Legislation will provide much-needed incentive to employers
On Wednesday, Senator Nancy King (R-39) introduced legislation, Senate Bill 273, which would allow small businesses to receive tax credits for every employee they sponsor to participate in a state-approved apprenticeship training program.
The bill would allow an individual or a corporation that employs apprentices to claim a credit against their state income tax for each apprentice that is employed for at least 7 months during the taxable year.
The credit would provide incentives and funding for apprenticeship programs in the construction industry. Construction apprenticeship programs provide many benefits for a contractor. The on-the-job training and job-related education gives employees a full understanding of important measures such as quality, safety, and customer service. Companies committed to investing time and education into its apprentices build a loyal team of skilled workers and see reduced turnover and increased productivity. Registered apprenticeship ensures a system dedicated to the transfer of knowledge from experienced employees to new recruits.
Although apprenticeship programs are reasonably priced compared to college, there are still costs involved for the employer. Frank Murphy, the President of Tissa Enterprises Inc. says the credit will “provide companies with a financial incentive to further train their apprentices.”
There are costs associated with contractors that perform prevailing wage and place their employees into apprenticeship programs and Murphy explained the credit “will help offset the administrative costs that come with the placement and retention of apprentices.”
Small business owners believe the tax credit will draw much needed attention to apprenticeship training and the opportunity it provides individuals to pursue a career as a skilled craft worker.