Reduction of Excess Business Holding Accrual Act

HR 2014 modifies the tax code to change how certain stock purchases from employee stock ownership plans (ESOPs) are counted toward a business's tax obligations. It treats stock bought from an ESOP (where employees participate) by the business itself as "outstanding voting stock" for tax calculations, but only if this doesn't push holdings above 49%. This specifically applies to stock purchased on or after January 1, 2020, from ESOP distributions, and excludes purchases during the first 10 years of an ESOP's existence. The bill directly affects businesses using ESOPs that repurchase employee-owned shares, altering how these transactions impact their tax liability under Section 4943.