Bill > S1950

This bill introduces a new tax deduction for businesses that sell their employer securities (company stock) to an Employee Stock Ownership Plan (ESOP). Specifically, the bill allows a business corporation to deduct an amount equal to its capital gains from selling employer securities to an ESOP, but only under certain conditions: the business must have fewer than 500 employees, the ESOP must own at least 49% of the company's outstanding securities, and the business must be the sponsor of the ESOP. The purpose of this legislation appears to be encouraging employee ownership by providing a financial incentive for businesses to sell stock to their employees through an ESOP, which is a type of employee benefit plan that allows workers to become owners of the company by acquiring stock. This tax deduction could help small to medium-sized businesses facilitate employee ownership and potentially improve employee engagement and motivation.

Budget and Finance

https://malegislature.gov/Bills/194/S1950