In the United States, an Employee Stock Purchase Plan (ESPP) is a tax-efficient means by which employees of a corporation can purchase the corporation's stock, often at a discount. For example the discount might be 85% of the stock price at a certain date as determined by the plan.

External links

• The requirements for setting up an ESPP is given in Title 26 § 423
• An example of calculating taxable income is given in IRS Pub 525 (2006)
• More guidance can be read at IRS Publication 15b (2006)
• Taxation of ESPP sales