Proposals to Boost Manufacturing Workforce
Many manufacturers are frustrated that they can’t find enough individuals with the skills needed to fill open positions, but two proposals in the Commerce Committee and two in the Finance Committee are designed to help solve that problem.
Apprenticeship Tax Credits
The state’s manufacturing apprenticeship tax credit is an important financial tool that enables many small and midsize manufacturers to develop new talent. SB 1079 in the Commerce Committee and SB 1055 in the Finance Committee increase the value of the tax credit to reflect both the high cost of training apprentices and manufacturers’ critical need for skilled workers.
There’s also a measure in the Finance Committee, SB 1053, that would extend eligibility for the Apprenticeship Training Tax Credit to pass through entitites.
Many small and midsize manufacturers are S corporations and currently aren’t permitted to use the credit. Permitting the S corporations to use the Apprenticeship Training Tax Credit would encourage ore employers to have such programs at their companies as well as grant apprenticeship opportunities to more individuals seeking those positions.
HB 5018 creates a tax credit for businesses that donate more than $2,500 to scholarships that help Connecticut students attend manufacturing training programs in the state. Contributing to a scholarship for future manufacturing workers force in exchange for a small state tax credit should be seen as a good investment in the future by many manufacturers.
All four of these measures help to get around the skilled worker shortage by helping “create” new skilled workers through training. This will help ensure manufacturers in the state have a supply of highly skilled workers in the future.
‘Expressly’ for Manufacturers
In another manufacturing-related development this week, Governor Malloy signed into law SB 801, which allows funding from the state’s Manufacturer’s Assistance Account that’s already designated for small business development to be used for the Small Business Express program.
The Small Business Express provides matching grants and loans under a streamlined application process to businesses with fewer than 100 employees.
Eligible businesses can use the funds to acquire machinery and equipment; construct facilities or make improvements; or meet working capital needs.
For more information, contact CBIA’s Eric Gjede at 860.244.1931 or email@example.com.
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