{
  "id": "RS21526",
  "type": "CRS Report",
  "typeId": "REPORTS",
  "number": "RS21526",
  "active": false,
  "source": "EveryCRSReport.com",
  "versions": [
    {
      "source": "EveryCRSReport.com",
      "id": 103256,
      "date": "2003-05-20",
      "retrieved": "2016-04-08T14:44:51.213544",
      "title": "Employee Stock Ownership Plans (ESOPs): Legislative History",
      "summary": "Employee Stock Ownership Plans (ESOPs) are defined contribution plans primarily invested in\nthe\nemployer's securities. Employee stock plans in the form of an ESOP pre-date the 1974 Employee\nRetirement Income Security Act (ERISA).  (1)  ERISA, however, was the first\nlaw to recognize ESOPs. \nCongress has routinely revisited ESOPs and amended the IRC to reflect policy. The 1975 Tax\nReduction Act created a tax credit for ESOPs. The Revenue Act of 1978 added new formalities to\nESOPs through creation of IRC Section 409A. In the mid-1980s, the 1984 Tax Reform Act created\nnew and substantial tax incentives for employers maintaining ESOPs for employees. Two years\nlater, the 1986 Tax Reform Act emphasized the retirement objective of ESOPs by imposing a 10%\npenalty tax on withdrawals made prior to age 59.5. The Omnibus Budget Reconciliation Act of\n1989, however, repealed or limited multiple ESOP tax incentives. The Small Business Job\nProtection Act (SBJPA) of 1996 widened the availability of ESOPs by allowing S corporation\nshareholders to participate. To prevent abuse of S corporation ESOPs, the Economic Growth and\nTax Relief Reconciliation of 2001 Act initiated a 50% excise tax on prohibited allocations by S\ncorporation ESOPs. Finally, the Job Creation and Worker Assistance Act of 2002 increased the\ncontribution limits of many qualified retirement plans, including ESOPs.\n     1.  \u00a0 P.L. 93-406 .",
      "type": "CRS Report",
      "typeId": "REPORTS",
      "active": false,
      "formats": [
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          "format": "PDF",
          "encoding": null,
          "url": "http://www.crs.gov/Reports/pdf/RS21526",
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          "filename": "files/20030520_RS21526_7733b590f3007463efa5ee485eb2fe523cdf71da.pdf",
          "images": null
        },
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          "filename": "files/20030520_RS21526_7733b590f3007463efa5ee485eb2fe523cdf71da.html"
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      ],
      "topics": []
    }
  ],
  "topics": [
    "American Law",
    "Domestic Social Policy",
    "Economic Policy"
  ]
}