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WI AB17

Bill

Status

Engrossed

6/24/2025

Primary Sponsor

Shae Sortwell

Click for details

Origin

State Assembly

2025-2026 Regular Session

AI Summary

  • Nonrefundable income tax credit covers 70% of conversion costs (up to $100,000) for businesses converting to worker-owned cooperatives, or 50% of costs (up to $100,000) for conversions to employee stock ownership plans (ESOPs)

  • Capital gains from transferring business ownership to an ESOP or worker-owned cooperative are excluded from Wisconsin taxable income, provided the ESOP or cooperative owns more than 50% of the business after transfer

  • Department of Revenue must establish an economic development program providing education, outreach, technical assistance, and training to promote employee ownership business structures

  • DOR is required to apply for a federal grant under 29 USC 3228 within one year to help fund the employee ownership education program

  • Total tax credits allocated under the program are capped at $5,000,000 per year, with unused allocations carrying forward; effective for taxable years beginning after December 31, 2024

Legislative Description

Creating an employee ownership conversion costs tax credit, a deduction for capital gains from the transfer of a business to employee ownership, and an employee ownership education and outreach program. (FE)

Last Action

Public hearing held

1/8/2026

Committee Referrals

Agriculture and Revenue6/27/2025
Rules5/29/2025
Ways and Means2/6/2025

Full Bill Text

No bill text available