U.S. Representatives Ron Kind (D-WI) and Jason Smith (R-MO) introduced the Promotion and Expansion of Private Employee Ownership Act, which will encourage the formation of employee-owned businesses and promote retirement savings through employee stock ownership plans in S corporations. Rep. Kind promoted the bill during a visit to Realityworks, an ESOP company in Eau Claire, Wisc. The bill's companion in the Senate (S.177) was introduced in January by Senators Pat Roberts (R-KS) and Ben Cardin (D-MD).

The bill would extend the deferral of capital gains to qualifying sales to an ESOP of shares in an S corporation, provide technical assistance, clarify that S corporation ESOPs retain their small business status with the SBA, and take other steps to encourage the creation of ESOPs in S corporations.