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Assemblyman Upendra Chivulula (NJ Disctric 17), the deputy speaker of the New Jersey State Assembly, introduced a bill to exclude from taxation any gains on the sale of at least 30% of a company to an ESOP or eligible worker cooperative (as defined by Section 1042 of the Internal Revenue Code).

Unlike federal law, the bill includes sales to ESOP in S corporations. 

Qualified companies include those employing less than 500 employees and not traded on a public exchange.  This bill, should it be enacted would incentivize NJ businesses to establish employee stock ownership plans and enhance their employees' retirement benefits without cost.

See for details.