# 119-hr-3105: Promotion and Expansion of Private Employee Ownership Act of 2025

119-hr-3105, Promotion and Expansion of Private Employee Ownership Act of 2025, is a 119th Congress bill sponsored by Rep. Kelly, Mike [R-PA-16] (R-PA); status introduced; PRIA reads it as touching household money (as of 2026-10-30).

- Canonical: https://policyrisk.com/legislation/119-hr-3105
- As of: 2026-10-30
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-3105
- Congress: 119
- Title: Promotion and Expansion of Private Employee Ownership Act of 2025
- Status: introduced
- Introduced: 2025-04-30
- Sponsor: Rep. Kelly, Mike [R-PA-16] (R-PA)
- Cosponsors: 68
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-10-30

## Summary

**Expand employee ownership in S corporations** by making it easier and cheaper for S corporations to sell stock to employee stock ownership plans (ESOPs). The bill would change tax rules, create a Treasury office and an SBA ESOP program, and add a Labor Department Advocate to support ESOP formation and oversight. - Workers and participants: More employees could gain ownership stakes through ESOPs and benefit from federal outreach and education. ESOP participants are treated as directly owning their proportionate ESOP stock for eligibility in Small Business Administration loans, preferences, and programs. - S corporation owners and sellers: The bill would broaden and accelerate tax deferral for sales of employer stock to ESOPs by adjusting SECURE 2.0 timing and repealing the Internal Revenue Code section 1042(h) limitation for post-enactment sales, making ESOP transactions more tax-favored for sellers. - Federal support and programs: Establishes an S Corporation Employee Ownership Assistance Office at Treasury with a 90-day setup deadline, adds an ESOP-specific program in the Small Business Act, and creates an Advocate for Employee Ownership at the Department of Labor paid at Level V of the Executive Schedule with annual reporting duties.

## Cosponsors (68)

- Rep. Moolenaar, John R. [R-MI-2] (R-MI), 2026-09-28T00:00:00.000Z
- Rep. Wilson, Joe [R-SC-2] (R-SC), 2026-09-28T00:00:00.000Z
- Rep. Pingree, Chellie [D-ME-1] (D-ME), 2026-09-28T00:00:00.000Z
- Rep. Haridopolos, Mike [R-FL-8] (R-FL), 2026-09-28T00:00:00.000Z
- Rep. Simpson, Michael K. [R-ID-2] (R-ID), 2026-09-28T00:00:00.000Z
- Rep. Panetta, Jimmy [D-CA-19] (D-CA), 2025-04-30T00:00:00.000Z
- Rep. Estes, Ron [R-KS-4] (R-KS), 2025-04-30T00:00:00.000Z
- Rep. Schneider, Bradley Scott [D-IL-10] (D-IL), 2025-04-30T00:00:00.000Z
- Rep. Miller, Carol D. [R-WV-1] (R-WV), 2025-04-30T00:00:00.000Z
- Rep. Davis, Danny K. [D-IL-7] (D-IL), 2025-04-30T00:00:00.000Z
- Rep. Moore, Blake D. [R-UT-1] (R-UT), 2025-04-30T00:00:00.000Z
- Rep. Sewell, Terri A. [D-AL-7] (D-AL), 2025-04-30T00:00:00.000Z
- Rep. Tenney, Claudia [R-NY-24] (R-NY), 2025-05-01T00:00:00.000Z
- Rep. Davids, Sharice [D-KS-3] (D-KS), 2025-05-07T00:00:00.000Z
- Rep. Case, Ed [D-HI-1] (D-HI), 2025-05-13T00:00:00.000Z
- Rep. Fitzpatrick, Brian K. [R-PA-1] (R-PA), 2025-05-19T00:00:00.000Z
- Rep. Kim, Young [R-CA-40] (R-CA), 2025-06-04T00:00:00.000Z
- Rep. Rouzer, David [R-NC-7] (R-NC), 2025-06-05T00:00:00.000Z
- Rep. Smucker, Lloyd [R-PA-11] (R-PA), 2025-06-09T00:00:00.000Z
- Rep. Nunn, Zachary [R-IA-3] (R-IA), 2025-06-24T00:00:00.000Z
- Rep. Craig, Angie [D-MN-2] (D-MN), 2025-07-14T00:00:00.000Z
- Rep. Downing, Troy [R-MT-2] (R-MT), 2025-07-14T00:00:00.000Z
- Rep. Owens, Burgess [R-UT-4] (R-UT), 2025-07-15T00:00:00.000Z
- Rep. Smith, Adrian [R-NE-3] (R-NE), 2025-07-15T00:00:00.000Z
- Rep. Evans, Dwight [D-PA-3] (D-PA), 2025-07-22T00:00:00.000Z
- Rep. Brownley, Julia [D-CA-26] (D-CA), 2025-07-22T00:00:00.000Z
- Rep. Salinas, Andrea [D-OR-6] (D-OR), 2025-08-19T00:00:00.000Z
- Rep. Baumgartner, Michael [R-WA-5] (R-WA), 2025-09-03T00:00:00.000Z
- Rep. Yakym, Rudy [R-IN-2] (R-IN), 2025-09-08T00:00:00.000Z
- Rep. Thompson, Glenn [R-PA-15] (R-PA), 2025-09-15T00:00:00.000Z
- Rep. Bonamici, Suzanne [D-OR-1] (D-OR), 2025-09-15T00:00:00.000Z
- Rep. Moore, Barry [R-AL-1] (R-AL), 2025-09-17T00:00:00.000Z
- Rep. Suozzi, Thomas R. [D-NY-3] (D-NY), 2025-10-03T00:00:00.000Z
- Rep. Steube, W. Gregory [R-FL-17] (R-FL), 2025-10-03T00:00:00.000Z
- Rep. Franklin, Scott [R-FL-18] (R-FL), 2025-10-03T00:00:00.000Z
- Rep. Sánchez, Linda T. [D-CA-38] (D-CA), 2025-10-10T00:00:00.000Z
- Rep. Grothman, Glenn [R-WI-6] (R-WI), 2025-10-10T00:00:00.000Z
- Rep. Evans, Gabe [R-CO-8] (R-CO), 2026-10-15T00:00:00.000Z
- Rep. Bynum, Janelle S. [D-OR-5] (D-OR), 2026-10-22T00:00:00.000Z
- Rep. Finstad, Brad [R-MN-1] (R-MN), 2026-10-22T00:00:00.000Z
- Rep. Fischbach, Michelle [R-MN-7] (R-MN), 2026-10-26T00:00:00.000Z
- Rep. Vindman, Eugene Simon [D-VA-7] (D-VA), 2025-10-24T00:00:00.000Z
- Rep. Moran, Nathaniel [R-TX-1] (R-TX), 2025-10-24T00:00:00.000Z
- Rep. Graves, Sam [R-MO-6] (R-MO), 2025-11-10T00:00:00.000Z
- Rep. Langworthy, Nicholas A. [R-NY-23] (R-NY), 2025-12-01T00:00:00.000Z
- Rep. Bacon, Don [R-NE-2] (R-NE), 2025-12-10T00:00:00.000Z
- Rep. Mrvan, Frank J. [D-IN-1] (D-IN), 2025-12-10T00:00:00.000Z
- Rep. Boyle, Brendan F. [D-PA-2] (D-PA), 2026-01-07T00:00:00.000Z
- Rep. Veasey, Marc A. [D-TX-33] (D-TX), 2026-02-03T00:00:00.000Z
- Rep. Kelly, Robin L. [D-IL-2] (D-IL), 2026-02-03T00:00:00.000Z
- Rep. Cleaver, Emanuel [D-MO-5] (D-MO), 2026-02-03T00:00:00.000Z
- Rep. Shreve, Jefferson [R-IN-6] (R-IN), 2026-02-04T00:00:00.000Z
- Rep. Lee, Susie [D-NV-3] (D-NV), 2026-02-11T00:00:00.000Z
- Rep. Aderholt, Robert B. [R-AL-4] (R-AL), 2026-02-20T00:00:00.000Z
- Rep. Landsman, Greg [D-OH-1] (D-OH), 2026-02-20T00:00:00.000Z
- Rep. LaHood, Darin [R-IL-16] (R-IL), 2026-03-16T00:00:00.000Z
- Rep. Johnson, Dusty [R-SD-At Large] (R-SD), 2026-03-25T00:00:00.000Z
- Rep. Kustoff, David [R-TN-8] (R-TN), 2026-04-15T00:00:00.000Z
- Rep. Strong, Dale W. [R-AL-5] (R-AL), 2026-05-04T00:00:00.000Z
- Rep. Schakowsky, Janice D. [D-IL-9] (D-IL), 2026-05-07T00:00:00.000Z
- Rep. Khanna, Ro [D-CA-17] (D-CA), 2026-05-12T00:00:00.000Z
- Rep. Alford, Mark [R-MO-4] (R-MO), 2026-05-12T00:00:00.000Z
- Rep. Kiley, Kevin [I-CA-3] (I-CA), 2026-06-24T00:00:00.000Z
- Rep. Fitzgerald, Scott [R-WI-5] (R-WI), 2026-07-09T00:00:00.000Z
- Rep. Stauber, Pete [R-MN-8] (R-MN), 2026-07-23T00:00:00.000Z
- Rep. McDowell, Addison P. [R-NC-6] (R-NC), 2026-08-31T00:00:00.000Z
- Rep. Van Orden, Derrick [R-WI-3] (R-WI), 2026-08-31T00:00:00.000Z
- Rep. Baird, James R. [R-IN-4] (R-IN), 2026-08-31T00:00:00.000Z

## Provisions PRIA read

- Faster ESOP tax deferrals for S-corp sales: benefit, high. If enacted, sellers of S-corporation stock to an ESOP would get broader and faster tax deferral. The bill would remove a current limit in section 1042 for sales made after enactment. It would also start the SECURE 2.0 deferral rule on the date this bill is enacted, not December 31, 2027. This could…
- Small business access rules for ESOP firms: benefit, medium. The bill would set clear rules for ESOP-owned small firms under small business programs. For eligibility, each ESOP participant would count as directly owning their share of the stock. The rule would apply when the business qualified before more than 49% was acquired by the ESOP. It would take effe…
- New federal help for ESOPs and S corps: benefit, low. The bill would create two help points for ESOPs. Treasury would set up an S Corporation Employee Ownership Assistance Office within 90 days of enactment. Labor would appoint an Advocate for Employee Ownership to do outreach, help with ESOP disputes, and advise on rules. The Advocate would file a pu…

## Related bills

- 119-hr-909: Crime Victims Fund Stabilization Act of 2025
- 119-hr-3514: Improving Seniors’ Timely Access to Care Act of 2025
- 119-hr-1502: North Platte Canteen Congressional Gold Medal Act
- 119-hr-1262: Mikaela Naylon Give Kids a Chance Act
- 119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage Act
- 119-hr-452: Miracle on Ice Congressional Gold Medal Act

## Sources
- [119-hr-3105 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/3105)

## Related
- [119-hr-909: Crime Victims Fund Stabilization Act of 2025](https://policyrisk.com/legislation/119-hr-909)
- [119-hr-3514: Improving Seniors’ Timely Access to Care Act of 2025](https://policyrisk.com/legislation/119-hr-3514)
- [119-hr-1502: North Platte Canteen Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-1502)
- [119-hr-1262: Mikaela Naylon Give Kids a Chance Act](https://policyrisk.com/legislation/119-hr-1262)
- [119-hr-842: Nancy Gardner Sewell Medicare Multi-Cancer Early Detection Screening Coverage A…](https://policyrisk.com/legislation/119-hr-842)
- [119-hr-452: Miracle on Ice Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-452)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-3105 (as of 2026-10-30).