Reduction of Excess Business Holding Accrual Act

Treats certain purchases of voting company stock that a business buys back from an employee stock ownership plan (ESOP) as disregarded when computing a private foundation’s excess business holdings tax. Stock that is not readily tradable and is held as treasury stock, cancelled, or retired after being bought from an ESOP on or after Jan 1, 2020, will be ignored for purposes of the excess holdings rules; the change applies to taxable years ending after enactment.