New Jersey Introduces Pro ESOP Legistlation for S-Corporations
Assemblyman Upendra Chivulula (NJ Disctric 17), the deputy speaker of the New Jersey State Assembly, introduced a bill to exclude from taxation any gains on the sale of at least 30% of a company to an ESOP or eligible worker cooperative (as defined by Section 1042 of the Internal Revenue Code).
Unlike federal law, the bill includes sales to ESOP in S corporations.
Qualified companies include those employing less than 500 employees and not traded on a public exchange. This bill, should it be enacted would incentivize NJ businesses to establish employee stock ownership plans and enhance their employees' retirement benefits without cost.
See http://legiscan.com/NJ/text/A3626 for details.