Contact your House Representative to let them know you support
the Employer Tax Credit provision in HB 1008!
Tax Credit Fact Sheet
• The $1 billion per year workforce system is difficult for employers to navigate as it includes a system encompassing more than 30 programs among 9 different state agencies.
• Employers have minimal opportunities to use these funds, both for needed incumbent worker training, as well as training for new employees.
• Where does an employer go to interface with such a system?
• Without a wholesale change in our workforce, the manufacturing industry does not expect to be able to fill 60% of open positions each year over the next decade – this will devastate our economy, of which manufacturing represents 30%.
• The state should implement an employer training tax credit where employers receive credit for training expenses associated with partnering with Indiana public higher education institutions, high schools, career centers, or other state training providers.
Why Indiana Employers are Asking for a Training Tax Credit
1) A Tax Credit and Not a Grant is Better for Employers
• A tax credit structure provides the most opportunity for businesses, both large and small to participate, as small employers do not have the resources to apply for grants.
• Tax credits will be awarded at the time the outcome (credential awarded/job placement/wage increase) is reported – this will be an outcome-based, not an output-based structure.
• This is a business-driven solution to the state’s workforce issue.
2) Job Retention is Economic Development
• Currently, the state tracks economic development through headcount and capital investment. Instead, the state should measure job placement and wage increases.
• Indiana is not competitive with other states that make workforce a priority.
• The state should be seen as a stakeholder, creating an environment that will allow businesses the opportunities and incentives to grow and develop their workforce locally.
• This would be another economic development tool for the Indiana Economic Development Corporation.
3) Indiana Needs a Truly Employer-Driven System – Driven by Employers, Not Government
• Government targeting of workforce needs has never been accurate. Those making the business decisions in Indiana are best suited to make that determination.
• Employers have the highest stake in training their workforce – their future depends on it.
4) How the Credit Works – Employers Can Receive a Credit For:
• Direct tuition assistance to employees/potential employees.
• Financial assistance for intern and apprenticeship costs.
• Providing instructional support to state training providers.
• Assisting state training providers in crafting curriculum that is valued by the employer.
• Providing transportation assistance to training facilities and industry facilities for internship/apprenticeship opportunities.
• Providing facilities, equipment, and other support to state training providers.
What the Employer-Driven Training Tax Credit DOESN’T Do
• This is NOT a tax incentive for internal training – employers must partner with state-approved education providers to receive the credit. This tax credit would be used to provide portable workforce credentials to individuals, providing mobility and opportunity to Indiana workers.
• This is NOT a request for more state workforce funding. This tax credit can go into effect without any additional fiscal outlays – it should be offset with a corresponding cut to ineffective state grant and assistance programs. This would mean no additional dollars would be spent over the $1 billion that are already spent today.
For more information, contact Stephanie Wells of the IMA at email@example.com or 317-506-7921.
2017 Legislative Priorities
Employer training tax credits to incentivize employer-driven workforce training programs in cooperation with Indiana’s approved training providers
Changes to career and technical education funding, so that schools are incented to provide manufacturing courses
Dedicated funding for trained career counselors in Indiana high schools
Changes to school accountability system, so that schools are encouraged to provide career and technical education that aligns with market demand
Address any Combined Reporting/Transfer Pricing Issues
Support reductions in Business Personal Property Tax - repeal 30% depreciation floor
Lowering floor from 30% to 20% was, in 2013, a $253M tax cut and a $166M loss to local units
Options: Phase in reduction, offset some of the loss on the floor with increase in the first few years of the properties’ useable life
Energy & Environment
Veto Override of Pence “No More Stringent Light”
Potential rulemaking in new administration
Monitor legislation offered to promote self-generation and rate making reforms