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US SB1416
Bill
AI Summary
- Amends Internal Revenue Code Section 4943(c)(4)(A) to treat certain employee-owned stock repurchased by a business enterprise as "outstanding" for calculating private foundation excess business holdings
- Applies to voting stock that is not publicly traded, was purchased from an employee stock ownership plan (ESOP) on or after January 1, 2020, and is held as treasury stock, cancelled, or retired
- Caps the treatment at 49 percent of permitted holdings to prevent foundations from exceeding ownership limits through this provision
- Excludes stock purchases made during the first 10 years after an ESOP is established from qualifying for this treatment
- Takes effect for taxable years ending after the date of enactment
Legislative Description
Reduction of Excess Business Holding Accrual Act
Taxation
Last Action
Read twice and referred to the Committee on Finance.
4/10/2025
Committee Referrals
Finance4/10/2025
Full Bill Text
No bill text available