Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Apprenticeship Workforce topic
No spam. Unsubscribe anytime.
Committee advances bill expanding apprentice tax credit for construction industry amid calls for workforce growth
Summary
House Bill 908 would expand an existing employer tax credit to include construction apprentices; the House Business and Labor Committee advanced the measure after proponents from contractors and industry groups described apprenticeship growth and the credit's role in scaling training capacity.
Representative Curtis Schomer, sponsor: "House bill 9 0 8 does exactly that" (intro)
The House Business and Labor Committee on Wednesday advanced House Bill 908, which would expand an existing tax credit to include specified construction apprentices and related sponsor employers. Proponents said the change would help firms reinvest in employer‑run apprenticeship programs, grow the pipeline of skilled trade workers and increase retention among apprentices.
Why it matters: Contractors and the Montana Chamber of Commerce said the tax credit would multiply the state's investment in apprenticeship by lowering employer costs for related instruction and on‑the‑job training. The Department of Labor and Industry testified the program would be capped within the bill at $750 per qualifying apprentice (or $1,500 for a qualifying veteran apprentice) and that the change initially would reach a smaller subset of Montana apprentices concentrated in construction.
Proponent testimony: Bill Ryan, education coordinator for a major construction firm, told the committee his company now sponsors more than 60 apprentices after expanding an internal program and that each apprentice costs about $5,000 per year in related instruction. Kerry Hegreberg of the Montana Contractors Association and Sheridan Hoyer of the Montana Chamber described workforce shortages and said the credit would encourage employer investment in training.
Agency analysis and fiscal note: Commissioner Sarah Swanson, Department of Labor and Industry, said the department administers registered apprenticeship and the current tax credit. The agency estimated, based on current apprentices who would meet the bill's criteria, a modest fiscal impact in a pilot year—roughly $50,250 if 67 apprentices qualified at $750 each; if all were veterans the cost estimate would rise near $78,000. Commissioner Swanson said the estimate assumed the bill applied only to construction apprentices; expanding it beyond construction would multiply eligible apprentices and increase fiscal impact.
Sunset and amendments: The sponsor offered and the committee adopted a friendly amendment removing a sunset so the credit would not automatically expire; the amendment also clarified interactions with other credits. The committee voted to advance the bill to the floor.
Formal action: Committee motion to advance HB 908 carried in executive action (do pass once amended). Tally: committee recorded aye votes and advanced the bill to the House floor. Outcome: approved by committee. The bill includes pilot‑style provisions and a suggested review of sunset timing and funding if the program expands.
Next steps: If the House passes HB 908 the department and employers will coordinate certification of qualifying apprentices and the Department of Revenue will process the tax credits when the statute is enacted. Commissioner Swanson told members the department could administer the certification but noted the proposal was not in the governor's base budget.
Ending: Supporters framed HB 908 as a targeted, employer‑driven tool to scale training in construction trades; agencies warned fiscal impacts could grow if the credit is broadened beyond construction apprentices.
