SB 302 — AN ACT EXPANDING THE TAX CREDIT FOR QUALIFIED APPRENTICESHIP TRAINING PROGRAMS AND ESTABLISHING A PILOT PROGRAM FOR CHILDREN INTERESTED IN TRADES.

General Assembly SubstituteRaised Bill No.

302 February Session, 2024 ANLCO ACTNo. EXPANDING THE TAX CREDIT FOR QUALIFIED APPRENTICESHIP TRAINING PROGRAMS AND ESTABLISHING A PILOT PROGRAM FOR CHILDREN INTERESTED IN TRADES.

2047 Referred to Committee on HIGHER EDUCATION AND EMPLOYMENT ADVANCEMENT Introduced by:

(HED) AN ACT EXPANDING THE TAX CREDIT FOR QUALIFIED APPRENTICESHIP TRAINING PROGRAMS AND ESTABLISHING A PILOT PROGRAM FOR CHILDREN INTERESTED IN TRADES.

(a) (1) There shall be allowed a credit for any taxpayer against the tax imposed under this chapter or chapter 228z, for any income or taxable year with respect to each apprenticeship in the manufacturing trades commenced by such taxpayer in such year under a qualified apprenticeship training program [as described in subsection (d) of this section,] certified in accordance with regulations adopted in accordance with the provisions of chapter 54 by the Labor Commissioner and registered with the Labor Department under section 31-22r, in an amount equal to six dollars per hour multiplied by the total number of hours worked during the income or taxable year by apprentices, [in the first half of a two-year term of apprenticeship and the first three- quarters of a four-year term of apprenticeship,] provided the amount of credit allowed for any income or taxable year with respect to each such apprenticeship may not exceed seven thousand five hundred dollars or fifty per cent of actual wages paid in such year to an apprentice, [in the LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2024SB-00302-R01 of 4 SB.docx Substitute Bill No.

3022047 1 of 5 Raised Bill No.302 first half of a two-year term of apprenticeship and the first three- quarters of a four-year term of apprenticeship,] provided the amount of credit allowed for any income or taxable year with respect to each such apprenticeship may not exceed seven thousand five hundred dollars or fifty per cent of actual wages paid in such year to an apprentice, [in the first half of a two-year term of apprenticeship or in the first three- quarters of a four-year term of apprenticeship,] whichever is less.

(b) There shall be allowed a credit for any taxpayer against the tax imposed under this chapter for any income year with respect to each apprenticeship in plastics and plastics-related trades commenced by such taxpayer in such year under a qualified apprenticeship training program [as described in subsection (d) of this section,] certified in accordance with regulations adopted in accordance with the provisions of chapter 54 by the Labor Commissioner and registered with the Labor Department under section 31-22r, which apprenticeship exceeds the averagenumberofsuchapprenticeshipsbegunbysuchtaxpayerduring the five income years immediately preceding the income year with respect to which such credit is allowed, in an amount equal to four LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2024SB-003022 of 4 R01-SB.docx } Substitute Bill No.

3022047 2 of 5 Raised Bill No.302 of chapter 54 by the Labor Commissioner and registered with the Labor Department under section 31-22r, which apprenticeship exceeds the averagenumberofsuchapprenticeshipsbegunbysuchtaxpayerduring the five income years immediately preceding the income year with respect to which such credit is allowed, in an amount equal to four dollars per hour multiplied by the total number of hours worked during the income year by apprentices, [in the first half of a two-year term of apprenticeship and the first three-quarters of a four-year term of apprenticeship,] provided the amount of credit allowed for any income year with respect to each such apprenticeship may not exceed four thousand eight hundred dollars or fifty per cent of actual wages paid in such income year to an apprentice, [in the first half of a two-year term of apprenticeship or in the first three-quarters of a four-year term of apprenticeship,] whichever is less.

The tax credit shall be(A) in an amount equal to two dollarsper hour multiplied by the total number of hours completed by each apprentice toward completion of such program, and (B) awarded upon completion and notification of completion of such program in the income year in which such completion and notification occur, provided the amount of credit allowed for such income year with respect to each such apprentice may not exceed four thousand dollars or fifty per cent of actual wages paid [over the first four income years for] during the course of such apprenticeship,LCO whicheverNo. is less.

(d)2047 [For3 purposes of this5 section,Raised aBill qualifiedNo.302 apprenticeshipapprenticeship, trainingwhichever programis shallless. require at least four thousand but not more than eight thousand hours of apprenticeship training for certification of such LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2024SB-00303 of 4 R01-SB.docx } Substitute Bill No.

302(d) [For purposes of this section, a qualified apprenticeship training program shall require at least four thousand but not more than eight thousand hours of apprenticeship training for certification of such apprenticeshipby theLabor Department.]The amount ofcredit allowed any taxpayer under this section for any income or taxable year may not exceed the amount of tax due from such taxpayer under this chapter or chapter 228z with respect to such income or taxable year.

(Effective from passage) The Labor Department and the Department of Education shall jointly establish a pilot program to operate a summer programprogramduring duringthemonths theofJune months of June to August ofof2024 2024 for students in middlegrades schoolfour to six, inclusive, to learn about work in various trades.

Such program shall align with a career pathway program established pursuant to section 10-20a of the general statutes and include, but need not be limited to, partnering each student with a person licensed in a trade in which such student expresses an interest.

Not later than January 1, 2025, thesaid departmentdepartments shall jointly submit a report, in accordance with the provisions of section 11-4a of the general statutes, to the joint standing committees of the General Assembly having cognizance of matters relating to higher education and employment advancement and education on the results of such program, which shall include, but need not be limited to, (1) the number of students who participated in the program, (2) the feedback received from such students, their families and the persons representing the various trades, and (3) any recommendations for expansion of such program.

Section 1 January 1, 2025, and 12-217g applicable to income and taxable years commencing on or after January 1, 2025 Sec.LCO No.

22047 from4 passageof New5 sectionRaised HEDBill JointNo. Favorable Subst.

C/R302 FINSec. LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2024SB-00302-4 of 4 R01-SB.docx }

2 from passage New section Statement of Purpose:

To (1) expand the tax credit for qualified apprenticeship training programs to all such programs (A) in industries beyond manufacturing, construction and plastics-related trades, and (B) regardless of the number of hours required for completion, and (2) establish a pilot program during the summer to introduce students in grades four to six, inclusive, to various trades.

[Proposed deletions are enclosed in brackets.

Proposed additions are indicated by underline, except underlined.]e entire text of a bill or resolution or a section of a bill or resolution is new, it is not LCO No.

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