,i #aac? ,,congress #b;d ,session ,h4 ,r4 #dhcg ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,june #aa1 #bjad ,mr4 ,rei*]t 7= himself1 ,mr4 ,k9d1 ,mr4 ,tib]i1 ,mr4 ,b\/any1 ,mr4 ,pauls51 ,mr4 ,neal1 ,mr4 ,pascrell1 & ,mr4 ,blum5au]7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means1 & 9 addition to ! ,committees on ,education & ! ,work=ce & ,small ,bus9ess1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf & ! ,small ,bus9ess ,act to exp& ! availability ( employee /ock own]%ip plans 9 ,s corporations1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,promotion & ,expansion ( ,private ,employee ,own]%ip ,act ( #bjad4 #b4 ,f9d+s ,congress f9ds t-- 7#a7 on ,janu>y #a1 #aiih--ne>ly #be ye>s aft] ! ,employee ,retirem5t ,income ,security ,act ( #aigd 0 enact$ & ! employee /ock own]%ip plan 7h]eaft] 9 ?is section ref]r$ to z an ,,esop7 0 creat$--employees 7 fir/ p]mitt$ to be own]s ( sub*apt] ,s corporations pursuant to ! ,small ,bus9ess ,job ,protection ,act ( #aiif 7,public ,law #ajd-ahh72 7#b7 ) ! passage ( ! ,taxpay] ,relief ,act ( #aiig 7,public ,law #aje-cd71 ,congress design$ inc5tives to enc\rage bus9esses to become ,,esop-own$ ,s corporations2 7#c7 s9ce t "t1 sev]al ?\s& companies h become ,,esop-own$ ,s corporations1 creat+ an own]%ip int]e/ = sev]al million ,am]icans 9 companies 9 e ,/ate 9 ! c\ntry1 9 indu/ries rang+ f heavy manufactur+ to te*nology developm5t to s]vices2 7#d7 :ile e/imates %[ t #dj p]c5t ( work+ ,am]icans h no =mal retirem5t acc\nt at all1 e ,unit$ ,/ates work] :o is an employee-own] ( an ,s corporation company ?r\gh an ,,esop has a valuable qualifi$ retirem5t sav+s acc\nt2 7#e7 rec5t /udies h %[n t employees ( ,,esop-own$ ,s corporations enjoy great] job /ability ?an employees ( comp>able companies2 7#f7 /udies also %[ t employee-own]s ( ,s corporation ,,esop companies h amass$ mean+ful retirem5t sav+s ?r\gh _! ,s ,,esop acc\nts t w give !m ! means to retire ) dignity2 7#g7 "u ! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fca et seq47 & ! regulations promulgat$ by ! ,adm9i/rator ( ! ,small ,bus9ess ,adm9i/ration1 a small bus9ess conc]n t 0 eligible "u ! ,small ,bus9ess ,act = ! num]\s pref]5ces ( ! ,act is d5i$ treatm5t z a small bus9ess conc]n aft] an ,,esop acquires m ?an #di p]c5t ( ! bus9ess1 ev5 if ! numb] ( employees1 ! rev5ue ( ! small bus9ess conc]n1 & ! racial1 g5d]1 or o!r crit]ia us$ "u ! ,act to det]m9e :e!r ! small bus9ess conc]n is eligible = b5efits "u ! ,act rema9 ! same1 solely because ( ! acquisition by ! ,,esop2 & 7#h7 x is ! goal ( ,congress to bo? pres]ve & fo/] employee own]%ip ( ,s corporations ?r\gh ,e,s,o,ps4 #c4 ,def]ral ( tax = c]ta9 sales ( employ] /ock to employee /ock own]%ip plan sponsor$ by ,s corporation 7a7 ,9 g5]al ,subp>agraph 7,a7 ( section #ajdb7;c77#a7 ( ! ,int]nal ,rev5ue ,code ( #aihf 7def9+ qualifi$ securities7 is am5d$ by /rik+ dome/ic ,c corporation & ins]t+ dome/ic corporation4 7b7 ,effective date ,! am5dm5t made by subsection 7a7 %all apply to sales aft] ! date ( ! enactm5t ( ?is ,act4 #d4 ,d$uction = int]e/ on loan to f9ance pur*ase ( employ] securities by an employee /ock own]%ip plan sponsor$ by an ,s corporation 7a7 ,9 g5]al ,"p ,,vi ( sub*apt] ,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #aii ! foll[+ new section3 #bjj4 ,int]e/ on c]ta9 loans = ! pur*ase ( employ] securities by an employee /ock own]%ip plan sponsor$ by an ,s corporation 7a7 ,9 g5]al ,!re %all be all[$ z a d$uction an am\nt equal to #ej p]c5t ( ! int]e/ receiv$ dur+ ! taxable ye> by a bank 7)9 ! mean+ ( section #eha7 ) respect to a qualifi$ securities acquisition loan4 7b7 ,qualifi$ securities acquisition loan 7#a7 ,9 g5]al ,= purposes ( ?is section1 ! t]m qualifi$ securities acquisition loan means-- 7,a7 any loan to an employee /ock own]%ip plan sponsor$ by an ,s corporation to ! ext5t t ! proce$s are us$ to acquire employ] securities = ! plan1 & 7,b7 any loan to an ,s corporation t sponsors an employee /ock own]%ip plan to ! ext5t t ! proce$s ( su* loan are loan$ to ! employee /ock own]%ip plan to acquire employ] securities = ! plan4 ,= purposes ( ?is p>agraph1 ! t]m employ] securities has ! mean+ giv5 su* t]m by section #dji7l74 7#b7 ,t]ms ,applicable to c]ta9 qualifi$ securities acquisition loans ,= purposes ( p>agraph 7#a77;,b71 ! t]m qualifi$ securities acquisition loan %all n include any loan to ! ,s corporation unless ! loan to ! employee /ock own]%ip plan has repaym5t t]ms :i* are sub/antially simil> to ! t]ms ( ! loan to ! ,s corporation4 7#c7 ,treatm5t ( ref9anc+s ,! t]m qualifi$ securities acquisition loan %all include any loan :i* is 7or is "p ( a s]ies ( loans7 us$ to ref9ance a loan describ$ 9 p>agraph 7#a7 7aft] ! application ( p>agraph 7#b774 7#d7 ,plan mu/ hold m ?an #ej p]c5t ( /ock aft] acquisition or transf] 7,a7 ,9 g5]al ,a loan %all n be treat$ z a qualifi$ securities acquisition loan = purposes ( ?is section unless1 imm$iately aft] an acquisition ( employ] securities ref]r$ to 9 p>agraph 7#a71 ! employee /ock own]%ip plan owns m ?an #ej p]c5t ( ! out/&+ /ock ( ! ,s corporation4 7,b7 ,failure to reta9 m9imum /ock int]e/ 7i7 ,9 g5]al ,subsection 7a7 %all n apply to any int]e/ receiv$ ) respect to a qualifi$ securities acquisition loan :i* is allocable to any p]iod dur+ :i* ! employee /ock own]%ip plan does n own /ock meet+ ! requirem5ts ( subp>agraph 7,a74 7ii7 ,exception ,to ! ext5t provid$ by ! ,secret>y1 clause 7i7 %all n apply to any p]iod if1 )9 #ij days ( ! fir/ date on :i* ! failure occurr$ 7or su* long] p]iod n 9 excess ( #ahj days z ! ,secret>y may prescribe71 ! plan acquires /ock :i* results 9 its meet+ ! requirem5ts ( subp>agraph 7,a74 7,c7 ,/ock ,= purposes ( subp>agraph 7,a71 ! ,secret>y may provide t w>rants1 options1 contracts to acquire /ock1 conv]tible debt int]e/s & o!r simil> int]e/s be treat$ z /ock = #a or m purposes "u subp>agraph 7,a74 7c7 ,employee /ock own]%ip plan ,= purposes ( ?is section1 ! t]m employee /ock own]%ip plan has ! mean+ giv5 to su* t]m by section #dige7;e77#g74 4 7b7 ,cl]ical am5dm5t ,! table ( sections = "p ,,vi ( sub*apt] ,b ( *apt] #a ( su* ,code is am5d$ by ins]t+ aft] ! item relat+ to section #aii ! foll[+ new item3 ,sec4 #bjj4 ,int]e/ on c]ta9 loans = ! pur*ase ( employ] securities by an employee /ock own]%ip plan sponsor$ by an ,s corporation4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to int]e/ accru$ on loans made aft] ! date ( ! enactm5t ( ?is ,act4 #e4 ,dep>tm5t ( ! ,treasury ,te*nical ,assi/ance ,(fice 7a7 ,e/abli%m5t requir$ ,be=e ! end ( ! #ij-;day p]iod beg9n+ on ! date ( enactm5t ( ?is ,act1 ! ,secret>y ( ! ,treasury %all e/abli% ! ,s ,corporation ,employee ,own]%ip ,assi/ance ,(fice to fo/] increas$ employee own]%ip ( ,s corporations4 7b7 ,duties ( ! (fice ,! ,s ,corporation ,employee ,own]%ip ,assi/ance ,(fice %all provide-- 7#a7 education & outrea* to in=m companies & individuals ab\t ! possibilities & b5efits ( employee own]%ip ( ,s corporations2 & 7#b7 te*nical assi/ance to assi/ ,s corporations 9 sponsor+ employee /ock own]%ip plans4 #f4 ,small bus9ess & employee /ock own]%ip 7a7 ,9 g5]al ,! ,small ,bus9ess ,act 7#ae ,u4,s4,c4 #fca et seq47 is am5d$-- 7#a7 by r$esignat+ section #dg z section #dh2 & 7#b7 by ins]t+ aft] section #df ! foll[+3 #dg4 ,employee /ock own]%ip plans 7a7 ,def9itions ,9 ?is section-- 7#a7 ! t]m ,,esop means an employee /ock own]%ip plan1 z def9$ 9 section #dige7;e77#g7 ( ! ,int]nal ,rev5ue ,code ( #aihf1 z am5d$2 & 7#b7 ! t]m ,,esop bus9ess conc]n means a bus9ess conc]n t 0 a small bus9ess conc]n eligible = a loan or to p>ticipate 9 a contract+ assi/ance or bus9ess developm5t program "u ?is ,act be=e ! date on :i* m ?an #di p]c5t ( ! bus9ess conc]n 0 acquir$ by an ,,esop4 7b7 ,cont9u$ eligibility ,9 det]m9+ :e!r an ,,esop bus9ess conc]n qualifies z a small bus9ess conc]n = purposes ( a loan1 pref]5ce1 or o!r program "u ?is ,act1 ea* ,,esop p>ticipant %all be treat$ z directly own+ 8 or h] proportionate %>e ( ! /ock 9 ! ,,esop bus9ess conc]n own$ by ! ,,esop4 4 7b7 ,effective date ,! am5dm5ts made by ?is section %all take effect on ,janu>y #a ( ! fir/ cal5d> ye> beg9n+ aft] ! date ( ! enactm5t ( ?is ,act4