An Act to promote employee ownership

This bill (HD 999) creates a tax deduction for small businesses that sell ownership to employee stock ownership plans (ESOPs). It allows businesses with fewer than 500 employees to deduct capital gains from selling company shares to an ESOP that owns at least 49% of the business, provided the business sponsors the ESOP itself. The deduction applies to gains from the sale of employer securities to qualifying ESOPs, reducing taxable income for these businesses. This policy directly affects small, private companies seeking to transition ownership to employees through ESOPs.