Pro-ESOP Legislation Introduced in House
Executive Director
On April 29, Representatives Dave Reichert (R-WA) and Ron Kind (D-WI) introduced the Promotion and Expansion of Private Employee Ownership Act of 2015 (H.R. 2096). Rep. Reichert's announcement describes the bill as designed "to encourage owners of S Corporations to sell their stock to an ESOP, expand financing opportunities for S Corporation ESOPs, provide technical assistance for companies that may be interested in forming an S Corporation ESOP, and ensure that small businesses that become ESOPs retain their Small Business Association certification."
Rep. Kind said that "by making it easier for companies to become employee-owned, this legislation will not only grow the number of employee-owned businesses, it will provide retirement security to more Americans. Employee-owned companies perform better—not just for themselves but for every one of their employees as well." Both Reps. Kind and Reichert are on the House Ways and Means Committee.
The other original cosponsors of the bill, similar to legislation introduced in the last Congress, are Reps. Paulsen (R-MN), Blumenauer (D-OR), Tiberi (R-OH), Neal (D-MA), Boustany (R-LA), and Pascrell (D-NJ).