HB1047In Committee

Employee Ownership, Empowerment, and Expansion Act

Amends TCA Title 4; Title 8; Title 9; Title 12, Chapter 3; Title 45; Title 50; Title 56, Chapter 1 and Title 67.

Tennessee HB1047, titled the "Employee Ownership, Empowerment, and Expansion Act," aims to create tax incentives for businesses to establish employee stock ownership plans, employee ownership trusts, or convert to worker-owned cooperatives. The bill affects qualified businesses subject to state excise tax and includes provisions for tax credits covering up to 50% of conversion costs, with specific caps based on the type of ownership structure. Additionally, it exempts worker-owned cooperatives and related entities from certain taxes and extends existing procurement laws to include employee-owned businesses.

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Overview

Tennessee HB1047, titled the "Employee Ownership, Empowerment, and Expansion Act," aims to create tax incentives for businesses to establish employee stock ownership plans, employee ownership trusts, or convert to worker-owned cooperatives. The bill affects qualified businesses subject to state excise tax and includes provisions for tax credits covering up to 50% of conversion costs, with specific caps based on the type of ownership structure. Additionally, it exempts worker-owned cooperatives and related entities from certain taxes and extends existing procurement laws to include employee-owned businesses.

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Sponsor

Marsh, Pat

Details
Session

114th General Assembly

Introduced

February 5, 2025

Last Action

January 21, 2026

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

Subjects
Economic and Community DevelopmentTaxes, ExciseTaxes, BusinessTaxesEmployees, Employers

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HB1047: Employee Ownership, Empowerment, and Expansion Act | LegisGo