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