Bill > H3079

This bill proposes a new tax deduction for business corporations that sell employer securities (company stock) to an Employee Stock Ownership Plan (ESOP). Specifically, the bill allows a business corporation to deduct the capital gains from selling its stock to an ESOP, with two key conditions: the business must have fewer than 500 employees, and the ESOP must own at least 49% of the company's outstanding securities. An ESOP is a type of employee benefit plan that gives workers ownership interest in the company, typically through shares of stock. By providing this tax incentive, the bill aims to encourage businesses to implement employee stock ownership plans, which can potentially increase employee engagement, provide retirement benefits, and create a more collaborative workplace environment. The deduction would be applied when determining the corporation's net income subject to taxation, effectively reducing the tax liability for businesses that transfer significant ownership to their employees through an ESOP.

Budget and Finance

https://malegislature.gov/Bills/194/H3079