Economic and Community Development - As introduced, enacts the "Employee Ownership, Empowerment, and Expansion Act" to support the growth and expansion of employee-owned businesses. - Amends TCA Title 4; Title 8; Title 9; Title 12, Chapter 3; Title 45; Title 50; Title 56, Chapter 1 and Title 67.

SB 40, the "Employee Ownership, Empowerment, and Expansion Act," creates a state tax credit for businesses transitioning to employee ownership structures like employee stock ownership plans (ESOPs), employee ownership trusts, or worker cooperatives. The credit covers up to 50% of transition costs (capped at $25,000 for trusts/cooperatives or $100,000 for ESOPs) for tax years 2026-2030, with businesses required to apply through the state tax department. The bill also exempts employee-owned businesses from certain state taxes and mandates outreach to minority-owned businesses about the credit. Unused credits can be carried forward for up to 25 years.