On April 2, 2014 Missouri State Representative, Noel Torpey (R), introduced Missouri House Bill No. 2268, which authorizes a tax credit for companies with an ESOP. From the proposed bill: “This bill authorizes employers a tax credit of 10% of the amount contributed to an employee stock ownership program. The credit is not refundable and cannot be sold or transferred. The credit can be carried forward up to three years. The credit is capped at $10 million annually and $500,000 per employer.”
In recent years, a similar bill became law in Iowa and such a bill is pending the New Jersey legislature.
“As I’ve said before, it’s very encouraging to see states considering bills to facilitate ESOP creation,” said ESOP Association President, J. Michael Keeling. “Indiana, Iowa, New Jersey, and now Missouri, are leading the way on the state level and clearly more state officers are seeing the benefits that employee-owned companies bring to the local economy.”