– Legislation sponsored by Representative Daryl Metcalfe (R-Butler) to further enhance the many benefits and advantages that Employee Stock Ownership Plans (ESOPs) have for Commonwealth family-owned businesses, employees, communities and the economy was reported out of the House Finance Committee on Tuesday.
Previously advanced 130-67 by the House in December 2019, House Bill 285
seeks to put Pennsylvania on par with the rest of the nation by applying certain provisions of the federal tax code at the state level and allowing certain business owners who sell their stock to an ESOP to indefinitely defer and possibly eliminate the capital gains taxes normally collected at the sale of the business.
“Now even more critical for economic survival during China Joe Biden’s tsunami of job-killing tax and regulatory policies, ESOPs serve the dual purpose of delivering real retirement savings and stock ownership for employees, as well as the potential of a tax-free exit strategy to keep businesses in Pennsylvania,” said Metcalfe. “Additionally, employees contribute absolutely nothing out of pocket or paycheck for this outstanding benefit. The purpose of my legislation is to increase the incentive for family-owned businesses and other employers to sell their business to an ESOP rather than outsiders whose intentions and the fate of current employees are nearly always unknown.”
According to the latest data from the National Center for Employee Ownership
, there are more than 6,400 ESOPs nationwide, holding total assets of more than $1.6 trillion.
House Bill 285 now advances to the full House for consideration.
Representative Daryl Metcalfe
Pennsylvania House of Representatives
Media Contact: Ty McCauslin
RepMetcalfe.com / Facebook.com/RepMetcalfe