A bipartisan pair of representatives introduced the ESOP Promotion and Improvement Act of 2010 in the House of Representatives on May 5. This legislation is intended to make the federal tax code more business friendly for employee stock ownership plans (ESOPs). Among other things, the tax law changes would change how dividends from S corporation stock are taxed and the tax deduction rules.

The text of the ESOP Promotion and Improvement Act of 2010 can be found here.