WI SB21

Creates a nonrefundable income tax credit for businesses converting to employee ownership: 70% of conversion costs (up to $100,000) for worker-owned cooperatives, or 50% of conversion costs (up to $100,000) for employee stock ownership plans (ESOPs)

Allows business owners to exclude capital gains from Wisconsin taxable income when transferring more than 50% ownership of a business to an ESOP or worker-owned cooperative, effective for taxable years beginning after December 31, 2024

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

Directs DOR to apply for a federal grant under 29 USC 3228 within one year to help fund the employee ownership outreach program

Caps total tax credits at $5,000,000 per year, with unused allocations carried forward; eligible conversion costs include accounting, legal, and business advisory services for feasibility studies and ownership transitions