The Promotion and Expansion of Private Employee Ownership Act of 2025 aims to expand employee stock ownership plans in S corporations.

The bill amends the Internal Revenue Code to accelerate the full deferral of tax for certain sales of employer stock to an employee stock ownership plan sponsored by an S corporation. It also amends the Small Business Act to allow small businesses with an ESOP to remain eligible for small business programs. The bill establishes an Advocate for Employee Ownership within the Department of Labor to promote employee ownership and provide technical assistance.

The Promotion and Expansion of Private Employee Ownership Act of 2025 aims to expand employee stock ownership plans in S corporations.

The bill amends the Internal Revenue Code to accelerate the full deferral of tax for certain sales of employer stock to an employee stock ownership plan sponsored by an S corporation. It also amends the Small Business Act to allow small businesses with an ESOP to remain eligible for small business programs. The bill establishes an Advocate for Employee Ownership within the Department of Labor to promote employee ownership and provide technical assistance.