Update as of September 15, 2016: Governor Nixon vetoed the bill at the end of June, however, the Missouri General Assembly has now overridden the veto and passed the bill to be effective as of October 14, 2016.
MO lawmakers recently approved House Bill 2030, which would provide a 50% income tax deduction on the proceeds business owners receive when selling at least 30% of their company to its employees. Once signed by Governor Nixon, the bill would authorize an income tax deduction for 50% of the net capital gain from the sale or exchange of employer securities of a Missouri corporation to a qualified Missouri employee stock ownership plan if, upon completion of the transaction, the qualified Missouri employee stock ownership plan owns at least 30% of all outstanding employer securities issued by the Missouri corporation. Beginning in 2017 and lasting for six years, the bill’s provisions would expire as of calendar year end 2022.