How an Apprenticeship Tax Credit Would Benefit Alabama Small Business Owners

Date: March 01, 2016 Last Edit: March 02, 2016

This NFIB priority would address state's workforce problem.

How an Apprenticeship Tax Credit Would Benefit Alabama Small Business Owners

For many business owners, the lack of a trained and skilled workforce is one of the three biggest challenges they face. Senate Bill 90, sponsored by Sen. Arthur Orr, aims to address that problem.

SB 90 would provide an income tax credit for employers who train qualified apprentices for at least seven months in a tax year. The tax credit would be $1,000 per apprentice, and to be eligible, the apprentices would have to be at least 16 years old and would have to enter into a written apprenticeship agreement with their program sponsor. If enacted the total amount of tax credits distributed would be capped at $3 million (3,000 apprentices). The program would sunset after five years if not renewed by the legislature.

Essentially, this would amount to paid, on-the-job training that benefits both workers and employers. Gwyn Brown, who serves on NFIB’s Alabama Leadership Council, says the apprenticeship tax credit is a win-win for business, community colleges and students.

“I believe this bill would help facilitate a better trained workforce, and as a business owner, having an employee coming into your door with real world experience is very helpful,” she says. “As the business sponsoring an apprentice, you are able to expose the student to your training and your methods of doing business and receive a tax credit while you do it. The student is learning firsthand, not just in the classroom. I know I learn better with a hands-on approach.”

NFIB strongly supports SB 90.

Related Content: News | State | Alabama | Economy | Tax Relief | Taxes

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