Employee Stock Ownership Plan awaits governor’s signature
A bill designed to keep businesses in Missouri is on its way to Governor Nixon’s desk.
House Bill 2030, sponsored by Rep. Denny Hoskins, authorizes an income tax deduction for 50% of the net capital gain from the sale or exchange of employer securities of a Missouri corporation to a qualified Missouri employee stock ownership plan if, upon completion of the transaction, the qualified Missouri employee stock ownership plan owns at least 30% of all outstanding employer securities issued by the Missouri corporation.
Hoskins and supporters say the bill allows business owners to sell their companies to their employees without taking a huge tax hit, as they would under current law.
“This bill is perfect for business owners,” said Callaway County State Representative Travis Fitzwater during floor debate on the bill Tuesday. “As a matter of fact, I have a business owner right now in my district that is waiting for this bill to go through so he can retire and sell his business to his employees.”
“This bill is for Missouri, this bill is for Missouri workers,” said Rep. Hoskins.
The measure was given final passage in the House by a margin of 128-14.
A signature by Governor Nixon will make the bill law.