Employee Stock Ownership Act of 1983

[AI summary unavailable — showing source text] Employee Stock Ownership Act of 1983 - Amends the Internal Revenue Code to provide for the nonrecognition of gain on stock sold to: (1) an employee stock ownership plan; (2) a tax credit employee stock ownership plan; or (3) an eligible worker-owned cooperative, if within a specified period of time qualified replacement property is purchased by the taxpayer. Defines "qualified replacement property" as any security issued by a domestic corporation: (1) which does not have passive investment income in excess of a specified limitation; and (2) the equity capital of which does not exceed $10,000,000. Allows an income tax deduction for cash dividends paid with respect to employer stock which is held by a tax credit employee stock ownership plan or an employee stock ownership plan which is a stock bonus plan. Extends the partial exclusion for dividends received to such amounts. Excludes from gross income 50 percent of interest received by a bank, an insurance company, or other lender on loans used by an employee stock ownership plan to acquire employer securities. Provides for a reduction in the capital gains tax with respect to sales of stock in employee-owned corporations. Sets forth s…