Bill S.88 proposes to enhance the Vermont Employment Growth Incentive Program (VEGI) by introducing specific incentives for employee-owned businesses. The bill amends existing law to include a new category of enhanced incentives for these businesses, defined as either employee stock ownership plans or worker cooperatives. The Vermont Economic Progress Council will now have the authority to approve incentives for employee-owned businesses, which will be calculated based on a higher potential share of new revenue growth—90 percent, compared to the standard 80 percent for other businesses. Additionally, the bill outlines a new method for calculating qualifying payroll for these businesses, which involves adjusting for the background growth rate in payroll for their sector.

The bill also includes several deletions and insertions in the existing legal language. Notably, it removes the previous provision for an enhanced incentive specifically for environmental technology businesses and replaces it with the new incentive for employee-owned businesses. The effective date for this act is set for July 1, 2025, signaling a future implementation aimed at supporting the growth of locally owned and controlled businesses that are expected to provide better wages and benefits to their employees.

Statutes affected:
As Introduced: 32-105