Employee Ownership Blog | Kevin McPhillips

Kevin McPhillips

November 02, 2022

The PaCEO Holds Press Conference for EO Month and New Bill

On October 26, 2022, Pennsylvania celebrated Employee Ownership Month with a press conference in the Capitol Rotunda in Harrisburg. The celebration included a citation honoring the nonprofit Pennsylvania Center for Employee Ownership (PaCEO), but more importantly, it included the formal introduction of PA House Bill HB-2888, establishing a Pennsylvania Office of Employee Ownership, and the introduction of the Pennsylvania Employee Ownership Assistance Act.

Kevin McPhillips

February 01, 2022

Guest Blog: New EO Legislation Passes in PA

The Pennsylvania Center for Employee Ownership is pleased to announce that employee ownership legislation has successfully passed in the Pennsylvania House and is on to the Senate. Pennsylvania is one of only a small number of states that do not currently mirror the federal Section 1042 rules. By making an election under Section 1042, sellers of C corporations can defer 100% of capital gains tax when selling to their employees in an ESOP. The bill (PA HB-285) would adopt the rules of Section 1042 (as well as Section 402(e)(4), regarding net unrealized appreciation) in Pennsylvania state tax law.