Bill > S04766

This bill creates a tax deduction for 100% of capital gains when stock or membership interests from a New York corporation or limited liability company are sold to an employee-owned enterprise. To qualify for this tax benefit, the employee-owned enterprise must have its commercial domicile in New York and, if it is an Employee Stock Ownership Plan (ESOP), must comply with federal requirements as defined in the U.S. tax code. The purpose of this bill appears to be incentivizing the sale of businesses to employee-owned entities, which can help preserve jobs and provide employees with a greater stake in their workplace. By offering a full capital gains tax deduction, the bill aims to make such business transitions more financially attractive for business owners. The tax deduction would be added to subsection (c) of section 612 of the New York tax law, and the act would take effect immediately upon passage.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S4766