Kelly: New law will help grow manufacturing industry
State Senator Kevin C. Kelly (R-21) applauded the passage of a law which expands the state’s manufacturing apprenticeship tax credit.
“The passage of this bill means jobs — good paying jobs — in our community,” said Kelly. “It also sends a positive message to manufacturing companies that may be considering expanding their operations or even relocating to our state.”
Kelly is a member of the legislature’s Manufacturing Caucus. The goal of the bipartisan group has been to learn about the opportunities and challenges facing the state’s manufacturers to more effectively support and help them grow in today’s global market.
“After touring manufacturers in our district, I heard that employers would hire workers if they could find people who were qualified to do the work,” said Kelly, whose district includes Shelton. “This bill will help to get more people trained and qualified for those available jobs.”
Increases business tax credit
The law (Senate Bill 1079) increases the corporation business tax credit for hiring apprentices in the manufacturing trades from $4 to $6 per hour.
It also raises the annual cap on the total amount of credit a business can claim for this purpose, from $4,800, or 50% of the actual apprentice wages, to $7,500, or 50% of such wages. The law would take effect July 1, 2015 and be applicable to income years beginning on or after Jan. 1, 2015.
By law, unchanged by the bill, the period for claiming the credit depends on whether the apprenticeship is for two or four years. The period is the first year for two-year apprenticeship programs and three years for four-year programs. Such programs must be certified by the labor commissioner and registered with the Connecticut State Apprenticeship Council.
The bill passed unanimously in both the Senate and the House of Representatives and was signed into law by Gov. Dannel P. Malloy on July 11.