Advocacy Timeline

1997 - Improvements to Subchapter S ESOP Law

ESOP Protections improved from the 1996 Subchapter S Law

After a concerted effort, Congress and the Administration are persuaded to improve the 1996 Subchapter S ESOP Law, and beginning in 1998 it becomes allowable for Subchapter S Corporations to sponsor an ESOP. Previously, S-corporations could not sponsor ESOPs because qualified retirement plans could not own stock in the sponsoring company.