,i  #aaith ,,congress  #ast ,session    
,h4 ,r4 #bjad  ,,in ,,the ,,house ,,of  
,,representatives  ,march #aj1 #bjbe,mr4
 ,steube introduced the following bill2 
which was referred to the ,committee on 
,ways and ,means  ,a ,,bill  ,to amend  
the ,internal ,revenue ,code of #aihf   
for purposes of the tax on private      
foundation excess business holdings to  
treat as outstanding any employee-owned 
stock purchased by a business enterprise
 pursuant to certain employee stock     
ownership retirement plans4  #a4 ,short 
title ,this ,act may be cited as the    
,reduction of ,excess ,business ,holding
 ,accrual ,act4  #b4 ,certain purchases 
of employee-owned stock disregarded for 
purposes of foundation tax on excess    
business holdings  7a7 ,in general      
,section #didc7;c77#d77;,a7 of the      
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new clauses3  7v7 ,for        
purposes of clause 7i71 subparagraph    
7,d71 and paragraph 7#b71 any voting    

stock which-- 7,i7 is not readily       
tradable on an established securities   
market1  7,,ii7 is purchased by the     
business enterprise on or after ,january
 #a1 #bjbj1 from an employee stock      
ownership plan 7as defined in section   
#dige7;e77#g77 in which employees of    
such business enterprise participate1 in
 connection with a distribution from    
such plan1 and  7,,iii7 is held by the  
business enterprise as treasury stock1  
cancelled1 or retired1  shall be treated
 as outstanding voting stock1 but only  
to the extent so treating such stock    
would not result in permitted holdings  
exceeding #di percent 7determined       
without regard to this clause74 ,the    
preceding sentence shall not apply with 
respect to the purchase of stock from a 
plan during the #aj-year period         
beginning on the date the plan is       
established4  7vi7 ,section             
#didc7;c77#d77;,a77ii7 shall not apply  
with respect to any decrease in the     
percentage of holdings in a business    

enterprise by reason of the application 
of clause 7v74  4  7b7 ,effective date  
,the amendments made by this section    
shall apply to taxable years ending     
after the date of the enactment of this 
,act and to purchases by a business     
enterprise of voting stock in taxable   
years beginning after ,december #ca1    
#bjai4