S Corporation ESOP Legislation in the Senate

In April, Senators Ben Cardin (D-MD) and Pat Roberts (R-KS) introduced the Promotion and Expansion of Private Employee Ownership Act (S. 742). Several other members of the Senate Finance Committee from both parties are also sponsoring the bill. Among other things, the bill would extend to selling shareholders in S corporations the deferral of capital gains tax for certain sales to an ESOP.