Massachusetts S1783 proposes a tax deduction for businesses selling employer securities to employee stock ownership plans.
Massachusetts S1783 amends Chapter 63 of the General Laws to allow businesses with fewer than 500 employees to deduct earnings from capital gains when selling employer securities to an employee stock ownership plan. This deduction applies if the plan owns at least 49% of the business's outstanding employer securities. The business must sponsor the employee stock ownership plan. This change aims to promote employee ownership by providing a tax incentive for businesses to transfer ownership to their employees.
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