Manufacturers are key to Connecticut's economy. Yet we have a significant manufacturing workforce shortage and little is being done to address the problem. However, the legislature still has time to take action on a small measure that Connecticut manufacturers believe could be a big help.
Currently before the state legislature is SB 370 with a very special amendment filed on that bill. The amendment would extend the state’s manufacturing apprenticeship tax credit to pass-through entities.
Most, but not all, small and midsize manufacturers are pass-through entities (S corps, limited liability corporations and sole proprietorships. While C corporations are currently eligible for the apprenticeship tax credit, pass-through entities are not.
According to the Department of Labor, Connecticut currently has only 150 manufacturing apprentices. A quick review of those 150 apprentices shows that at a minimum, 54, or more than one third, are C corporations or government entities.
This means if this measure were to be adopted the annual fiscal impact of this measure is likely to be less than $400,000--yet the positive impact this could have for apprentices and manufacturers could be significant. Clearly the positives outweigh the negatives.
In order for Connecticut’s economic climate to improve, we need to have both job opportunities and the people with the skills to fill those jobs. Connecticut currently has the former but not the latter.
CBIA urges the legislature to extend the manufacturing apprenticeship tax credit to pass-through entities effective Jan. 1, 2015, so we can begin to rebuild the strong skilled and manufacturing workforce in Connecticut we once had.
The manufacturing community urges Connecticut legislators to act now. Delay in this matter is too costly.