PlainBillCongress, translated.Legislation. Context. Public interest.Referred to the House Committee on Ways and Means.
Congressional Research Service
Version 00 · Introduced in House · Mar 10, 2025
Reduction of Excess Business Holding Accrual Act
This bill treats certain stock repurchased by a corporation from an employee stock ownership plan (ESOP) as outstanding voting stock for purposes of the federal excise tax imposed on a private foundation’s excess business holdings. Thus, a private foundation may exclude such stock in calculating present holdings in a corporation and liability for the excise tax. (Exceptions apply.)
As background, a federal excise tax is imposed on a private foundation that owns more than 20% of the voting stock in a corporation, reduced by the percentage of voting stock held by all disqualified persons (excess business holdings). However, a private foundation with excess business holdings on May 26, 1969 (grandfathered private foundation) may own a greater percentage of voting stock in certain circumstances.
Showing the opening paragraphs of the official summary.
Under the bill, stock is treated as outstanding voting stock if such stock is
not readily tradable on an established securities market;
repurchased from an ESOP on or after January 1, 2020; and
held by the corporation as treasury stock, cancelled, or retired.
However, such stock is not treated as outstanding voting stock if it is repurchased within the first 10 years of establishing the ESOP or, as a result of the repurchase, the permitted holdings of the private foundation would exceed 49% of the voting stock in the corporation.
Finally, under the bill, such stock does not reduce the percentage of voting stock a grandfathered private foundation may own.
People & committees
Rep. Steube, W. Gregory [R-FL-17] · R–FL
Legislative record
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Referred to the House Committee on Ways and Means.
Introduced in House
Introduced in House
Primary sources
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Source last updated: Jan 14, 2026. Consult Congress.gov for the current record.
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