S.1950

To promote employee ownership

Introduced·2/27/25
Introduced Text

Massachusetts S1950 amends tax law to allow businesses to deduct earnings from capital gains on employer securities sold to employee stock ownership.

Massachusetts S1950 amends Chapter 63 of the General Laws to allow business corporations to deduct earnings from capital gains on the sale of employer securities to an employee stock ownership plan. This deduction applies to non-publicly traded businesses with fewer than 500 employees. The employee stock ownership plan must own at least 49 percent of all outstanding employer securities issued by the business, and the business corporation must be the sponsor of the plan.

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  • Overview
  • Core Provisions
  • Implementation
  • Impact
  • Legal Framework
  • Critical Issues

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Where it stands

Current
Ways and Means Committee
Next
Committee decision

Sponsors

D
1
0
Democratic CaucusRepublican Caucus

Calendar

Oct 28, 2025

1:00 PM

Joint Committee on Revenue Hearing

History

Jun 29

House

Bill reported favorably by committee and referred to the committee on House Ways and Means

Apr 1

Senate

Reporting date extended to Thursday June 25, 2026

Oct 21, 2025

Joint

Hearing scheduled for 10/28/2025 from 01:00 PM-05:00 PM in B-2