Bill Would Make ESOPs Easier

Employee stock ownership plans (ESOPs) are a way for owners to transfer ownership to employees on a tax-advantaged basis. A report from the National Center for Employee Ownership says workers who participate in ESOPs have significantly more retirement security than other workers, but there are special challenges for S corporations to use ESOPs. A new bi-partisan bi-cameral bill called the Promotion and Expansion of Private Employee Ownership Act of 2023 would 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; and create an Advocate for Employee Ownership at the U.S. Department of Labor.  #IdeaoftheDay

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