1. Short title This Act may be cited as the Expanding Employee Ownership Act of 2017 . 2. Qualified stock distributions to employees (a) In general Part II of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 83 the following new section: 83A. Qualified stock distributions to employees (a) In general If an employee elects to have this section apply with respect to any qualified employee stock distribution, gross income shall not include— (1) so many shares of employer securities received by an individual in a qualified employee stock distribution of such individual’s employer as does not exceed the maximum stock amount, (2) any gain on employer securities excluded from gross income under paragraph (1) if such employer security is held by such individual for not less than 10 years, and (3) in the case of any qualified disposition of an employer security which is described in paragraph (2) (and which meets the holding requirement of such paragraph), any gain on so much stock acquired during the 60-day period beginning on the date of such disposition as does not exceed the fair market value of the employer security so disposed (determined as of the time of disposition). (b) Definitions For purposes of this section— (1) Employer securities The term employer securities has the meaning given such term in section 409(l), except that paragraph (3) thereof shall be applied by substituting the date of the qualified employee stock distribution for the date of the acquisition by the tax credit employee stock ownership plan . Such term shall not include any stock unless such stock has voting rights. Any employer securities which are held in trust or cease to be held directly by the employee shall cease to be treated as employer securities and shall be treated for purposes of subsection (e) as having been disposed of by the employee. (2) Qualified employee stock distribution The term qualified employee stock distribution means a distribution by an employer of employer