Iowa Legislature Approves an ESOP Formation Assistance Fund

The Iowa legislature recently passed a bill appropriating $500,000 per year to help offset the costs of determining whether an ESOP is an appropriate strategy for the business owner, the company, and the employees. The fund will be administered by the Iowa Economic Development Authority with the help of local ESOP experts, including service providers and representatives from ESOP companies. Last year, Iowa also passed a law providing a state-level capital gains exclusion for sellers to an ESOP under certain circumstances. For more information about the fund, read this article in the Corridor Business Journal or see the ESOP Incentive information page (PDF) from Iowa Economic Development.