A bill to amend the Internal Revenue Code of 1986 to restrict the partial exclusion from income of interest on loans used to acquire employer securities to cases where employees receive a significant ownership interest in a corporation, and for other purposes.

Summary

Amends the Internal Revenue Code to restrict the partial exclusion from income of interest on loans used to acquire employer securities to cases where the employee stock ownership plan owns at least 30 percent of: (1) each class of outstanding stock of the issuing corporation; or (2) the total value of all outstanding stock of the corporation. Limits securities acquisition loans to terms of 15 years and requires voting rights for members of the plan for the acquired stock. Imposes an excise tax on: (1) the disposition of employer securities within three years of acquisition; and (2) any disposition of such securities before allocation to participant accounts, where the proceeds of disposition are not allocated to such accounts.

This text is taken from the official record. PoliticalRepo does not editorialize.

Timeline

1. 12 July 1989

   Introduced

   Read twice and referred to the Committee on Finance.

   Source: IntroReferral

2. 12 July 1989

   Introduced

   Introduced in Senate

   Source: IntroReferral

3. 19 July 1989

   Committee

   Subcommittee on Taxation. Hearings held. Hearings printed: S.Hrg. 101-593.

   Source: Committee

Votes

No vote records are attached yet.

Versions

• Introduced in Senate · undated · Official file

Documents

2 official files

• Introduced in Senate (text)

  Introduced in Senate · EN

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 12 July 1989

  Open at official source

Sponsors

• Sen. Bentsen, Lloyd M. [D-TX] · D · Sponsor
• Sen. Gorton, Slade [R-WA] · R · Cosponsor
• · ssfi00 · Standing

Related records

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