VT S0088

Creates a new enhanced incentive category within Vermont's Employment Growth Incentive Program (VEGI) specifically for employee-owned businesses, including employee stock ownership plans (ESOPs) and worker cooperatives

Increases the business's potential share of new revenue growth from 80% to 90% for qualifying employee-owned businesses

Defines eligible employee-owned businesses as ESOPs under federal tax code, worker cooperatives organized under Vermont law, or organizations where employees constitute a majority of membership and hold majority voting power with one-person-one-vote board elections

Modifies the qualifying payroll calculation for employee-owned businesses by using 20% of the background growth rate (rather than the standard rate) when determining payroll performance requirements

Takes effect July 1, 2025