# 119-s-2461: Promotion and Expansion of Private Employee Ownership Act of 2025

119-s-2461, Promotion and Expansion of Private Employee Ownership Act of 2025, is a 119th Congress bill sponsored by Sen. Daines, Steve [R-MT] (R-MT); status introduced; PRIA reads it as touching household money (as of 2026-10-03).

- Canonical: https://policyrisk.com/legislation/119-s-2461
- As of: 2026-10-03
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-2461
- Congress: 119
- Title: Promotion and Expansion of Private Employee Ownership Act of 2025
- Status: introduced
- Introduced: 2025-07-24
- Sponsor: Sen. Daines, Steve [R-MT] (R-MT)
- Cosponsors: 33
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-10-03

## Summary

**Expands employee ownership by making certain S‑corporation ESOP stock sales fully tax‑deferrable and by creating federal offices to grow and support ESOPs.** This bill would remove an existing timing limit on that tax deferral and build a government support system to help companies and workers form ESOPs. - S‑corporation owners and sellers would be able to defer tax on qualifying sales of employer stock to employee stock ownership plans (ESOPs) prospectively, removing the prior December 31, 2027 deadline and repealing a Section 1042(h) constraint for sales after enactment. - Workers and ESOP companies would get clearer access to small business supports because the Small Business Act would treat ESOP participants as directly owning their proportional share for SBA loans, preferences, and programs, effective January 1 of the year after enactment. - Federal support would expand: the Treasury must create an S Corporation Employee Ownership Assistance Office within 90 days to provide outreach and technical help, and the Department of Labor would add an Advocate for Employee Ownership to coordinate outreach, help resolve ESOP disputes, and publish an annual public report.

## Cosponsors (33)

- Sen. Whitehouse, Sheldon [D-RI] (D-RI), 2026-09-29T00:00:00.000Z
- Sen. Hassan, Margaret Wood [D-NH] (D-NH), 2025-07-24T00:00:00.000Z
- Sen. Blackburn, Marsha [R-TN] (R-TN), 2025-07-24T00:00:00.000Z
- Sen. Smith, Tina [D-MN] (D-MN), 2025-07-24T00:00:00.000Z
- Sen. Grassley, Chuck [R-IA] (R-IA), 2025-07-24T00:00:00.000Z
- Sen. Van Hollen, Chris [D-MD] (D-MD), 2025-07-24T00:00:00.000Z
- Sen. Tillis, Thomas [R-NC] (R-NC), 2025-07-24T00:00:00.000Z
- Sen. Sanders, Bernard [I-VT] (I-VT), 2025-07-24T00:00:00.000Z
- Sen. Young, Todd [R-IN] (R-IN), 2025-07-24T00:00:00.000Z
- Sen. Welch, Peter [D-VT] (D-VT), 2025-07-24T00:00:00.000Z
- Sen. Risch, James E. [R-ID] (R-ID), 2025-07-24T00:00:00.000Z
- Sen. Hirono, Mazie K. [D-HI] (D-HI), 2025-07-24T00:00:00.000Z
- Sen. Cantwell, Maria [D-WA] (D-WA), 2025-07-24T00:00:00.000Z
- Sen. Husted, Jon [R-OH] (R-OH), 2025-07-24T00:00:00.000Z
- Sen. Crapo, Mike [R-ID] (R-ID), 2025-07-28T00:00:00.000Z
- Sen. King, Angus S., Jr. [I-ME] (I-ME), 2025-07-28T00:00:00.000Z
- Sen. Ricketts, Pete [R-NE] (R-NE), 2025-07-28T00:00:00.000Z
- Sen. Fetterman, John [D-PA] (D-PA), 2025-07-28T00:00:00.000Z
- Sen. Schmitt, Eric [R-MO] (R-MO), 2025-07-30T00:00:00.000Z
- Sen. Cortez Masto, Catherine [D-NV] (D-NV), 2025-07-30T00:00:00.000Z
- Sen. Sheehy, Tim [R-MT] (R-MT), 2025-09-09T00:00:00.000Z
- Sen. Coons, Christopher A. [D-DE] (D-DE), 2025-09-09T00:00:00.000Z
- Sen. Kennedy, John [R-LA] (R-LA), 2025-09-30T00:00:00.000Z
- Sen. Klobuchar, Amy [D-MN] (D-MN), 2025-09-30T00:00:00.000Z
- Sen. Fischer, Deb [R-NE] (R-NE), 2026-01-15T00:00:00.000Z
- Sen. Reed, Jack [D-RI] (D-RI), 2026-01-15T00:00:00.000Z
- Sen. Barrasso, John [R-WY] (R-WY), 2026-02-09T00:00:00.000Z
- Sen. Booker, Cory A. [D-NJ] (D-NJ), 2026-02-09T00:00:00.000Z
- Sen. Marshall, Roger [R-KS] (R-KS), 2026-07-14T00:00:00.000Z
- Sen. Baldwin, Tammy [D-WI] (D-WI), 2026-07-14T00:00:00.000Z
- Sen. Boozman, John [R-AR] (R-AR), 2026-07-14T00:00:00.000Z
- Sen. Blunt Rochester, Lisa [D-DE] (D-DE), 2026-07-14T00:00:00.000Z
- Sen. McCormick, David [R-PA] (R-PA), 2026-08-04T00:00:00.000Z

## Provisions PRIA read

- Tax breaks for S corporation sellers: benefit, high. If enacted, owners who sell S corporation stock to employee stock ownership plans (ESOPs) would be able to use an existing capital‑gains tax deferral starting on the date this Act is enacted. The bill would also remove a legal limit that narrowed that deferral, for sales after enactment. Together t…
- ESOP participants keep SBA eligibility: benefit, medium. If enacted, starting January 1 of the first calendar year after this Act is enacted, people who hold stock through an ESOP would be treated as directly owning their proportional share of stock for Small Business Act programs. That treatment would help businesses that become majority‑owned by an ESO…
- New federal offices for employee ownership: benefit, medium. If enacted, the Treasury would set up an S Corporation Employee Ownership Assistance Office within 90 days to provide education and technical help to S corporations about ESOPs. The Department of Labor would create an Advocate for Employee Ownership to give outreach, assist with disputes, advise on…

## Related bills

- 119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former United States Senator for the State of Kansas.
- 119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewellyn Kyl, former Senator for the State of Arizona.
- 119-sres-801: A resolution honoring the life and legacy of the Honorable Lindsey Olin Graham, a Senator from the State of South Carolina.
- 119-sres-755: A resolution honoring the life of the Honorable Donald W. Riegle, Jr., former Senator for the State of Michigan.
- 119-sres-739: A resolution honoring the life and legacy of John Seymour, the late Senator for the State of California.
- 119-sres-723: A resolution honoring the life of Dirk Arthur Kempthorne, former United States Senator for the State of Idaho.

## Sources
- [119-s-2461 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/2461)

## Related
- [119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former Uni…](https://policyrisk.com/legislation/119-sres-913)
- [119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewel…](https://policyrisk.com/legislation/119-sres-897)
- [119-sres-801: A resolution honoring the life and legacy of the Honorable Lindsey Olin Graham,…](https://policyrisk.com/legislation/119-sres-801)
- [119-sres-755: A resolution honoring the life of the Honorable Donald W. Riegle, Jr., former S…](https://policyrisk.com/legislation/119-sres-755)
- [119-sres-739: A resolution honoring the life and legacy of John Seymour, the late Senator for…](https://policyrisk.com/legislation/119-sres-739)
- [119-sres-723: A resolution honoring the life of Dirk Arthur Kempthorne, former United States…](https://policyrisk.com/legislation/119-sres-723)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-2461 (as of 2026-10-03).