OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ¯ (860) 240-0200
http: //www. cga. ct. gov/ofa
sHB-5023
AN ACT CONCERNING ELIGIBILITY FOR THE APPRENTICESHIP TRAINING TAX CREDIT.
As Amended by House "A" (LCO 4838)
House Calendar No. : 369
OFA Fiscal Note
Agency Affected |
Fund-Effect |
Department of Revenue Services |
GF - See Below |
Note: GF=General Fund
Explanation
The bill changes the corporation business tax credit for apprenticeship training programs in the construction trades. The anticipated fiscal impact is summarized in the table below.
Agency Affected |
Fund |
FY 07 through FY 10 |
FY 11 and after |
Department of Revenue Services |
GF |
Reduce Revenue Loss for credit |
Increase Revenue Loss for credit |
FY 07 through FY 10: The bill changes when companies can claim the credit from (a) an annual credit that is available for 4 years to (b) a credit that is only available once, on completion of a 4-year program. This is expected to reduce the revenue loss associated with the credit in FY 07, FY 08, FY 09 and FY 10.
FY 11 and after: The bill broadens the credit by making it available for both union and nonunion apprenticeship programs. The bill also permits companies to take all of the credit in one year for a 4-year apprenticeship. This is expected to increase the revenue loss associated with the credit for FY 11 and succeeding years.
House “A” strikes the original bill and has the fiscal impact indicated above.
Background
Under current law, the corporation business tax credit for apprenticeship training programs in the construction trades is only available for union-supervised programs. The credit is available for each of 4 years and the amount is equal to either $1,000 per each apprenticeship or 50% of the actual wages paid. The bill changes the credit so that: (1) it is available for both union and nonunion programs, (2) it is only available once, on completion of a 4-year program, and (3) the amount of the credit is either $4,000 or 50% of the actual wages paid over 4 years.
The table below shows the number of companies and amount claimed under the Apprenticeship Credit program.
Data on the Corp. Tax Credit for Apprenticeship Programs | ||
Income Year |
Number of Companies |
Total Claimed |
1999 |
65 |
$435,903 |
2000 |
78 |
557,725 |
2001 |
37 |
274,150 |
2003 |
9 |
1,198,667 |
2002 income year data not available | ||
The Out Years
The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either House thereof for any purpose.