Co-Sponsors Added to The ESOP Promotion and Improvement Act of 2007 (S. 1322)

The ESOP Promotion and Improvement Act of 2007 (S. 1322) was introduced on May 7, 2007 by Sen. Blanche Lincoln [D-AR] and now has four co-sponsors:

Sen. Michael Crapo [R-ID]
Sen. Mary Landrieu [D-LA]
Sen. Patrick Leahy [D-VT]
Sen. Sheldon Whitehouse [D-RI]

“This bill is in the first stage of the legislative process where the bill is considered in committee and may undergo significant changes in markup sessions.” It has been referred to the Senate Finance Committee. “The majority of bills never make it out of committee.”

Here is a summary of the bill:

“Employee Stock Ownership Plan Promotion and Improvement Act of 2007 - Amends the Internal Revenue Code to: (1) exempt certain distributions, including dividends, by S corporations to an employee stock ownership plan (ESOP) from the penalty tax for premature employee benefit plan withdrawals; (2) exempt deductions for ESOP dividends from corporate alternative minimum tax adjustments based on adjusted earnings and profits; (3) allow deferral of the recognition of gain for certain sales to ESOPs sponsored by any domestic corporation, including S corporations; (4) allow reinvestment of ESOP stock proceeds eligible for nonrecognition of gain in certain mutual funds; (5) modify certain ESOP stock ownership rules; and (6) allow a de minimis exception from pension plan investment diversification requirements for ESOP accounts with balances of $2,500 or less."

Updates:

• ESOP Advocacy and The ESOP Promotion and Improvement Act of 2007 (S. 1322) (04/18/08)
• The ESOP Promotion and Improvement Act of 2007 (05/10/07)