In the 114th Congress, Senators Pat Roberts (R-KS) and Ben Cardin (D-MD) along with Representatives Dave Reichert (R-WA) and Ron Kind (D-WI) introduced the Promotion and Expansion of Private Employee Ownership Act (S. 1212/H.R. 2096) to help more Americans gain retirement savings and security through private employee ownership. Specifically, the bill seeks to:
- Incentivize owners of S corporations to sell their stock to an ESOP;
- Provide needed technical assistance for companies that may be interested in forming an S ESOP;
- Ensure small businesses that become ESOPs retain their SBA certification;
- Encourage the flow of bank capital to ESOP-owned S corporations (house bill only); and
- Affirm the importance of preserving the S ESOP structure in the Internal Revenue Code.