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S 1416119th CongressIntroduced
Reduction of Excess Business Holding Accrual Act
Introduced: Oct 28, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs
Amends tax code to treat certain employee-owned stock as outstanding for private foundation excess business holdings calculations.
Key Points
- 1Modifies Section 4943(c)(4)(A) of Internal Revenue Code
- 2Treats ESOP-purchased stock as outstanding voting stock
- 3Applies to non-readily tradable stock purchased after January 1, 2020
- 4Limits application to prevent exceeding 49% holding threshold
- 5Excludes stock purchased during first 10 years of ESOP
- 6Effective for taxable years after enactment
Impact Areas
Private foundationsEmployee Stock Ownership Plans (ESOPs)Tax-exempt organization regulationsBusiness taxation
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