Creating an employee ownership conversion costs tax credit and an exemption for capital gains from the transfer of a business to employee ownership. (FE)

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

This bill creates tax incentives related to businesses in this state converting to an employee ownership business structure.

Employee ownership conversion costs tax credit Under the bill, the Wisconsin Economic Development Corporation may certify a business to claim a nonrefundable income tax credit for an amount equal to 70 percent of costs related to converting the business to a worker-owned cooperative or 50 percent of the costs related to converting the business to an employee ownership trust or an employee stock ownership plan. The credit is limited to a maximum amount of $100,000. A business is qualified to receive the credit if the business is subject to income and franchise taxes in this state and, at the time the business receives the credit, is not owned in whole or in part by an employee ownership trust, does not have an employee stock ownership plan, and is not, in whole or in part, a worker-owned cooperative.

Who's behind it

6 representatives are its authors⁠. All 6 are Democrats.

What it would cost

State agencies filed a cost estimate. Each opens as a PDF from the Legislature.

• Fiscal Estimate From DOR