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Denver, Colorado – The House Business Affairs and Labor Committee today passed legislation that would create a refundable state income tax credit to support employee-owned businesses. HB24-1157 would also make employee-owned offices a permanent resource for small businesses as they transition to employee-owned businesses. The bill passed on a 9-2 vote.
“Employee-owned business models allow locally owned businesses to stay within the community. However, the costs and resources required during the transition can be a barrier for employees looking to acquire the business. there is.” said Rep. William Lindstedt, a Bloomfield Democrat. “This legislation would make the Office of Employee Ownership a permanent resource and create a state income tax credit to save money for employee-owned businesses. We continue the work we have done in recent years to become a national leader in helping owned business owners thrive in their communities.”
“Employee-owned business models are not only beneficial to retiring business owners, but also reward hard-working employees for their dedication to the company, encourage higher wages, and bring business into the community. It also helps keep it ingrained.” said Rep. Stephanie Vigil, D-Colorado Springs. “By providing tax credits for new employee-owned businesses, we can encourage more businesses to stay local and help working people retain more of the value of their labor. ”
HB24-1157 An Office of Employee Ownership would be temporarily established by Governor Polis. presidential ordera permanent office for ongoing support for small business owners transitioning to an employee-owned business model.
The bill would also create a refundable state income tax credit for expenses associated with operating a new employee-owned business. The tax credit is available from tax years 2025 to 2033 and also applies to businesses that have been partially or fully owned by employees for less than seven years. This tax credit covers 50% of eligible expenses and can save you up to $50,000 per year.
In 2021, Colorado Democrats created a first-in-the-nation policy. Refundable income tax credit This encourages business owners to move towards an employee-owned business model. It supports business owners who are transitioning away from ownership by handing over their businesses to their employees, empowering hard-working Coloradans to become new entrepreneurs while allowing communities to maintain their own economic opportunities. It allows you to play a role as
Councilman Lindstedt also passed the bill. law Congress in 2023 will allow new methods that companies are using to transfer stock to employees, including partially employee-owned companies, and are transitioning to employee ownership with existing resources. Expands employee ownership tax credits by increasing incentives for eligible businesses.
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