Bill > H2962

This bill aims to create and sustain jobs through the development of employee-owned businesses and cooperatives. The key provisions of the bill include: 1. For tax years starting on or after January 1, 2025, the bill provides an income tax exemption for any gain recognized on the sale of an ownership interest in a qualified business (a business with fewer than 500 employees, not publicly traded, and organized or with a principal place of business in Massachusetts) to an employee stock ownership plan (ESOP), S corporation owned by an ESOP, eligible worker-owned cooperative, worker-owner cooperative, or cooperative housing corporation. 2. The bill also provides an income tax deduction for interest received on qualified business acquisition loans, which are loans used to acquire majority ownership of a qualified business by the entities mentioned above. The bill aims to encourage the transfer of businesses to employee-owned structures, which can help create and sustain jobs in Massachusetts.

Budget and Finance

https://malegislature.gov/Bills/193/H2962