WASHINGTON — Expanding ESOPs applauds House passage of the Retire Through Ownership Act, bipartisan legislation permitting ESOP fiduciaries to rely in good faith on a valuation prepared by a qualified independent appraiser under IRS Revenue Ruling 59-60.
The Senate passed the companion measure unanimously on October 9, 2025. Expanding ESOPs submitted a letter of support.
“Valuation uncertainty has been a major deterrent confronting an owner who wants to sell to the people who built the company,” said Michael Sinacore, head of policy and government affairs at Expanding ESOPs. “Today’s House vote is a great first step towards addressing the issue, and we look forward to partnering with Congress to build on the success of this bill.”
Safe-harbor valuation guidelines that treat workers fairly and reduce undue litigation risk have always been a core Expanding ESOPs principle. Uncertainty about how a fiduciary’s valuation judgment will be reviewed years after the fact operates as a tax on employee ownership, raising the cost of every transaction and consuming resources that belong in workers’ accounts. The Retire Through Ownership Act makes crucial progress towards that principle. Expanding ESOPs looks forward to taking up that question with the same members who built this bill.
Expanding ESOPs applauds Representative Rick Allen (R-GA), who authored the bill, and Representatives Lucy McBath (D-GA), Chuck Edwards (R-NC), Mark Messmer (R-IN), and Michael Baumgartner (R-WA). The coalition thanks Chairman Tim Walberg (R-MI) and Ranking Member Bobby Scott (D-VA) of the House Committee on Education and the Workforce for their stewardship. In the Senate, Expanding ESOPs thanks Senator Roger Marshall (R-KS) and Senator Tim Kaine (D-VA), who authored the companion bill, and Chairman Bill Cassidy (R-LA) and Ranking Member Bernie Sanders (I-VT) of the Committee on Health, Education, Labor and Pensions.
About Expanding ESOPs
Expanding ESOPs is a coalition of more than 100 organizations that sees employee stock ownership plans as a powerful yet underused tool to create meaningful wealth-building opportunities for workers while delivering significant benefits to companies. Learn more at expandingesops.com.