Promotion and Expansion of Private Employee Ownership Act of 2023

Promotion and Expansion of Private Employee Ownership Act of 2023

This bill accelerates to the enactment date of this bill the deferral of tax (currently, after December 31, 2027) on sales of employer stock to employee stock ownership plans (ESOPs) sponsored by S corporations. It also eliminates the limitation on the amount that may be deferred.

The Department of the Treasury must establish the S Corporation Employee Ownership Assistance Office to foster increased employee ownership of S corporations. The office must provide education and outreach about the benefits of employee ownership of S corporations and technical assistance to assist S corporations in sponsoring ESOPs.

The bill directs the Department of Labor to appoint an Advocate for Employee Ownership.

Bill 118 hr 4896, also known as the Promotion and Expansion of Private Employee Ownership Act of 2023, aims to encourage and support the growth of employee-owned businesses in the United States. The bill seeks to provide incentives and resources for companies to transition to employee ownership structures, such as employee stock ownership plans (ESOPs) and worker cooperatives.

The legislation includes provisions for grants and technical assistance to help businesses navigate the process of becoming employee-owned. It also establishes a national center for employee ownership to provide education and training on the benefits and mechanics of employee ownership.

Additionally, the bill includes tax incentives for businesses that choose to become employee-owned, such as capital gains tax deferrals for selling business ownership to employees. This is intended to make the transition to employee ownership more financially feasible for businesses. Overall, the Promotion and Expansion of Private Employee Ownership Act of 2023 aims to promote economic democracy and wealth distribution by empowering workers to have a stake in the companies they work for. It is a bipartisan effort to support and expand the growing trend of employee ownership in the United States.