A bipartisan bill aimed at clarifying the valuation criteria for employee stock ownership plans has been passed in the US House of Representatives and has now been sent to US President Trump to sign and take effect. The House of Representatives passed the Retirement Through Shareholding Act with 401 votes in favor and 14 against on Wednesday. The voting results highlight congressional support for employee stock ownership plans. Under the general environment of partisan rivalry in Washington, the promotion of employee shareholding has become a rare area of bipartisan consensus. The bill will resolve the issue of “full consideration”, which is also a core point of contention in many recent lawsuits relating to employee stock ownership plans. Once signed into effect, the bill will allow employee stock ownership plan trustees to hire independent assessors to carry out valuations based on the US IRS Revenue Ruling 59-60. The ruling is a guidance document used by the US IRS to determine the fair market value of shares in unlisted private companies for tax accounting, equity transfers, and legal dispute resolution purposes.

A bipartisan bill aimed at clarifying the valuation criteria for employee stock ownership plans has been passed in the US House of Representatives and has now been sent to US President Trump to sign and take effect. The House of Representatives passed the Retirement Through Shareholding Act with 401 votes in favor and 14 against on Wednesday. The voting results highlight congressional support for employee stock ownership plans. Under the general environment of partisan rivalry in Washington, the promotion of employee shareholding has become a rare area of bipartisan consensus. The bill will resolve the issue of “full consideration”, which is also a core point of contention in many recent lawsuits relating to employee stock ownership plans. Once signed into effect, the bill will allow employee stock ownership plan trustees to hire independent assessors to carry out valuations based on the US IRS Revenue Ruling 59-60. The ruling is a guidance document used by the US IRS to determine the fair market value of shares in unlisted private companies for tax accounting, equity transfers, and legal dispute resolution purposes.