Promotion and Expansion of Private Employee Ownership Act of 2025

Key Points

• Creates stronger tax breaks for business owners who sell company stock to an employee ownership plan at an S corporation, by removing a time limit and other restrictions.
• Requires the Treasury Department to set up an office within 90 days to educate companies and offer hands-on help for setting up employee ownership plans.
• Changes small-business rules so a company can keep small-business program eligibility even after an employee ownership plan owns more than 49%, as long as it otherwise still qualifies.
• Creates a Labor Department “Advocate for Employee Ownership” to answer questions, help resolve disputes, and report yearly to Congress on barriers and progress.
• For everyday workers, this could mean more chances to build retirement savings through owning part of the company where they work, if more employers choose this path.