Employee Ownership Promotion and Improvement Act of 1993

Summary

TABLE OF CONTENTS: Title I: Investment Incentives Title II: Incentives to Employees Title III: State Programs to Encourage Employee Ownership Employee Ownership Promotion and Improvement Act of 1993 - Title I: Investment Incentives - Amends the Internal Revenue Code to exclude from gross income, for taxpayers other than corporations, a percentage of the gain from the sale or exchange of qualified stock of an employee-owned business held for at least five years. Treats such exclusion as an item of tax preference. Makes the securities of publicly traded companies eligible for the deferral of capital gains tax on the sale of stock to employee stock ownership plans (ESOP) or certain cooperatives. Removes ESOP dividends as a tax preference item for calculation of corporate alternative minimum tax. Title II: Incentives to Employees - Allows an ESOP to include certain characteristics of other pension plans, such as cash or deferred arrangements and matching contributions. Increases the limitation on elective deferrals for contributions to ESOPs. Excludes from gross income 50 percent of the lump sum distribution from ESOPs. Excludes from gross income capital gain on an employee's investment in employer securities if: (1) the security is originally issued to or purchased by an employee and held for at least ten years; (2) the employee is at least 55 years old; and (3) the security is sold within one year after separation. Allows employee-owned businesses to take a deduction equal to the compensation element of incentive stock options for the year in which the option is exercised, while allowing the recipient to defer taxes until the stock is sold. Allows S corporations to sponsor ESOPs. Title III: State Programs to Encourage Employee Ownership - Directs the Secretary of Labor to establish a program to facilitate the establishment of State programs to foster increased employee ownership and greater employee participation in business decisionmaking. Requires the Secretary to establish the Office of Employee Ownership and Participation to support existing state programs and facilitate new state programs, including: (1) making of matching Federal grants; (2) acting as a clearinghouse for information; and (3) facilitating information exchange and promoting State programs. Authorizes appropriations.

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Timeline

1. 20 November 1993

   Introduced

   Read twice and referred to the Committee on Finance.

   Source: IntroReferral

2. 20 November 1993

   Introduced

   Sponsor introductory remarks on measure. (CR S16769-16770, S16774-16775)

   Source: IntroReferral

3. 20 November 1993

   Introduced

   Introduced in Senate

   Source: IntroReferral

Votes

No vote records are attached yet.

Versions

• Introduced in Senate · 20 November 1993 · Official file

Documents

3 official files

• Introduced in Senate (text)

  Introduced in Senate · EN · 20 November 1993

  ViewDownloadOpen at official source

• Introduced in Senate (PDF)

  Introduced in Senate · EN · 20 November 1993

  ViewDownloadOpen at official source

• Introduced in Senate

  summary · EN · 20 November 1993

  Open at official source

Sponsors

• Sen. Bingaman, Jeff [D-NM] · D · Sponsor
• · ssfi00 · Standing

Related records

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