Sen. Steve Daines
Recently introduced bipartisan legislation offered by U.S. Sen. Steve Daines (R-MT) aims to encourage Americans to save money toward retirement.
“America is the land of opportunity, and our bipartisan bill will help protect and preserve the American dream for Montanans from all walks of life,” Sen. Daines said on Aug. 3.
The senator on July 26 signed on as the lead original cosponsor of the Promotion and Expansion of Private Employee Ownership Act, S. 2515, which is sponsored by U.S. Sen. Ben Cardin (D-MD) and 20 other original cosponsors, including U.S. Sens. Todd Young (R-IN), Bill Cassidy (R-LA), Marsha Blackburn (R-TN), Susan Collins (R-ME), and Jerry Moran (R-KS).
If enacted, S. 2515 would strengthen the growth of S corporations that are owned by Employee Stock Ownership Plans (S-ESOP) in an effort to make it easier for middle class Americans to invest toward retirement, according to a bill summary provided by Sen. Daines’ office.
“While Montana workers and businesses struggle to navigate this challenging economy, it’s important we strengthen creative ways to help folks grow their wealth and reach financial security,” said Sen. Daines. “ESOPs help expand ownership of the economy to middle class Montanans and make it easier for folks to invest toward a comfortable retirement.”
Additionally, S. 2515 would eliminate barriers that businesses and their owners currently face in establishing a new S-ESOP or expanding the employee-ownership stake in an S corporation, the summary says.
For instance, S. 2515 would incentivize S Corporation owners to sell their stock to an ESOP by providing deferral treatment for contributions of S Corporation stock to an ESOP as long as certain reinvestment requirements are met, the summary says.
Among other provisions, the bill also would provide technical assistance for companies that may be interested in forming an S-ESOP; ensure small businesses that become ESOPs retain their SBA certification; and create the position of an “Employee Ownership Advocate” at the U.S. Department of Labor to support the formation and success of employee ownership, states the summary.
The U.S. Senate Finance Committee, on which Sen. Daines serves, is considering the measure.