Promotion and Expansion of Private Employee Ownership Act of 2025
Sponsored By: Senator Steve Daines
Introduced
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.
Show full summary
- 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.
Bill Overview
Analyzed Economic Effects
3 provisions identified: 3 benefits, 0 costs, 0 mixed.
Tax breaks for S corporation sellers
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 these changes would expand and accelerate the tax deferral available to sellers in qualifying ESOP transactions.
ESOP participants keep SBA eligibility
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 ESOP keep eligibility for SBA loans, preferences, and similar programs. This change mainly affects small companies that convert ownership to employee stock plans and their worker‑owners.
New federal offices for employee ownership
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 regulations, and report to Congress each year. Congress would be asked to provide funds the Advocate needs to do this work.
Sponsors & CoSponsors
Sponsor
Steve Daines
MT • R
Cosponsors
Maggie Hassan
NH • D
Sponsored 7/24/2025
Marsha Blackburn
TN • R
Sponsored 7/24/2025
Tina Smith
MN • D
Sponsored 7/24/2025
Chuck Grassley
IA • R
Sponsored 7/24/2025
Chris Van Hollen
MD • D
Sponsored 7/24/2025
Thomas Tillis
NC • R
Sponsored 7/24/2025
Bernie Sanders
VT • I
Sponsored 7/24/2025
Todd Young
IN • R
Sponsored 7/24/2025
Peter Welch
VT • D
Sponsored 7/24/2025
James Risch
ID • R
Sponsored 7/24/2025
Mazie Hirono
HI • D
Sponsored 7/24/2025
Maria Cantwell
WA • D
Sponsored 7/24/2025
Jon Husted
OH • R
Sponsored 7/24/2025
Mike Crapo
ID • R
Sponsored 7/28/2025
Angus King
ME • I
Sponsored 7/28/2025
Pete Ricketts
NE • R
Sponsored 7/28/2025
John Fetterman
PA • D
Sponsored 7/28/2025
Eric Schmitt
MO • R
Sponsored 7/30/2025
Catherine Cortez Masto
NV • D
Sponsored 7/30/2025
Tim Sheehy
MT • R
Sponsored 9/9/2025
Christopher Coons
DE • D
Sponsored 9/9/2025
John Kennedy
LA • R
Sponsored 9/30/2025
Amy Klobuchar
MN • D
Sponsored 9/30/2025
Deb Fischer
NE • R
Sponsored 1/15/2026
John Reed
RI • D
Sponsored 1/15/2026
John Barrasso
WY • R
Sponsored 2/9/2026
Cory Booker
NJ • D
Sponsored 2/9/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govRelated Bills
SRES255 — A resolution honoring the life, achievements, and legacy of former United States Senator Christopher "Kit" Bond of Missouri.
Honors the life and public service of Christopher Samuel "Kit" Bond. The resolution summarizes his career as Missouri State Auditor, two-term Governor, and four-term U.S. Senator and highlights his work on housing, Parents as Teachers, literacy, care for women and children, support for farmers, and national defense. It records his death on May 13, 2025, notes survivors Linda, his son Sam, and two grandchildren, and directs transmission of the resolution to his family and the House and adjournment as a mark of respect.
SRES159 — A resolution honoring the life of the Honorable John Bennett Johnston, Jr., former Senator for the State of Louisiana.
Honors the life and public service of John Bennett Johnston Jr., a Louisiana leader who served in the U.S. Senate from 1972 to 1997. Born June 10, 1932, in Shreveport, he attended C. E. Byrd High School, Washington and Lee University, the U.S. Military Academy at West Point, and LSU Law, graduating with distinction and joining the Order of the Coif in 1956. He served as a First Lieutenant in the Army Judge Advocate General's Corps in Germany from 1956 to 1959. Johnston served in the Louisiana House and State Senate before his long Senate career, where he chaired the Energy and Natural Resources Committee from 1987 to 1995 and helped shape national energy policy, flood control, hurricane protection, offshore oil and gas expansion, and natural gas deregulation. He championed conservation, helped preserve more than 120,000 acres of Louisiana inland wetlands, and helped establish the New Orleans Jazz National Historical Park and the Cane River Creole National Historical Park. Johnston lived to age 92 and is remembered for integrity, distinction, and committed public service.
SRES148 — A resolution honoring the life of the Honorable Alan K. Simpson, former Senator for the State of Wyoming.
This resolution honors the life and public service of Alan K. Simpson. It summarizes his Wyoming roots, Army service, legal career, long tenure in the Wyoming legislature and U.S. Senate, leadership on veterans' issues and fiscal reform, receipt of the Presidential Medal of Freedom, and civic work with Wyoming institutions. The resolution directs the Secretary of the Senate to transmit an enrolled copy to his family and to the House and states that the Senate shall adjourn as a further mark of respect.
SRES585 — A resolution honoring the life, achievements, and legacy of Ben Nighthorse Campbell.
Honors the life and legacy of Ben Nighthorse Campbell. A Korean War Air Force veteran, Olympic judo competitor, jeweler and rancher, Colorado legislator, U.S. Representative and U.S. Senator, he chaired the Senate Committee on Indian Affairs and authored landmark measures including the National Museum of the American Indian, Black Canyon of the Gunnison park designation, the Sand Creek Massacre National Historic Site, and water projects for the Southern Ute and Ute Mountain Ute tribes. The resolution asks the Secretary of the Senate to transmit an enrolled copy to his family and marks his memory with a Senate recess as a further sign of respect.
SRES19 — A resolution honoring the life and legacy of President Jimmy Carter and commending President Jimmy Carter for his life-long career of public service, humanitarian leadership, diplomacy, and courageous advocacy.
This resolution mourns the passing and honors the life and legacy of former President Jimmy Carter, highlighting his lifelong public service and humanitarian leadership. It recounts his 1924 birth in Plains, Georgia, Naval Academy graduation in 1946, service as Georgia governor and the 39th President, and key diplomatic achievements including the Camp David Accords and SALT II. It notes his role in creating the Departments of Education and Energy, founding The Carter Center, decades of Habitat for Humanity work that helped build about 4,400 homes, and awards including the Nobel Peace Prize.
SRES201 — A resolution expressing support for the designation of the week of May 4, 2025, through May 10, 2025, as "National Small Business Week" to celebrate the contributions of small businesses and entrepreneurs in every community in the United States.
Designates May 4–10, 2025, as National Small Business Week to honor the contributions of small businesses and entrepreneurs across the United States. It notes there are more than 34.5 million small businesses that support over 59 million jobs and applauds the resilience and achievements of small business owners and their employees.
Take It Personal
Get Your Personalized Policy View
Create a free account to save research, track policy impacts, and unlock your personalized versions of these pages.
Already have an account? Sign in