An act relating to creating an enhanced growth incentive for employee-owned businesses

This bill creates a new enhanced incentive within Vermont's Vermont Employment Growth Incentive Program (VEGI) specifically for employee-owned businesses. It directly affects qualifying employee-owned businesses (including worker cooperatives and ESOPs) applying for VEGI funding by increasing their share of state funds from 80% to 90% of new revenue growth generated. Key changes include a modified payroll calculation method and a specific definition for "employee-owned business" that aligns with federal tax definitions. The goal is to support these locally controlled businesses, which typically offer higher wages and benefits, by providing a stronger financial incentive for growth. The incentive becomes effective July 1, 2025.