Provides corporation business tax and gross income tax credits for businesses that employ apprentices in DOL registered apprenticeships.
If enacted, S2169 aims to significantly impact New Jersey's labor market by stimulating apprenticeship programs across various industries, including construction, healthcare, and energy. By offering financial incentives, the bill encourages businesses to invest in training the workforce. Additionally, the bill allows enhanced credits of up to $5,000 for apprentices who are veterans, displaced workers, or from underrepresented groups, thereby supporting inclusivity in the workforce.
Bill S2169 introduces a tax credit for businesses that employ apprentices registered with the U.S. Department of Labor. The bill is designed to encourage businesses to hire apprentices by providing a $1,000 tax credit for each apprentice employed for at least seven months within a taxable year, thus incentivizing the growth of skilled labor in the state. This initiative is targeted at fostering economic growth and enhancing the local workforce by filling key roles with trained individuals.
There are concerns surrounding this bill regarding the adequacy of protections for currently employed workers. Provisions within S2169 explicitly state that apprenticeship programs should not replace or displace existing workers. Critics worry that without rigorous oversight, the tax incentives could lead to abuse of the system, potentially diluting the quality of existing jobs. Discussions in legislative meetings have expressed a need for balance between economic incentives and safeguarding existing labor conditions.