OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
HB-6435
AN ACT EXTENDING THE MANUFACTURING APPRENTICESHIP
TAX CREDIT TO PASS-THROUGH ENTITIES.
Primary Analyst: CW 3/27/21
Contributing Analyst(s): EW
Reviewer: MM
OFA Fiscal Note
State Impact:
Agency Affected Fund-Effect FY 22 $ FY 23 $
Revenue Serv., Dept. GF - Revenue
Loss
Up to 1.4
million
Up to 1.4
million
Revenue Serv., Dept. GF - Cost Less than
100,000
None
Note: GF=General Fund
Municipal Impact: None
Explanation
The bill, which allows pass-through entities to claim manufacturing
apprenticeship tax credits against the personal income tax or pass-
through entity tax, results in a revenue loss of up to $1.4 million
annually beginning in FY 22. This also results in a one-time cost of less
than $100,000 in FY 22 to the Department of Revenue Services
associated with updates to the online Taxpayer Service Center to allow
pass-through entities to claim the credit on their tax forms.
This is based on data indicating there are currently 6,510 registered
apprentices, of which approximately 200 are in manufacturing trades.
The Out Years
The annualized ongoing fiscal impact identified above would
continue into the future subject to fluctuation in the number of
manufacturing apprentices.
Sources: Connecticut Department of Labor 2021HB-06435-R000161-FN.DOCX Page 2 of 2
Connecticut State Apprenticeship Council 2/19/21 meeting minutes