Committee advances 'Train Act' providing tax credit to employers who loan workers as CTE instructors
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Summary
The Senate appropriations committee gave HB517 a favorable report after adopting two amendments that narrow eligible receipts and add community foundation partnerships; the bill creates an income tax credit to encourage employers to loan qualified employees to serve as CTE instructors.
The committee advanced House Bill 517, the "Train Act," which would create an income tax credit to encourage employers to loan qualified employees to serve as career and technical education (CTE) instructors. Chair opened the bill and a senator carrying the measure said the credit is intended to get manufacturers and other industries involved in training future workers.
The bill sponsor told the committee the legislation "creates an income tax credit to incentivize employers to loan qualified employees to service as CTE, instructors," and described an amendment to expand optional eligibility to local community development foundations partnered with industry. The committee adopted that amendment on a roll call (15 ayes, 0 nays).
A second amendment removed utility excise taxes from the receipts that could be used to calculate the credit, a change the amendment sponsor described as an effort to limit general-fund revenue loss. Committee discussion acknowledged a projected decline to the general fund if the utility receipts were included; the committee adopted the amendment by roll (15 ayes, 0 nays).
After the two amendments were adopted, the committee voted to give HB517 a favorable report to the floor (15 ayes, 0 nays). The measure will be reported out of committee as amended and is scheduled for further action on the chamber calendar.
