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Senate Finance advances expanded tax credit to help convert small firms to employee ownership
Summary
HB 25-10-21 reauthorizes and adjusts the employee-ownership tax credit, expanding eligibility and raising caps to help more small businesses convert ownership to employees; committee moved the bill to Appropriations after proponent testimony from small-business groups and OEDIT.
Senate Finance advanced HB 25-10-21 to Appropriations after hearing testimony that the employee-ownership tax credit can preserve locally owned businesses and help retiring owners transfer assets and jobs to employees.
Sponsor remarks: Senator Kevin Bridges said many business owners lack succession plans and that employee ownership can preserve jobs and wealth locally. “Employee ownership is part of how we ensure that the buying and selling of companies doesn't just benefit the owners… it benefits the workers at these businesses as well,” Bridges said when introducing the bill.
What the bill does: The measure reauthorizes the employee ownership tax credit, increases the percentage and eligible expense limits from previous law and extends program availability to more businesses; it also creates related deductions to lower conversion costs. The Office of Economic Development and International Trade (OEDIT) manages the program and testified it is one of three such offices nationally.
Who testified: Hunter Nelson of Small Business Majority and Tristan Watkins from OEDIT described the program's role in succession planning and job preservation; Associated General Contractors said the credit had a measurable effect in construction firms converting to employee ownership.
Committee action: A technical cleanup amendment (L006) was adopted; Vice Chair Marchman moved HB 10-21 as amended to Appropriations; the committee recorded a unanimous vote to advance the bill.
