RI H7696

Creates income tax credits for businesses converting to employee ownership structures (worker-owned cooperatives, employee ownership trusts, employee stock ownership plans, or alternate equity structures) for tax years January 1, 2026 through January 1, 2029

Provides up to 50% of conversion costs, capped at $100,000 for conversions to worker-owned cooperatives, employee ownership trusts, or ESOPs, and capped at $25,000 for alternate equity structures

Allows existing employee-owned businesses a credit of up to 50% of expansion costs (maximum $25,000) when expanding employee ownership by at least 20% of total business ownership

Caps total tax credit certificates issued statewide at $1,000,000 per income tax year, with the Rhode Island Business Development Center administering the program

Makes the credit refundable, meaning businesses receive payment for any credit amount exceeding their tax liability