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WI AB17
Bill
Status
6/24/2025
Primary Sponsor
Shae Sortwell
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AI Summary
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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)
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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
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Department of Revenue must establish an economic development program providing education, outreach, technical assistance, and training to promote employee ownership business structures
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DOR is required to apply for a federal grant under 29 USC 3228 within one year to help fund the employee ownership education program
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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