The income tax credit for employment of individuals with developmental disabilities or severe mental illness; and to provide an effective date.
Impact
The bill is expected to impact state tax legislation significantly by redefining the criteria and amount for tax credits aimed at supporting the employment of individuals with significant disabilities. By doing so, it encourages businesses to hire from this demographic, potentially increasing the workforce participation rate among disabled individuals. The changes to the tax code could stimulate employment opportunities, helping to foster a more inclusive job market in North Dakota.
Summary
House Bill 1244 aims to amend the North Dakota Century Code to enhance the income tax credit available for employers who hire individuals with developmental disabilities or severe mental illness. The bill proposes to adjust the percentage of the credit, allowing taxpayers to claim 25% against their tax liability for wages paid to qualifying employees, as determined by the state's Department of Health and Human Services. The iimplementation of the bill would begin for taxable years starting after December 31, 2022, creating a financial incentive for businesses to employ individuals facing significant barriers to competitive employment.
Sentiment
Overall, the sentiment surrounding HB 1244 appears to be positive, particularly among advocacy groups and stakeholders focused on disability rights and employment support. Legislators who backed the bill highlighted its potential to further integrate individuals with disabilities into the workforce and reduce economic disparities. However, there may be concerns regarding the implementation efficiency and the ongoing support of the state to manage the program's administrative requirements.
Contention
While the bill received overwhelming support in the voting process, with a vote count of 90-0 in the House, discussions likely revolved around its funding mechanisms and the effectiveness of the proposed tax credit. Some legislators might have raised questions about the sustainability of such tax incentives and whether they adequately address the needs of individuals with developmental disabilities or severe mental illness. Identifying and verifying eligible employees through the state’s vocational rehabilitation division is another point of operational complexity that could be discussed in future policy evaluations.
Mental illness, individuals in need of care for mental illness, establishes consistency in process of commitment of individuals with mental illnesses, Sec. 22-52-10.11 added; Sec. 22-52-1.1, 22-52-10.2, 22-52-91 am'd.