The bipartisan legislation, which was introduced today by lead sponsors Senator Ben Cardin and Senator Rob Portman, along with 25 original Senate co-sponsors, will:
- Incentivize owners of S corporations to sell their stock to an employee stock ownership plan (ESOP);
- Provide needed technical assistance for companies that may be interested in forming an employee-owned S corporation (S ESOP);
- Ensure small businesses that become ESOPs retain their SBA certification; and
- Affirm the importance of preserving the S ESOP structure in the Internal Revenue Code.
At a time when many Americans are struggling with job losses, research reveals that job growth among employee-owned S corporations has historically outpaced that of the private sector as a whole, and employee-owners are more confident about their jobs and less anxious about their financial futures. In fact, employees at S ESOP companies have more than twice the average total retirement savings of Americans who work at non-ESOP companies.