ME LD756

Business owners selling more than 50% ownership interest to an employee stock ownership plan (ESOP), worker-owned cooperative, consumer cooperative, or producer cooperative may deduct capital gains up to $750,000 from Maine income tax, effective for tax years beginning January 1, 2025

Interest income received from loans financing business acquisitions by ESOPs or cooperatives is excluded from Maine income tax for individuals and corporations, and financial institutions may subtract such interest from Maine net income for franchise tax purposes

Creates the Maine Employee Ownership Center within the Office of Business Development, operated by a contracted nonprofit organization, to provide education, technical assistance, and feasibility study support for businesses transitioning to employee or cooperative ownership

Requires the center to collect data on ownership conversions, jobs retained, and economic impact to facilitate ongoing tax expenditure review by the Office of Program Evaluation and Government Accountability

Applies to qualified businesses that are not publicly traded and are either registered with the Secretary of State or have their principal place of business in Maine