Relating to: creating an employee ownership conversion costs tax credit, a deduction for capital gains from the transfer of a business to employee ownership, and an employee ownership education and outreach program. (FE)

SB 21 creates tax incentives to encourage businesses in Wisconsin to transition to employee ownership. It provides a credit covering up to 70% of conversion costs (capped at $100,000) for worker-owned cooperatives and 50% for employee stock ownership plans (ESOPs), plus a deduction for capital gains from such business transfers. These benefits apply to business owners converting ownership to employee-controlled structures where employees own more than 50% of the business. The bill also establishes an education program to support employee ownership transitions, effective for taxable years beginning after December 31, 2024.