Iowa House approves worker stock-ownership plan

AP News
Posted: Feb 16, 2012 11:53 AM
Iowa House approves worker stock-ownership plan

The Iowa House has overwhelmingly backed a plan costing $1 million that encourages privately held businesses to let workers buy an ownership stake.

Supporters say ownership in companies would give workers a powerful stake in making the businesses a success. It also could be a tool to prevent companies from moving out of state.

The House approved the measure Thursday on a 93-2 vote, sending it to the Senate where approval is also likely.

The money included in the bill would help companies finance the switch to employee ownership.

Some lawmakers say they support the concept, but want to study where the money will come from.

The measure also would give owners an exemption from paying capital gains taxes when they sell a business to employees, costing an additional $700,000.