Manufacturing Innovation Fund: Last year, the legislature established the Connecticut Manufacturing Innovation Fund and approved $30 million in bonding for its operations.
The Department of Economic and Community Development has been working with the fund’s advisory board to get programs to support Connecticut’s manufacturers up and running.
Two Innovation Fund programs are either now available or will be soon:
- Voucher Program: Manufacturers can use this program for capital investments, process improvements (such as LEAN) or certain other training programs. The voucher program provides a 50-50 grant match. So, if you invest $5,000 in one of these programs the voucher program will grant another $5,000. The vouchers are awarded on a first-come, first-served basis. Applications are now being accepted.
- Incumbent Worker Training: This program, coming soon, will support incumbent worker training with matching grants for employers with fewer than 2,000 employees. If a company invests $5,000 in a training program, the fund will match it with another $5,000 and provide access to additional matching grants up to $50,000 for a project totaling $100,000.
Manufacturing Apprenticeship Tax Credit
Connecticut manufacturers are facing a shortage of skilled talent. It’s been estimated that by the end of this year, state manufacturers will need to fill more than 1,400 key positions.
Responding to the critical need to expand the talent pipeline, the legislature last year passed a manufacturing apprenticeship tax credit for pass-through entities (such as S corps, LLCs and others).
But some businesses have found the existing tax credit to be difficult to use.
SB 1017 updates and makes more usable the Manufacturing Apprenticeship Tax Credit.
The revision allows pass-through entities to apply the credit against sales taxes due to the state or sold to other entities where they can be applied against gross earnings and certain other taxes, not just the Business Corporation Tax. (#MoveCTUP)