H.R.4577 - Expanding Employee Ownership Act of 2016114th Congress (2015-2016)
|Sponsor:||Rep. Rohrabacher, Dana [R-CA-48] (Introduced 02/12/2016)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 02/12/2016 Referred to the House Committee on Ways and Means. (All Actions)|
This bill has the status Introduced
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Summary: H.R.4577 — 114th Congress (2015-2016)All Information (Except Text)
Introduced in House (02/12/2016)
Expanding Employee Ownership Act of 2016
This bill amends the Internal Revenue Code to exclude from the gross income of an employee: (1) shares of employer securities received in a qualified employee stock distribution as compensation for services that do not exceed the lowest number of employer securities received by any employee in such distribution; (2) any gain on such securities if held by an employee for not less than 10 years; and (3) in the case of any qualified disposition of an employer security that meets such 10-year holding requirement, any gain on so much stock acquired during the 60-day period beginning on the date of such disposition as does not exceed the fair market value of the employer security so disposed.
Employers may claim a tax deduction for the fair market value of securities transferred in a stock distribution. Employees must recapture in gross income the amount of employer securities excluded from gross income if such securities are disposed of within five years after receipt.