Debbie Stabenow (D.Mi), has introduced S. 1618, which would exclude employee owned stock from private foundation excess business holding rules. The summary of the proposed legislation is as follows:
Introduced in Senate (07/24/2017)
This bill amends the Internal Revenue Code to exclude certain purchases of employee-owned stock from being considered as outstanding voting stock for the purpose of the tax on excess business holdings of a private foundation in a business enterprise.
The bill applies to any voting stock that is: (1) not readily tradable on an established securities market; (2) purchased by the business enterprise on or after January 1, 2005, from an employee stock ownership plan in which employees of the business enterprise participate, in connection with a distribution from the plan; and (3) held by the business enterprise as treasury stock, cancelled, or retired.
See summary, text and actions at following link: S.1618 – 115th Congress (2017-2018): A bill to amend the Internal Revenue Code of 1986 for purposes of the tax on private foundation excess business holdings to treat as outstanding any employee-owned stock purchased by a business enterprise pursuant to ce
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.