Promotion and Expansion of Private Employee Ownership Act of 2025

This bill extends tax deferral for company stock sold to employee stock ownership plans (ESOPs) and fixes a rule that previously caused small businesses to lose government benefits after 49% ownership transferred to an ESOP. It creates a new Treasury Department office to provide education and technical assistance for companies adopting ESOPs, and establishes a Labor Department Advocate for Employee Ownership to coordinate federal efforts and promote employee ownership. These changes directly affect S corporations considering ESOPs, current ESOP-owned businesses, and small businesses seeking to maintain eligibility for government programs. The bill focuses on removing barriers to employee ownership through concrete tax, eligibility, and support mechanisms.