Promotion and Expansion of Private Employee Ownership Act of 2023

The Promotion and Expansion of Private Employee Ownership Act of 2023 aims to increase employee ownership in S corporations by making it easier for companies to adopt Employee Stock Ownership Plans (ESOPs). Key provisions include extending tax deferral for sales of company stock to ESOPs, creating a Treasury Department office to provide technical assistance for ESOPs, and amending small business laws to ensure ESOP-owned businesses remain eligible for small business programs. The bill also establishes a dedicated Advocate for Employee Ownership within the Department of Labor to promote ESOP adoption, provide education, and help resolve disputes related to ESOPs. This legislation directly affects S corporations considering employee ownership transitions, their employees who would become partial owners, and small businesses that want to maintain eligibility for small business programs after an ESOP transition. The bill seeks to expand a model that studies show provides employees with retirement savings and greater job stability compared to traditional companies.