The provision of an income tax credit for qualified compensation paid to an apprentice; and to provide an effective date.
Impact
The introduction of this tax credit is intended to positively impact North Dakota's economy by promoting apprenticeship programs, which can lead to better-trained workers. It provides financial relief to employers who support apprenticeship positions, potentially increasing job opportunities for young workers and those entering new fields. The bill also aims to assist in the growth of specific sectors where skilled labor is essential, thereby fostering economic development through enhanced workforce competencies.
Summary
House Bill 1383 aims to establish an income tax credit for employers who provide compensation to qualified apprentices. Specifically, the bill allows employers a tax credit equal to ten percent of the salary or stipend paid to qualified apprentices, with a cap of three thousand dollars for total credits accumulated over several taxable years. This measure is designed to incentivize businesses to hire apprentices, thereby enhancing the workforce and addressing skill gaps within the state.
Sentiment
The general sentiment surrounding HB 1383 has been overwhelmingly positive, as evidenced by the unanimous votes of 89-0 in the House and 45-0 in the Senate. Supporters argue that this initiative will alleviate financial barriers for businesses and encourage more employers to participate in workforce development through apprenticeships. This sentiment is shared across party lines, highlighting a common goal of enhancing employment opportunities in the state.
Contention
Despite its broad support, there may be underlying concerns regarding the long-term sustainability and administration of the tax credit program. Some critics may raise questions about the potential for misuse or the need for robust oversight to ensure that only legitimate apprenticeship positions are eligible for the tax credit. Furthermore, discussions may revolve around ensuring that the benefits of such tax incentives reach a diverse range of businesses across different sectors, thus preventing a concentration of benefits in just a few industries.
An adoption tax credit and a tax credit for contributions to a maternity home, child-placing agency, or pregnancy help center; and to provide an effective date.