(Sec. 2 ) This bill amends the Internal Revenue Code to allow an employee to elect to defer, for income tax purposes, income attributable to certain stock transferred to the employee by an employer.
The employee may defer the inclusion of income from the stock until the year that includes the earliest of the dates on which:
the stock becomes transferable;
the employee becomes an excluded employee;
stock of the corporation becomes readily tradable on an established securities market;
seven years have passed after the rights of the employee in the stock are transferable or are not subject to a substantial risk of forfeiture, whichever occurs earlier; or
the employee revokes the election with respect to the stock.
The stock must meet specified requirements and be transferred to the employee from an eligible corporation in connection with the performance of services as an employee.
[https://www.congress.gov/bill/114th-congress/house-bill/5719/ Link to bill page]
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