Summary: H.R.1592 — 105th Congress (1997-1998)All Information (Except Text)

There is one summary for H.R.1592. Bill summaries are authored by CRS.

Shown Here:
Introduced in House (05/14/1997)

ESOP Promotion Act of 1997 - Repeals provisions of the Small Business Job Protection Act of 1996 which made certain employee stock ownership plans (ESOP) benefits inapplicable to S corporations (certain small business corporations).

Allows ESOP closely-held corporate sponsors to pay estate tax if an estate transferred the stock of the corporation to an ESOP.

Permits ESOP dividends to be reinvested without losing the dividend deduction.

Excludes from gross income transfers of qualified securities in connection with the performance of services if such securities are sold to an ESOP within 60 days of the taxable event.

Allows for a qualified gratuitous transfer of remainder interest in qualified employer securities to an ESOP following the termination of payments to a charitable remainder annuity trust or a charitable remainder unitrust.

Provides that securities acquired by an ESOP in a qualified gratuitous transfer allocated to any person who is related to the decedent or to any person who is a five percent shareholder be treated as having been distributed.