According to this week’s Employee Ownership Update, written by NCEO’s Executive Director Loren Rogers, Iowa Governor Terry Branstad announced in his Condition of the State speech on January 10 that promoting employee ownership would be one of his three top economic priorities. The Republican governor announced three main tools to support employee ownership:
- Business owners would not have to pay state capital gains taxes for sales to ESOPs. That rate is 9% in Iowa.
- The Economic Development Authority (EDA) would offer technical assistance and legal advice to employee buyers and companies, including help to pay for feasibility assessments.
- The EDA would also work to make people more aware of ESOPs and how they work.
The proposal has broad bipartisan support and is expected to pass.