DENVER, CO - The House Finance Committee today unanimously passed legislation that expands the Employee Ownership Tax Credit. The vote was 11-0.
“Employee-owned business models promote higher wages, job security, and better benefit options for hard-working Coloradans,” said Rep. William Lindstedt, D-Broomfield. “The Employee Ownership Tax Credit is an innovative tool for business owners looking to sell or retire and helps address the affordability issues we’re facing in Colorado. This bill builds on the established program by expanding the credit to incentivize more businesses to stay in capable local hands in our communities.”
In 2021, Colorado Democrats created a first-in-the-nation refundable income tax credit that incentivizes business owners to move towards employee-owned business models. It allows business owners that are looking to move on from the company to pass the business on to employees, allowing the business to stay within the community and giving hard-working Coloradans a stake in the company.
HB23-1081 expands on the Employee Ownership Tax Credit by:
Making partially employee-owned businesses eligible to help cover the costs associated with expanding employee ownership;
Permitting new methods that businesses are using to transfer equity to employees; and
Strengthening incentives for eligible businesses that are transitioning to employee ownership with existing resources.