Reduction of Excess Business Holding Accrual Act

Bill 119 HR 2014, also known as the Employee-Owned Stock Purchase Act, aims to amend the Internal Revenue Code of 1986 in relation to the tax on private foundation excess business holdings. The bill proposes to consider employee-owned stock purchased by a business enterprise through certain employee stock ownership retirement plans as outstanding for the purpose of calculating the tax on excess business holdings.

This legislation is designed to provide tax relief for businesses that have employee stock ownership plans in place. By treating employee-owned stock as outstanding, businesses will be able to reduce their tax liability on excess business holdings, ultimately encouraging more companies to implement employee stock ownership plans.

Overall, Bill 119 HR 2014 seeks to support and promote employee ownership in businesses, while also ensuring that private foundations are not unfairly penalized for holding excess business holdings. The bill aims to strike a balance between promoting employee ownership and maintaining tax compliance for private foundations.