Current Policy:
- In 2023, a comprehensive bill (SB 5096) was passed unanimously, providing tax credits of up to $100,000 for ESOPs and $25,000 for co-ops/trusts to offset conversion costs.
- $2 million allocated for the tax credit program.
- A full-time employee hired in the State Department of Commerce to support employee ownership.
Policy in review:
- Establishing a revolving loan program through federal government support to help fund ESOP transitions.
Suggested policy:
- Federal revolving loan program to support ESOP transitions in states like Washington where there are constitutional prohibitions against state-funded loans.
Quantitative data:
- Around 93 ESOPs in Washington state, with the number growing.
- One company (Schwitzer Engineering) has 6,500 employee-owners, with many retiring as millionaires.