Official Summary

1/25/2011--Introduced.Employee Stock Ownership Plan Promotion and Improvement Act of 2011- Amends the Internal Revenue Code to: (1) exempt certain distributions, including dividends, by S corporations to an employee stock ownership plan (ESOP) from the penalty tax for premature employee be

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Official Summary

1/25/2011--Introduced.Employee Stock Ownership Plan Promotion and Improvement Act of 2011- Amends the Internal Revenue Code to:
(1) exempt certain distributions, including dividends, by S corporations to an employee stock ownership plan (ESOP) from the penalty tax for premature employee benefit plan withdrawals;
(2) exempt deductions for ESOP dividends from corporate alternative minimum tax adjustments based on adjusted earnings and profits;
(3) allow deferral of the recognition of gain for certain sales to ESOPs sponsored by any domestic corporation, including S corporations;
(4) allow reinvestment of ESOP stock proceeds eligible for nonrecognition of gain in certain mutual funds; and
(5) modify certain ESOP stock ownership rules. Amends the Small Business Act to allow a majority-owned ESOP business concern to continue to qualify for loans, preferences, and other programs under such Act.

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