Reduction of Excess Business Holding Accrual Act

This bill modifies tax rules for businesses that purchase voting stock from employee stock ownership plans (ESOPs). It allows such stock - bought after January 1, 2020, from an ESOP where employees participate - to be counted as "outstanding" for foundation tax calculations, provided total ownership doesn’t exceed 49%. The rule excludes stock purchased during the first 10 years of an ESOP’s existence. It directly affects businesses using ESOPs to manage tax obligations related to employee stock ownership.