HOUSE DOCKET, NO. 3850        FILED ON: 1/20/2023

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2769

 

The Commonwealth of Massachusetts

_________________

PRESENTED BY:

Kip A. Diggs

_________________

To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act to promote employee ownership.

_______________

PETITION OF:

 

Name:

District/Address:

Date Added:

Kip A. Diggs

2nd Barnstable

1/20/2023


HOUSE DOCKET, NO. 3850        FILED ON: 1/20/2023

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 2769

By Representative Diggs of Barnstable, a petition (accompanied by bill, House, No. 2769) of Kip A. Diggs relative to the taxation of certain business corporations sponsoring employee stock ownership plans.  Revenue.

 

The Commonwealth of Massachusetts

 

_______________

In the One Hundred and Ninety-Third General Court
(2023-2024)

_______________

 

An Act to promote employee ownership.

 

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

Chapter 63 of the General Laws, as appearing in the 2020 Official Edition, is hereby amended by inserting, after section 38FF, the following new section:-

Section 38GG. In determining the net income subject to tax under this chapter, a business corporation may deduct an amount equal to its earnings from capital gains from the sale of employer securities of a non-publicly traded business with fewer than 500 employees to an employee stock ownership plan, as defined in chapter 23D, that owns no less than 49 per cent of all outstanding employer securities issued by the business; provided, however, that the business corporation must be the sponsor of the employee stock ownership plan.