S.1416

The Reduction of Excess Business Holding Accrual Act amends the Internal Revenue Code to modify the tax on private foundation excess business.

The Reduction of Excess Business Holding Accrual Act amends the Internal Revenue Code to modify the tax on private foundation excess business holdings. Specifically, it treats as outstanding any employee-owned stock purchased by a business enterprise pursuant to certain employee stock ownership retirement plans. This applies to voting stock that is not readily tradable on an established securities market, purchased on or after January 1, 2020, and held by the business enterprise as treasury stock, cancelled, or retired.