Employee ownership

From the 2024 DOR Tax Exemption Study

82.04.4488 - Conversion to worker-owned cooperative, employee ownership trust, or employee stock ownership plan Description Beginning July 1, 2024, qualifying businesses that convert to employee ownership structures may apply for a B&O tax credit. The total amount of credits authorized may not exceed an annual statewide limit of $2 million. For each business converting to an employee stock ownership plan, the credit equals up to 50% of the conversion costs, not to exceed $100,000. For each business converting to a worker-owned cooperative or employee ownership trust, the credit equals up to 50% of conversion costs, not to exceed $25,000. Each business may carry over unused credit to subsequent tax periods, as long it does so within 12 months of conversion. The credit expires on July 1, 2030. Purpose To provide tax relief to businesses that convert to an employee ownership structure. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.229 $0.417 $0.435 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal S