Lawmakers consider tax incentives to promote employee ownership
Wisconsin lawmakers considered new tax incentives meant to encourage the development of more employee-owned businesses and cooperatives and to promote safe gun storage. Both measures drew bipartisan support during a hearing Tuesday in the Assembly Way and Means Committee.
One bill — AB 17 — would provide a tax credit to businesses that make the transition to a model that gives employees a stake. The credit would cover 70% of the costs for converting a business to a worker-owned cooperative or 50% of the costs for converting the business to an employee stock ownership plan. Businesses could receive a maximum of $100,000 from the tax credit.
Tangible, positive impact
James said the tax incentive would help businesses considering switching because the conversion process can be complicated and expensive.
According to the National Center for Employee Ownership, a transition to a worker-owned model can initially cost between $10,000 and $30,000. Converting to an employee stock ownership plan can generally cost between $100,000 and $300,000, with ongoing costs of $20,000 to $30,000 a year.
Several Wisconsinites who have benefited from making the switch testified in favor of the bill.
John Dally, a veterinarian, said it would provide “critical support” for cooperatives in Wisconsin. Dally started a practice about 20 years ago with a colleague in Spring Green, and in 2020, they acquired another location in Mazomanie.
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