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Legislative Support for Employee Ownership is Taking Off in New Jersey
New Jersey joins a growing number of states promoting employee ownership
Overview: In his 2024 fiscal year budget, Governor Phil Murphy of New Jersey has proposed providing $6 million a year in grants to companies making the transition to employee ownership. Worker co-ops, EOTs and ESOPs would all qualify for the grants.
Why It Matters: New Jersey will join a growing list of states that providing monetary assistance to firms making the transition to employee ownership. In 2021, Governor Jared Polis of Colorado signed HB 21-1311 into law, providing a 50% tax credit of 50% of the conversion cost for ESOPs, EOTs and worker cooperatives. In 2022, former Massachusetts Governor Charlie Baker signed S.261/H.511, establishing a state Employee Ownership Center that will provide grants and other support to firms transitioning to employee ownership. Though the legislation may vary, each of these states can serve as a model for future state legislatures on employee ownership legislation.
Dig Deeper: To learn more about EO and all of its forms, take a look at Employee Ownership 101 by our friends at the the Texas Center for Employee Ownership.