HB 24-1157 Summary

• Creates the Employee Ownership Office within the Office of Economic Development to support Colorado businesses transitioning to employee ownership models through technical assistance and financial support.

• Establishes a tax credit for new employee-owned businesses equal to 50% of eligible costs (accounting, legal, advisory services), capped at $50,000 per business, for tax years 2025-2029.

• Requires employee-owned businesses to meet specific ownership thresholds: at least 20% of eligible workers must participate in ownership through ESOPs, trusts, cooperatives, or alternate equity structures granting equivalent rights.

• Appropriates $145,847 to the Office of the Governor for 2024-25 to fund 1.0 FTE for the Employee Ownership Office.

• Creates an Employee Ownership Cash Fund from application fees (up to $250 per application) with $1.5 million annual cap on tax credit certificates issued; entire program repeals January 1, 2035.