Bill > S0088

This bill amends Vermont's Employment Growth Incentive Program (VEGI) to create a new enhanced incentive specifically for employee-owned businesses, which include employee stock ownership plans (ESOPs) and worker cooperatives. The bill defines an employee-owned business as an organization where employees hold a majority of membership, voting power, and board election rights, with earnings and losses allocated based on patronage, capital contributions, or a combination of both. Under the enhanced incentive, these businesses would receive 90% of new revenue growth (compared to the standard 80%) and benefit from a modified calculation of qualifying payroll that provides more favorable terms. The purpose of this enhanced incentive is to support the growth of locally owned and controlled businesses that typically offer higher wages and benefits to employees. Qualifying jobs for these businesses include non-owner employees working at least 35 hours per week, with special provisions for employee-owned business workers. The bill will take effect on July 1, 2025, and aims to provide additional economic support and recognition for businesses with significant employee ownership.

Housing and Urban Affairs

https://legislature.vermont.gov/bill/status/2026/S.88