At the Rocky Mountain Employee Ownership Center (RMEOC), we believe that supportive public policies are essential for scaling the employee ownership (EO) movement and promoting a more just and sustainable economic system.
Our Research & Policy initiatives focus on advocating for and developing policies that promote EO, particularly through cooperatives.
We are actively engaged in the following policy areas to strengthen and expand the EO movement:
Development of Social Cooperatives
We advocate for legislation that creates tax benefits for social cooperatives and organizations supporting marginalized communities. Social cooperatives are designed to fulfill a public benefit mission, prioritizing community well-being over profit maximization.
Indivisible Reserves
We support policies that allow cooperatives to set aside some net earnings, tax-free, for future purposes that support the cooperative's mission and sustainability. This model has been successfully implemented in countries like Italy, Quebec, and Spain.
Right of First Refusal
We promote legislation granting employees the first right to purchase the business they work at, ensuring that ownership stays within the workforce and preventing displacement. A significant majority of Americans, 69%, support this policy.
Tax Incentives for Selling Owners
We advocate for increased tax incentives at the local and federal levels for business owners who sell their businesses to their employees, making employee ownership more accessible and attractive.
Preferred Procurement for Cooperatives
Preferred Procurement for Cooperatives
We encourage cities, states, and the federal government to pass policies granting preferred procurement and contracting rights to employee-owned businesses, enhancing their competitiveness and market access.
Right of First Refusal
We promote legislation granting employees the first right to purchase the business they work at, ensuring that ownership stays within the workforce and preventing displacement. A significant majority of Americans, 69%, support this policy.

Join us in advancing the employee ownership movement through policy and legislation. Here's how you can get involved:
Together, we can create a more just and equitable economy through the expansion of employee ownership.
Across the U.S., states are introducing new incentives to make employee ownership more accessible. Examples include tax credits for conversion costs, capital gains tax exclusions for selling owners, and grants for technical assistance. Colorado leads the nation with up to 75% tax credits for conversions and federal deductions for cooperatives starting in 2026. These policies help business owners transition ownership while ensuring long-term local stability.
Some cities and states grant preferred procurement status to employee-owned businesses—similar to programs for minority-owned or women-owned enterprises. This gives cooperatives a fairer chance in public contracting. RMEOC advocates for these policies at both the state and city levels to expand opportunities for worker-owned firms.
The Right of First Refusal ensures that if a business is being sold, employees get the first opportunity to buy it before outside buyers. This prevents closures and keeps ownership local. Nearly 70% of Americans support this policy, which RMEOC promotes as a tool for preserving community-based businesses.