Sponsors (14)
The bill encourages employee equity ownership by giving corporations and employee recipients substantial tax incentives—boosting take-home pay and employer uptake—while trading off federal revenue, risking concentrated benefits for large firms and high earners, and adding compliance and disclosure burdens.
Employees (particularly lower- and middle-income workers) who receive SHARE-plan stock will get that equity excluded from income when received, increasing their after-tax compensation and potential for long-term wealth accumulation.
Corporations that meet the SHARE requirements receive a 3 percentage-point lower corporate tax rate, reducing their federal tax bills and creating a direct financial incentive to offer employee-share plans.
Companies may deduct the fair market value of stock they distribute under SHARE plans, lowering taxable income and further encouraging adoption of employee equity programs.
Taxpayers and the general public could face meaningful reductions in federal revenue—due to the corporate rate cut, stock deduction, and employee income exclusion—potentially increasing deficits or forcing cuts to federal programs.
The tax benefits are likely to disproportionately favor large corporations and high-income employees or executives, concentrating advantages and limiting the bill's gains for typical workers.
Firms may manipulate eligibility, SHARE-ratio, or aggregation rules to qualify for benefits, creating opportunities for gaming that reduce the policy's effectiveness for intended worker beneficiaries.
Based on analysis of 3 sections of legislative text.
Lowers corporate tax rate by 3 points for qualifying firms that distribute stock through certified employee SHARE plans and excludes that stock from employees' gross income.
Introduced July 23, 2025 by Thomas Suozzi · Last progress July 23, 2025
Creates a new tax incentive that lowers the federal corporate income tax rate by 3 percentage points for U.S. corporations that adopt qualifying employee equity-distribution plans (called SHARE plans) and makes stock distributed under those plans tax-free to employees. The corporate tax cut is capped by the aggregate market value of SHARE-plan stock issued and becomes available for taxable years beginning more than one year after enactment; the employee income exclusion applies to stock received after enactment.