An Act to promote employee ownership

This bill allows Massachusetts business corporations to claim a tax deduction for earnings derived from selling company stock to an employee stock ownership plan. The provision specifically applies to private companies with fewer than 500 employees that are selling at least 49 percent of their outstanding shares to employees. To qualify for this tax benefit, the business must be the official sponsor of the employee stock ownership plan. By reducing the taxable income associated with these stock sales, the legislation aims to provide a financial incentive for businesses to transition toward employee ownership models.