Assembly Bill 17 introduces several tax incentives aimed at encouraging businesses in Wisconsin to convert to employee ownership structures, specifically worker-owned cooperatives and employee stock ownership plans (ESOPs). The bill establishes a nonrefundable income tax credit for businesses that incur costs related to such conversions, allowing them to claim 70% of the costs for cooperatives and 50% for ESOPs, with a maximum credit of $100,000. Additionally, it creates a capital gains deduction for individuals and corporations that transfer ownership of a business to these employee ownership structures, provided that the employee ownership entity holds more than 50% of the business.

Furthermore, the bill mandates the Department of Revenue (DOR) to develop an outreach and education program to promote employee ownership, which includes providing technical assistance and training for businesses considering this transition. The DOR is also directed to apply for federal grants to support this initiative. The bill amends various sections of the statutes to incorporate these new provisions, including the addition of definitions and requirements for claiming the credits and deductions related to employee ownership conversions.

Statutes affected:
Bill Text: 71.05(6)(a)15, 71.05, 71.21(4)(a), 71.21, 71.26(2)(a)4, 71.26