HB1047

AN ACT to amend Tennessee Code Annotated, Title 4; Title 8; Title 9; Title 12, Chapter 3; Title 45; Title 50; Title 56, Chapter 1 and Title 67, relative to employee-owned businesses.

Introduced·2/5/25
Draft Text

Employee Ownership, Empowerment, and Expansion Act incentivizes businesses to transition to employee ownership models.

The Employee Ownership, Empowerment, and Expansion Act amends Tennessee Code to provide tax incentives for businesses converting to employee ownership models. It defines "Tennessee employee-owned business" as a for-profit entity at least 51% owned by employees through trusts, stock plans, or cooperatives. The act allows a tax credit for up to 50% of conversion costs, up to $25,000 for cooperatives or trusts and $100,000 for stock plans. It also exempts these employee-owned entities from certain taxes.

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

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Where it stands

Current
In committee
Next
Committee decision

Sponsors

0
1
R
Democratic CaucusRepublican Caucus

Calendar

Jan 21

3:00 PM

House Business & Utilities Subcommittee Hearing

Mar 19, 2025

3:00 PM

House Business & Utilities Subcommittee Hearing

History

Jan 21

House

Taken off notice for cal in s/c Business and Utilities Subcommittee of Commerce Committee

Jan 14

House

Placed on s/c cal Business & Utilities Subcommittee for 1/21/2026

Mar 19, 2025

House

No Action Taken