The legislature’s Manufacturing Caucus is off to a strong start after holding a meeting and public information session to discuss priorities for 2015.
The caucus heard about the manufacturing communities’ priorities for the upcoming session, with a focus on a skilled workforce and creating an environment where manufacturers can continue to grow and innovate in Connecticut.
Here are the highlights:
Apprenticeship Tax Credit
While the legislature passed an apprenticeship tax credit for pass-through entities (businesses corporations, Limited Liability Companies and Limited Liability Partnerships) in 2014, it hasn’t had the benefit that was intended.
Manufacturers say, because it isn’t working as drafted, it needs to be fixed.
Manufacturers want to see the law changed to make it more useable. An effective apprenticeship tax credit will support Connecticut’s manufacturers to train the talent they need to continue to grow and innovate here in Connecticut.
The Connecticut Manufacturing Innovation Fund, created by the legislature last year, has launched its first program. It’s a voucher program in which manufacturers can apply for matching financial assistance for innovative projects to make them more profitable, productive, and efficient. (If you are interested, the application can be found here.)
The Manufacturing Innovation Fund still has millions more to spend, so qualified manufacturers should take advantage of the opportunity.
CBIA will continue to monitor the fund and keep you posted as new programs are approved.
For more information, contact CBIA’s Jennifer Herz at 860.244.1921 | email@example.com | @CBIAjherz
R&D Tax Credit
Another important tax credit for many Connecticut employers, including manufacturers, is the state’s research and development (R&D) tax credit.
However, most Connecticut employers are not permitted to earn the R&D credit. But there’s an effort to extend the credit to pass-through entities as well.
As could be expected, extending the R&D tax credit comes with a fiscal note, though we believe increasing R&D activities will result in increased economic activities and thus the tax credit would be a revenue generator.
Still, this will be an uphill battle in a tough budget year. Creative solutions, however, are being pursued and discussed with legislators.
Finally, implementing regulatory reforms that streamline, clarify and expedite–where appropriate–are key to creating an environment where manufacturers can continue to innovate and grow.
CBIA is continuing to work with legislators and the Governor’s office on eliminating onerous regulations and analyzing the current regulatory process.
A well intentioned but flawed proposal designed to create a Connecticut-specific list of potentially harmful chemicals was the subject of a public hearing by the Children's Committee.
HB 5653 conveys the impression that children in Connecticut are not already adequately protected, despite the strong safeguards contained in numerous federal laws.
Imposing regulations and restrictions unique to Connecticut would be a serious blow to many manufacturers across the state that produce, utilize or manufacture products from chemicals every day.
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