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| 2 | 2 | | HOUSE DOCKET, NO. 1397 FILED ON: 1/14/2025 |
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| 3 | 3 | | HOUSE . . . . . . . . . . . . . . . No. 3079 |
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| 4 | 4 | | The Commonwealth of Massachusetts |
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| 5 | 5 | | _________________ |
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| 6 | 6 | | PRESENTED BY: |
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| 7 | 7 | | Kip A. Diggs |
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| 8 | 8 | | _________________ |
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| 9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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| 10 | 10 | | Court assembled: |
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| 11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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| 12 | 12 | | An Act to promote employee ownership. |
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| 13 | 13 | | _______________ |
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| 14 | 14 | | PETITION OF: |
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| 15 | 15 | | NAME:DISTRICT/ADDRESS :DATE ADDED:Kip A. Diggs2nd Barnstable1/14/2025 1 of 1 |
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| 16 | 16 | | HOUSE DOCKET, NO. 1397 FILED ON: 1/14/2025 |
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| 17 | 17 | | HOUSE . . . . . . . . . . . . . . . No. 3079 |
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| 18 | 18 | | By Representative Diggs of Barnstable, a petition (accompanied by bill, House, No. 3079) of Kip |
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| 19 | 19 | | A. Diggs relative to the taxation of certain business corporations sponsoring employee stock |
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| 20 | 20 | | ownership plans. Revenue. |
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| 21 | 21 | | [SIMILAR MATTER FILED IN PREVIOUS SESSION |
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| 22 | 22 | | SEE HOUSE, NO. 2769 OF 2023-2024.] |
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| 23 | 23 | | The Commonwealth of Massachusetts |
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| 24 | 24 | | _______________ |
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| 25 | 25 | | In the One Hundred and Ninety-Fourth General Court |
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| 26 | 26 | | (2025-2026) |
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| 27 | 27 | | _______________ |
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| 28 | 28 | | An Act to promote employee ownership. |
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| 29 | 29 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 30 | 30 | | of the same, as follows: |
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| 31 | 31 | | 1 Chapter 63 of the General Laws, as appearing in the 2020 Official Edition, is hereby |
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| 32 | 32 | | 2amended by inserting, after section 38FF, the following new section:- |
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| 33 | 33 | | 3 Section 38GG. In determining the net income subject to tax under this chapter, a business |
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| 34 | 34 | | 4corporation may deduct an amount equal to its earnings from capital gains from the sale of |
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| 35 | 35 | | 5employer securities of a non-publicly traded business with fewer than 500 employees to an |
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| 36 | 36 | | 6employee stock ownership plan, as defined in chapter 23D, that owns no less than 49 per cent of |
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| 37 | 37 | | 7all outstanding employer securities issued by the business; provided, however, that the business |
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| 38 | 38 | | 8corporation must be the sponsor of the employee stock ownership plan. |
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