Expanded Ownership Act of 1981

[AI summary unavailable — showing source text] Expanded Ownership Act of 1981 - Amends the Internal Revenue Code to allow an income tax deduction for employer contributions to an employee stock ownership plan (ESOP) which are applied to the repayment of principal and interest on a loan incurred for the purpose of acquiring qualifying employer securities. Limits the deductible amount for principal contributions to 25 percent of the compensation otherwise paid or accrued to all employees under the plan for the taxable year. Exempts such an ESOP from the limitations otherwise imposed on annual additions to an employee stock ownership plan. Allows an income tax deduction for cash dividends paid with respect to employer stock which is held by a tax credit ESOP. Extends the partial exclusion for dividends received to such amounts. Provides for nonrecognition of any long-term capital gain from the sale of small business stock to an ESOP, a tax credit ESOP, or a specified type of consumer cooperative, except to the extent that the taxpayer's sale price exceeds the cost of small business stock or small business investment company stock purchased by the taxpayer within 18 months after the date of such sale. Reduces the basis of such stoc…