Expansion of ESOPs for S Corporations

Employee Stock Ownership Plans (ESOPs) are a way to give employees an ownership interest in a corporation (ESOPs can’t be used for partnerships or limited liability companies). The Promotion and Expansion of Private Employee Ownership Act of 2021 (H.R. 4141) would incentivize the use by S corporations in several ways, including the deferral of tax on certain sales of employer stock to an ESOP.  #IdeaoftheDay