 Republican and 26 Democrat. Representative Jackie Walorski (R-IN-2) has cosponsored this bill. -Updated 11/15/20
H.R. 2983 This bill introduced May 29, 2019 by Rep. Peter DeFazio (D-OR-4) is a bill that requires the Department of the Treasury to establish the U.S. Employee Ownership Bank, which must provide, in accordance with specified terms, conditions, and other requirements, financial assistance to increase employee ownership of a company. The bill specifies that, in general, if an employer orders the closing of a plant or facility, the employer must offer its employees an opportunity to purchase the plant or facility though an employee stock-ownership plan or an eligible worker-owned cooperative. This bill has no cosponsors as of 10/24/19. No Indiana Representative has cosponsored this bill.
H.R. 3007 This bill introduced May 23, 2019 by Rep. Mark Pocan (D-WI-2) 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 (Companion bill to S1666). Thil bill has 1 cosponsor 1 Democrat, 0 Republican and Independent, No Indiana Representative has cosponsored this bill. -Updated 11/18/19
