Bills Target Student Loan Tax Credits, Women in Manufacturing

With 75,000 job openings across the state, employers are urging lawmakers to develop policy decisions through a simple yet effective lens: Does this legislation promote affordability and support the state’s workforce?

Members of the Higher Education and Employment Advancement Committee introduced several bills in the 2025 legislative session designed to recruit, retain, and support workers and local businesses across the state. 

Just this past week, the business community expressed support for two key bills gaining traction: HB 6884 and SB 1260, both focused on growing the state’s workforce.

Student Loan Tax Credits

HB 6884 allows small businesses to access the current tax credit available to larger employers making student loan payments on behalf of employees.

Two years ago, the legislature expanded student loan payment tax credits to include all types of student loans, an essential tool for attracting and retaining talent and making Connecticut more affordable.

Current law limits the student loan tax credit to larger employers.

While this expansion was a positive step, current law limits the credit to larger employers, excluding more than 120,000 small employers registered as pass-through entities.

This restriction prevents small business employees from using the credit, directly affecting the affordability of small businesses and their ability to attract and retain skilled workers.

CBIA recommends expanding eligibility to include pass-through entities, allowing small businesses to fully leverage this tax benefit and enhance their ability to recruit and retain employees.

Women in Manufacturing

SB 1260 expands manufacturing training opportunities for women, reflecting national efforts to close the labor participation rate between men and women and address the sector’s labor shortage.

CBIA supports for the bill, which is co-sponsored by senators Saud Anwar (D-South Windsor) and Sujata Gadkar-Wilcox (D-Trumbull) .

According to CBIA’s 2022 Connecticut Manufacturing Report, 87% of manufacturers struggle with both finding and retaining employees, with 44% citing a shortage of skilled applicants as their biggest barrier to growth.

Census data reveals a significant gender gap in manufacturing, with women substantially underrepresented.

Census data also reveals a significant gender gap in manufacturing, with women substantially underrepresented in the field compared to their male counterparts.

Building strong workforce pipelines to engage more young women in manufacturing not only benefits the industry but also strengthens Connecticut’s broader economic climate.

The business community acknowledges the urgent need for enhanced outreach to recruit, retain, and support qualified workers, while fostering job growth and strengthening the economy.

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For more information, contact CBIA’s Jenna Grasso (860.244.1169).