Employee Ownership Blog

Corey Rosen

Connecticut Bill Would Give Tax Incentive to Large Companies to Share Ownership

SB 1239, An Act Concerning Certain Employee Stock Ownership Plans, would allow Connecticut companies to avoid a state corporate tax surcharge if they provide at least 80% of their employees with at least 300 shares apiece for each year the surcharge applies. The state surcharge equals 10% of taxes paid and applies to companies with $100 million or more in income or companies that are part of a combined group of companies that file a unitary income tax return, regardless of income.

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Lindsay Isaac

Announcing “The Download,” a Monthly ESOP Communication Resource

ESOP companies are often on the lookout for good communication and education resources to support their efforts around employee onboarding and training, specifically ESOP literacy, ownership culture, and countless other issues. This is why we are thrilled to launch a new member benefit this week—The Download, an email newsletter featuring a new solutions-focused resource every month. The resources are designed with the end user in mind—your employee-owners—to be shared as-is or with minimal adaptation to incorporate the specifics of your plan.

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Corey Rosen

Employee Equity Investment Act Introduced in Both Houses with Bipartisan Support

Senators Chris Van Hollen (D-MD) and Marco Rubio (R-FL), along with Representatives Dean Phillips (D-MN) and Blake Moore (R-UT), have introduced the Employee Equity Investment Act (EEIA). The bill would create an investment facility within the Small Business Administration's (SBA's) Small Business Investment Company (SBIC) program to provide loan guarantees for investment funds devoted to expanding employee ownership.

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Corey Rosen

Colorado Expands Tax Credit for Employee Ownership Conversions

The Colorado legislature has passed (by margins of 54-2 in the House and 26-9 in the Senate) a bill (HB23-1081) to expand its tax credits for converting to employee ownership. Governor Jared Polis has strongly supported the legislation and is expected to sign it. Under prior law, companies converting to ESOP ownership could get a tax credit for up to 50% of costs for conversion, with a maximum credit of $100,000 for conversion expenses; the dollar limit is now increased to $150,000. For worker cooperatives, prior law provided a credit of up to 50% of conversion costs, with a maximum credit of $25,000; the dollar limit is now increased to $40,000. Conversions to other qualified forms of employee ownership now also qualify for a credit of up 50% of the costs, up to a maximum credit of $25,000. Finally, the bill provides a tax credit of 50% of the costs, up to a maximum credit of $25,000, for a qualified employee-owned business expanding its employee ownership by at least 20%.

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Loren Rodgers

Just-Launched “Shares Laboratory” to Study Equity Compensation

The Institute for the Study of Employee Ownership and Profit Sharing at Rutgers University announced on April 18 that it is launching the Shares Laboratory. The lab will use "big data" and a model of the national labor force to conduct research, monitoring, and policy-relevant work on all forms of equity compensation.

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Corey Rosen

Washington Governor Signs Most Comprehensive Bill Yet on Employee Ownership

By a unanimous vote, both chambers of the Washington State Legislature have passed S.B. 5096, “An act relating to expanding employee ownership.” On May 9, Governor Jay Inslee signed the bill. The law creates the most ambitious state employee ownership program yet. It includes the following provisions:

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