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OLR Bill Analysis
sHB 6754
AN ACT CONCERNING INCENTIVES TO INCREASE EMPLOYMENT
OF INDIVIDUALS WITH INTELLECTUAL DISABILITY.
SUMMARY
This bill creates various financial incentives for employers to employ
people with intellectual disability. Among other things, it (1) establishes
a workforce development tax credit program for tax years beginning
January 1, 2024, and (2) requires the Department of Economic and
Community Development (DECD) commissione r to create a grant
program for nonprofit organizations that employ a workforce consisting
of at least 10% individuals with intellectual disability. By law, an
intellectual disability is a significant limitation in intellectual
functioning existing concurrently with deficits in adaptive behavior that
originated before age 18.
The state’s procurement law generally requires the administrative
services commissioner to award open market orders or contracts to the
lowest responsible qualified bidder. The bill allows the commissioner,
when making this determination, to give a price preference of up to 10%
when purchasing goods or services from a business that has a workforce
consisting of at least 10% individuals with intellectual disability when it
submits its bid or proposal (§ 2).
EFFECTIVE DATE: October 1, 2023, except the provision establishing
a tax credit program is effective January 1, 2024, and applicable to
income and tax years beginning on or after this date.
§ 1 — WORKFORCE DEVEL OPMENT TAX CREDIT PROGRAM
The bill creates a tax credit applicable to income and tax years
beginning January 1, 2024, for employers who hire employees with
intellectual disability. In addition to having intellectual disability, an 2023HB-06754-R000313-BA.DOCX
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employee who qualifies for the credit must be hired during, and remain
employed at the end of, the income year for which the credit is claimed.
The credit cannot be claimed for an employee who is (1) an owner,
member, or partner in the business or (2) hired to replace an employee
who was laid off or is on strike. An employer who claims this tax credit
may not claim any other state tax credit for the same employee.
Under the bill, the value of the tax credit depends on how much the
qualifying employee works. For an employee hired to work at least 25
hours per week, the credit equals 30% of the employee’s annual wages,
up to a maximum of $5,000 per employee annually. For employees hired
to work at least eight hours but less than 25 hours per week, the credit
equals 15% of the employee’s annual wages, up to a maximum of $2,500
per employee annually. An employer may not claim more credit than
their total amount of income tax.
Employers can claim the credit against the corporation business tax
or income tax (but not employee withholding tax). If the employer is an
S corporation or treated as a partnership for federal income tax
purposes, the employer’s shareholders or partners can claim the credit.
If an employer is a single-member limited liability company that is
disregarded as an entity separate from its owner, the owner may claim
the credit.
§ 3 — WORKFORCE DEVELOPMEN T GRANT PROGRAM
The bill requires the DECD commissioner to establish a workforce
development program that makes grants to nonprofit organizations that
employ a workforce consisting of at least 10% individuals with
intellectual disability. Grants made under this program must be
awarded for infrastructure expenditures, start-up costs, or expansion
costs.
Grants awarded under the bill are capped at (1) $25,000 for
organizations with a workforce consisting of at least 10% but not more
than 30% individuals with intellectual disability and (2) $75,000 for
organizations with a workforce that has more than 30% individuals with
intellectual disability. 2023HB-06754-R000313-BA.DOCX
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The bill requires DECD to create a competitive application award
process and allows the department to enter into an agreement with a
third-party to operate the program.
COMMITTEE ACTION
Commerce Committee
Joint Favorable
Yea 24 Nay 0 (03/14/2023)