This bill amends the Internal Revenue Code of 1986 to adjust the calculation of private foundation excess business holdings, specifically addressing situations where a business enterprise repurchases its own stock from an employee stock ownership plan (ESOP) . The legislation aims to prevent private foundations from incurring penalties due to an increase in their proportional ownership when a company buys back its own stock from an ESOP, rather than through any action by the foundation itself. The bill mandates that certain non-tradable voting stock, purchased by a business from an ESOP on or after January 1, 2020, and subsequently held as treasury stock or retired, must be treated as outstanding voting stock . This treatment applies for purposes of determining a private foundation's percentage of ownership, provided it does not result in permitted holdings exceeding 49 percent. This change applies to taxable years ending after the date of enactment, with an exception for stock purchased from a plan during its initial 10-year period.