Bill · H.R. 2014· House(119-HR-2014)
Reduction of Excess Business Holding Accrual Act
- Introduced
- 3/10/2025
- Last activity
- 3/10/2025 — Referred to the House Committee on Ways and Means.
- Sponsored by
- W. Steube
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the "Reduction of Excess Business Holding Accrual Act," seeks to amend the Internal Revenue Code of 1986. It specifically targets the tax on private foundation excess business holdings. The legislation aims to change how certain employee-owned stock is treated. Specifically, it would treat voting stock purchased by a business enterprise from an employee stock ownership plan as outstanding. This applies to stock that is not readily tradable on an established securities market.
Yes· 3 of 6
Does this make it easier to run a small business?+4
The bill assists businesses in managing employee stock ownership plan distributions.
Does this cut taxes for small businesses?+3
The bill provides tax relief for business enterprises purchasing employee-owned stock from ESOPs.
Would business owners be better off under this?+3
The bill helps business owners manage stock distributions from employee plans more effectively.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
-
Treatment of Employee-Owned Stock: The bill amends Section 4943(c)(4)(A) to treat certain voting stock as outstanding when it is purchased by a business enterprise from an employee stock ownership plan (Section 2(a)). This could benefit employees participating in such plans by allowing the business to purchase stock in connection with plan distributions.
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Protection of Holdings: The provision ensures that treating this stock as outstanding only occurs if it does not result in permitted holdings exceeding 49 percent (Section 2(a)).
Potential Negative Impacts for People
- Time Limitations on Plan Purchases: The new treatment of stock does not apply to purchases made from a plan during the 10-year period starting from the date the plan is established (Section 2(a)). This could limit the benefits for newer employee stock ownership plans.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Economy And Finance
- Improves Small Business Support+4Reduces Small Business Taxes+3Improves Economic Growth+1Increases Job Creation+1
- Demographic And Interest Groups
- Good For Business Owners+3Good For Middle Class Households+2
- 3/10/2025
- Referred to the House Committee on Ways and Means.
- Introduced in House
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.