12 CFR 221.123
§ 221.123 Combined credit for exercising employee stock options and paying income taxes incurred as a result of such exercise.
United States · 12 CFR — Banks and Banking · Status: effective
Cite this
- Citation
- 12 CFR 221.123, § 221.123 Combined credit for exercising employee stock options and paying income taxes incurred as a result of such exercise, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/44550
- Permanent ID
ys:prov:44550@1- SHA-256
7957c5352076a161d261f624fd11293f2650a43644c7064a5de119122c3ca01d
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Full text
(a) Section 221.4(a) and (b), which provides special treatment for credit extended under employee stock option plans, was designed to encourage their use in recognition of their value in giving an employee a proprietary interest in the business. Taking a position that might discourage the exercise of options because of tax complications would conflict with the purpose of § 221.4(a) and (b).
(b) Accordingly, the Board has concluded that the combined loans for the exercise of the option and the payment of the taxes in connection therewith under plans complying with § 221.4(a)(2) may be regarded as purpose credit within the meaning of § 221.2.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.