Governor Terry E. Branstad toured Timberline Manufacturing in Marion, Iowa, today to highlight the advantages of employee stock ownership plans (ESOPs) and Iowa's incentive programs that make it easier for businesses in transition to further explore this business structure.
"ESOPs can help keep companies -- and the jobs they provide -- in local communities," said Branstad. "ESOPs are more than just an employee benefit plan, they are a transition plan for business owners and a growth strategy for communities."
Over the past two legislative sessions, the Iowa Economic Development Authority (IEDA) proposed programming to encourage companies and owners to explore the creation of ESOPs. Legislation was passed and enacted to provide a 50 percent capital gains tax deduction for businesses owners who sell their companies to their employees through a qualified ESOP. Further, a new program to provide financial assistance for ESOP formation is available to Iowa businesses as well.
A public-private partnership with ESOP professionals from around the state has been formed to help educate and inform Iowa businesses about the advantages of forming ESOPs and the incentives that are available to help.
The partners working with IEDA in this effort include the Principal Financial Group, Banker's Trust, Nyemaster Goode Law Firm and Prairie Capital Advisors.
Educational sessions will be held across the state and will take place in November and December at the following dates and locations:
Nov. 21 -- Council Bluffs and Sioux City
Dec. 4 -- Des Moines
Dec. 5 -- Bettendorf and Dubuque
Dec. 11 -- Cedar Rapids and Waterloo
Dec. 12 -- Mason City and Ft. Dodge
Businesses interested in attending a session can contact Jerry Ripperger at the Principal Financial Group at 515-248-2240 or via email at firstname.lastname@example.org.