Pro-ESOP Legislation Passes Pennsylvania House

The Pennsylvania State house has passed HB 285 which would permit the deferral of taxation on a lump-sum distribution from Employee Stock Ownership Plans (ESOP). The legislation, sponsored by Rep. Daryl Metcalfe (R-Butler), puts the state on par with the rest of the nation and allows certain business owners who sell stock to an Employee Stock Ownership Plan (ESOP) to defer capital gains taxes collected at the sale of the business.

“The purpose of my legislation is to increase the incentive for family-owned businesses and other employers to sell their business to an ESOP rather than outsiders whose intentions and the fate of current employees are nearly always unknown,” - Rep. Metcalfe

Learn more about the bill here: https://www.legis.state.pa.us/cfdocs/legis/home/bills/index.cfm (Search HB 285)

The bill is now being considered by the State Senate.