H7696

Rhode Island H7696 establishes a tax credit for businesses transitioning to employee ownership.

Rhode Island H7696 creates a tax credit for businesses transitioning to employee ownership. The bill defines terms such as "employee ownership trust" and "alternate equity structure." It outlines the process for businesses to apply for the tax credit, including submitting an application with details about conversion or expansion costs. The credit is available for costs incurred between January 1, 2026, and January 1, 2029, with a maximum annual limit of $1,000,000. The credit can be up to 50% of conversion costs, not exceeding $100,000, or 50% of expansion costs, not exceeding $25,000.