New Jersey Advances Legislation to Encourage ESOPs

On September 17, the Labor Committee of the New Jersey Senate unanimously approved bill S945, legislation by Donald Norcross (D) that creates a gross income tax exclusion for capital gain in connection with qualified transactions in which small businesses establish ESOPs. "We want Jersey-owned businesses to stay locally owned," Senator Norcross said. The bill would allow to exclusion of state capital gains tax for businesses with 500 or fewer employees if the ESOP ends up owning at least 30% of the company's shares.