S 88 — An act relating to creating an enhanced growth incentive for employee-owned businesses

Bill Text

• Introduced As IntroducedOpens in a new window Current pdf

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This bill creates an enhanced growth incentive specifically for employee-owned businesses within the Vermont Employment Growth Incentive Program.

• 32 V.S.A. chapter 105, subchapter 2

  an enhanced incentive for an employee-owned business pursuant to section 3335a of this title.

  This addition allows for enhanced incentives specifically for employee-owned businesses.

• 32 V.S.A. § 3331

  an employee of an employee-owned business, pursuant to section 3335a of this title, who regularly works at least 35 hours each week. → an employee of an employee-owned business, pursuant to section 3335a of this title, who regularly works at least 35 hours each week.

  This ensures that employees of employee-owned businesses are recognized as qualifying jobs.

• 32 V.S.A. § 3333

  an enhanced incentive for an environmental technology business under pursuant to section 3335 of this title or an employee-owned business pursuant to section 3335a of this title, → an enhanced incentive for an environmental technology business under pursuant to section 3335 of this title or, an enhanced incentive for an employee-owned business pursuant to section 3335a of this title,

  This clarifies the distinctions in enhanced incentives criteria.

• 32 V.S.A. § 3335a

  the following: (1) an “employee stock ownership plan,” which means an employee stock ownership plan as defined in 26 U.S.C. § 4975(e)(7), as may be amended; or (2) a “worker cooperative,” which means: (A) an eligible worker-owned cooperative as defined in 26 U.S.C. § 1042(c), as may be amended; (B) a worker cooperative organized under 11 V.S.A. chapter 8; or (C) an organization that meets the following criteria: (i) employees of the organization constitute a majority of its membership; (ii) members of the organization hold a majority of the voting power; (iii) members of the organization have the authority to elect a majority of the board of directors on the basis of one person, one vote; and (iv) the organization allocates a majority of its allocated earnings and losses to members on the basis of: (I) patronage; (II) capital contributions; or (III) a combination of subdivisions (I) and (II) of this subdivision (2)(C)(iv); and (3) seeks an incentive for economic activity in Vermont pursuant to this subchapter.

  This defines what constitutes an employee-owned business for the purposes of the program.

• 32 V.S.A. § 3335a

  the business’s potential share of new revenue growth shall be 90 percent;

  This specifies a higher percentage of revenue growth for employee-owned businesses compared to others.

Action History

1. February 25, 2025

   Read 1st time & referred to Committee on Economic Development, Housing and General Affairs

Sponsors

• Rebecca "Becca" E White · Primary
• Anne E Watson · Primary
• Robert Plunkett · Primary
• Joseph "Joe" D Major · Primary
• Alison Clarkson · Primary
• Randy D Brock · Primary
• Wendy K Harrison · Primary

Subjects