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 differently than for other types of businesses, allowing them a potential share of new revenue growth of 90 percent. Additionally, the bill outlines the criteria for qualifying jobs within these businesses, ensuring that positions are filled by non-owner employees or employees of employee-owned businesses who work at least 35 hours per week.

The legislation also includes provisions for calculating qualifying payroll for employee-owned businesses, which will involve determining the background growth rate in payroll for the relevant business sector and adjusting the payroll performance requirement accordingly. The intent behind these changes is to support the growth of locally owned and controlled employee-owned businesses, which are recognized for typically providing higher wages and benefits to their employees. The act is set to take effect on July 1, 2025.

Statutes affected:
As Introduced: 32-105