OLR Bill Analysis

sHB 5023

AN ACT CONCERNING ELIGIBILITY FOR THE APPRENTICESHIP TRAINING TAX CREDIT.

SUMMARY:

This bill extends to open (nonunion) shops the corporation tax credit for hiring construction trade apprentices that is now available only to businesses that sponsor a four-year apprenticeship program jointly with a union. To qualify currently for a credit, an apprenticeship program must provide between 4,000 and 8,000 hours of training and be (1) administered according to a federal labor-relations law, (2) certified by the labor commissioner, and (3) registered with the State Apprenticeship Council. The bill eliminates the reference to the federal law.

The credit is for up to $ 1,000 per year per apprentice or 50% of the apprentice's annual wages, whichever is less. A business's total annual credit cannot exceed its tax liability for the year.

EFFECTIVE DATE: July 1, 2006

COMMITTEE ACTION

Higher Education and Employment Advancement Committee

Joint Favorable Substitute Change of Reference

Finance, Revenue and Bonding Committee

Joint Favorable