An Act to promote employee ownership

This bill allows Massachusetts business corporations to deduct certain capital gains from their taxable income if they sell employer stock to an employee ownership plan. The provision specifically applies to private companies with fewer than 500 employees that are selling stock to a plan where employees own at least 49 percent of the company. By permitting this tax deduction, the legislation aims to encourage businesses to implement employee stock ownership plans. The measure directly affects business owners and corporations that choose to structure their equity in this manner.