This bill amends the Internal Revenue Code of 1986 to adjust the calculation of excess business holdings for private foundations. It introduces a provision to treat specific types of employee-owned stock as outstanding, even after it has been repurchased by the issuing business enterprise. Specifically, this applies to non-tradable voting stock acquired by a business from an employee stock ownership plan (ESOP) on or after January 1, 2020, provided it was purchased in connection with a plan distribution and is held as treasury stock, cancelled, or retired. This reclassification helps prevent the business's repurchase of ESOP stock from inadvertently increasing a private foundation's percentage of holdings, which could trigger the excess business holdings tax . The provision is limited, ensuring that permitted holdings do not exceed 49 percent, and does not apply to stock purchased within the first 10 years of an ESOP's establishment.