5/30/2023 0 Comments Subsume under legislation![]() Under this legislation, Conrail was required to set up an ESOP that would own 15% of Conrail stock, with the government owning the rest. The first mention of ESOPs in federal law was the 1973 Regional Railroad Reorganization Act, which created Conrail to subsume a number of railroads into a single company. 1973: The Regional Railroad Reorganization Act Until 1974 and the passage of the Employee Retirement Income Security Act (ERISA), about 300 plans were set up using existing stock bonus plan law and approved one-by-one by the IRS. Details about most of them are readily available through a search on the NCEO site or newsletters for more recent legislation (1997 and forward).ĮSOPs were actually created by Louis Kelso in the 1950s, and the first ESOP installed in 1956. This article only provides brief descriptions of what are often complex laws. It is limited to those proposals that have at least made it to committee consideration. ![]() In addition, this article describes legislation currently proposed. The laws contain a number technical provisions not included in this summary. This summary provides a very brief description of these laws. ![]() In addition, there have been two laws to facilitate SBA financing for ESOPs, two to mandate ESOPs as part of government bailouts of private companies, and one to limit abuses of S corporation ESOP tax incentives. There have been multiple added tax incentives, although some were later repealed. Congress has been very supportive of ESOPs since their creation in 1974. ![]()
0 Comments
Leave a Reply. |