Bill

Bill > HB1047


TN HB1047

TN HB1047
AN ACT to amend Tennessee Code Annotated, Title 4; Title 8; Title 9; Title 12, Chapter 3; Title 45; Title 50; Title 56, Chapter 1 and Title 67, relative to employee-owned businesses.


summary

Introduced
02/05/2025
In Committee
02/10/2025
Crossed Over
Passed
Dead

Introduced Session

114th General Assembly

Bill Summary

As introduced, enacts the "Employee Ownership, Empowerment, and Expansion Act" to support the growth and expansion of employee-owned businesses. - Amends TCA Title 4; Title 8; Title 9; Title 12, Chapter 3; Title 45; Title 50; Title 56, Chapter 1 and Title 67.

AI Summary

This bill establishes the "Employee Ownership, Empowerment, and Expansion Act" to encourage and support employee-owned businesses in Tennessee through several key provisions. The legislation creates a tax credit for businesses converting to employee ownership structures, including employee stock ownership plans (ESOPs), employee ownership trusts, and worker-owned cooperatives. Specifically, businesses can receive up to 50% of their conversion costs, with a maximum credit of $25,000 for worker-owned cooperatives and employee ownership trusts, and up to $100,000 for ESOPs. The tax credit is available for tax years between January 1, 2026, and January 1, 2031, and unused credits can be carried forward for up to 25 years. The bill also exempts these types of employee-owned businesses from certain taxes and adds "Tennessee employee-owned businesses" as a distinct category in state procurement and business support regulations. Additionally, the legislation requires the state department to conduct outreach to minority-owned businesses about the new tax incentives and to submit a report to the legislature detailing metrics for measuring the effectiveness of these incentives. The bill aims to provide business owners with alternatives for transferring ownership to employees and to promote more inclusive business ownership models.

Committee Categories

Business and Industry

Sponsors (1)

Last Action

No Action Taken (on 03/19/2025)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...