BIPARTISAN GROUP OF WAYS AND MEANS MEMBERS
REINTRODUCE S ESOP PROMOTION LEGISLATION
Today, Congressman Dave Reichert (R-WA) and Congressman Ron Kind (D-WI) reintroduced bipartisan legislation in the House of Representatives designed to incent the growth of more S ESOP businesses across the country. Reps. Reichert and Kind were joined by a bipartisan group of their Ways and Means colleagues including Ranking Member Richard Neal (D-MA) and Reps. Erik Paulsen (R-MN), Earl Blumenauer (D-OR), Pat Tiberi (R-OH), and Bill Pascrell (D-NJ) in introducing H.R. 2092, the Promotion and Expansion of Private Employee Ownership Act of 2017.
H.R. 2092 will encourage the creation of more S corporation ESOPs, so that more American workers can benefit from the enhanced retirement security and good jobs that come from private, employee ownership. H.R. 2092 is identical to legislation from last Congress that earned the support of 96 House members, including 22 members of the Ways and Means Committee. The bill specifically includes provisions to:
- Incentivize owners of S corporations to sell their stock to an ESOP;
- Encourage the flow of bank capital to ESOP-owned S corporations;
- Provide needed technical assistance for companies that may be interested in forming an S ESOP;
- Ensure small businesses that become ESOPs retain their SBA certification; and
- Affirm the importance of preserving the S ESOP structure in the Internal Revenue Code.
To build support for the legislation, we ask that you please write your member of Congress asking that he/she cosponsor the bill. It will just take a few minutes with a letter that can be found on ESCA’s website that will automatically be populated with your Representative’s contact information. We will be adding a Senate letter once the Senate bill is introduced. To write your member of Congress in support of S ESOP legislation, please click here: http://esca.us/take-action/advocacy/
ESCA will be actively promoting the legislation throughout this Congress, adding new cosponsors to the list with D.C. lobby days and district events back home.