3.0.0 3152 2023-01-11T13:33:16Z 2023-01-11T13:33:16Z Senate S 2016-07-11 114 ssfi00 Finance Committee Senate Standing Referred to 2016-07-11T21:06:18Z Empowering Employees through Stock Ownership Act 114 5719 HR 2016-09-26 Received in the Senate. Identical bill CRS Retirement Enhancement and Savings Act of 2016 114 3471 S 2016-11-16 Placed on Senate Legislative Calendar under General Orders. Calendar No. 670. Related bill CRS 2016-07-11 ssfi00 Finance Committee Senate Read twice and referred to the Committee on Finance. IntroReferral 2016-07-11 Introduced in Senate IntroReferral 10000 9 Library of Congress W000805 Sen. Warner, Mark R. [D-VA] Mark Warner D VA R. N H001041 Sen. Heller, Dean [R-NV] Dean Heller R NV 2016-07-11 True Taxation Corporate finance and management Employee benefits and pensions Income tax deferral Income tax exclusion Securities Wages and earnings Taxation 00 2016-07-11 Introduced in Senate 2016-09-20T13:56:12Z Empowering Employees through Stock Ownership Act

This bill amends the Internal Revenue Code to allow an employee to elect to defer, for income tax purposes, income attributable to certain stock transferred to the employee by an employer.

The employee may defer the inclusion of income from the stock until the year that includes the earliest of the dates on which:

  • the stock is sold, exchanged, or otherwise transferred;
  • the employee becomes an excluded employee;
  • stock of the corporation becomes readily tradable on an established securities market;
  • seven years has passed after the rights of the employee in the stock are transferrable or are not subject to a substantial risk of forfeiture, whichever occurs earlier; or
  • the employee elects to include the amount in income.

The stock must meet specified requirements and be transferred to the employee from an eligible corporation in connection with the performance of services as an employee.

A corporation is eligible if: (1) no stock of the corporation is readily tradable on an established securities market during the year or any preceding year, and (2) it has a written plan under which at least 80% of all employees have the same rights and privileges to receive stock for the year.

Employees are excluded if they are or have been: (1) a 1% owner, the chief executive officer, or the chief financial officer of the corporation; (2) a family member of the specified individuals; (3) or one of the four highest compensated officers of the corporation.

The corporation transferring stock must notify employees regarding the option of deferring income and meet specified withholding and reporting requirements.

]]> Empowering Employees through Stock Ownership Act Display Title Empowering Employees through Stock Ownership Act Short Titles as Introduced Empowering Employees through Stock Ownership Act Official Title as Introduced A bill to amend the Internal Revenue Code of 1986 to modify the tax treatment of certain equity grants. Introduced in Senate 2016-07-11T04:00:00Z https://www.govinfo.gov/content/pkg/BILLS-114s3152is/xml/BILLS-114s3152is.xml 2016-07-11 Read twice and referred to the Committee on Finance. text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. Congressional Research Service, Library of Congress This file contains bill summaries and statuses for federal legislation. A bill summary describes the most significant provisions of a piece of legislation and details the effects the legislative text may have on current law and federal programs. Bill summaries are authored by the Congressional Research Service (CRS) of the Library of Congress. As stated in Public Law 91-510 (2 USC 166 (d)(6)), one of the duties of CRS is "to prepare summaries and digests of bills and resolutions of a public general nature introduced in the Senate or House of Representatives". For more information, refer to the User Guide that accompanies this file.