AB17: Bill Text

AB17,10,16 (d) Administration. Section 71.28 (4) (e) to (h), as it applies to the credit under s. 71.28 (4), applies to the credit under this subsection.

AB17,14 Section 14. 71.49 (1) (am) of the statutes is created to read:

AB17,10,18 71.49 (1) (am) Employee ownership conversion costs credit under s. 71.47 (12).

AB17,15 Section 15. 73.03 (78) of the statutes is created to read:

AB17,10,21 73.03 (78) (a) To establish and administer an economic development program for the purpose of doing all of the following:

AB17,11,2 1. Providing education and outreach to inform employees and employers about the possibilities and benefits of employee ownership business structures and succession planning, including providing information about financial education, employee teams, open-book management, and other tools that enable employees to share ideas and information about how their businesses can succeed.

AB17,11,7 2. Providing technical assistance to assist employee efforts to become business owners, to enable employers and employees to explore and assess the feasibility of transferring full or partial ownership to employees, and to encourage employees and employers to start new businesses with an employee ownership business structure.

AB17,11,10 3. Training employees and employers with respect to methods of employee participation in open-book management, work teams, committees, and other approaches for seeking greater employee input.

AB17,11,12 4. Training other entities to establish programs and carry out program activities designed to promote employee ownership business structures.

AB17,11,14 (b) The department may contract with a 3rd party to operate the program under this subsection.

AB17,11,18 (c) Within one year after the effective date of this paragraph .... [LRB inserts date], the department shall submit an application to the U.S. secretary of labor for a grant under 29 USC 3228 for use in connection with the program under this section.

AB17,11,19 (d) In this subsection:

AB17,11,21 1. “Employee ownership business structure” includes the business structures for employee stock ownership plans and worker-owned cooperatives.

AB17,11,23 2. “Employee stock ownership plan” has the same meaning as in 26 USC 4975 (e) (7).

AB17,12,2 3. “Worker-owned cooperative” has the meaning given for “eligible worker- owned cooperative” in 26 USC 1042 (c) (2).

AB17,16 Section 16. 73.03 (79) of the statutes is created to read:

AB17,12,5 73.03 (79) (a) 1. To implement a program to approve applications for purposes of ss. 71.07 (12), 71.28 (12), and 71.47 (12).

AB17,12,7 2. An applicant for a tax credit under s. 71.07 (12), 71.28 (12), or 71.47 (12) is eligible for certification under subd. 3. if all of the following apply:

AB17,12,8 a. The applicant is a business subject to taxes under ch. 71.

AB17,12,10 b. The applicant does not have an employee stock ownership plan and is not, in whole or in part, a worker-owned cooperative.

AB17,12,12 3. The department may certify a qualified business to claim a tax credit under s. 71.07 (12), 71.28 (12), or 71.47 (12) as follows:

AB17,12,14 a. An amount, not to exceed $100,000, equal to up to 70 percent of conversion costs related to converting a qualified business to a worker cooperation.

AB17,12,17 b. An amount, not to exceed $100,000, equal to up to 50 percent of conversion costs related to converting a qualified business to an employee stock ownership plan.

AB17,12,20 4. The department may allocate up to $5,000,000 in total credits under ss. 71.07 (12), 71.28 (12), and 71.47 (12) each year. Any unused allocation may be carried forward.

AB17,12,21 (b) In this subsection:

AB17,12,23 1. “Conversion costs” means professional services, including accounting, legal, and business advisory services, for any of the following:

AB17,13,2 a. A feasibility study or other preliminary assessments regarding a transition of a business to an employee stock ownership plan or a worker-owned cooperative.

AB17,13,4 b. The transition of a business to an employee stock ownership plan or a worker-owned cooperative.

AB17,13,6 2. “Employee stock ownership plan” has the same meaning as in 26 USC 4975 (e) (7).

AB17,13,8 3. “Qualified business” means a person that satisfies the criteria under par. (a) 2.

AB17,13,10 4. “Worker-owned cooperative” has the meaning given for “eligible worker- owned cooperative” in 26 USC 1042 (c) (2).

AB17,17 Section 17. Initial applicability.

AB17,13,13 (1) Capital gain subtraction. The treatment of ss. 71.26 (2) (a) 13. and 71.45 (2) (a) 25. first applies to taxable years beginning on January 1, 2025.

AB17,13,14 (end)