Reduction of Excess Business Holding Accrual Act

This bill changes how certain stock is counted when calculating a tax penalty on private foundations. Currently, private foundations must pay an extra tax if they own too much voting stock in a company. The bill says that when a company buys back stock from an employee stock ownership plan and holds it as treasury stock or cancels it, that stock should be counted as if it's still outstanding voting stock. This could help some private foundations avoid or reduce the tax penalty by making their ownership percentage appear smaller.

Your Vote