Rep. Maffei Introduces Job and Opportunity Bonus (JOB) Tax Credit Act
Tuesday, March 11, 2014
U.S. Representative Dan Maffei (D-Syracuse) today introduced the Job and Opportunity Bonus (JOB) Tax Credit Act, which will help address the immediate need of employers in Central New York who are facing the “skills gap,” the gap between the labor force available for hire and the labor force they need. This bill, which was a recommendation included in Rep. Maffei’s jobs plan and education plan, creates a temporary tax credit for employers to use to help pay for the cost of training their employees.
“Employers across Central New York have told me time and again that it is difficult to find workers with the training necessary to perform the highly-skilled jobs available,” said Rep. Maffei. “So many of our local businesses want to invest in training for current and new employees, but don’t have the resources to do it. My bill helps address this issue by providing a tax credit for worker training programs. The JOB Tax Credit Act is a win-win for employers and workers and will grow our local economy by helping businesses train and keep highly-skilled workers in Central New York and giving workers the tools they need to compete in today’s job market.”
According to an analysis by the International Monetary Fund, the skills gap contributes to about one-third of the national unemployment rate and by 2020 more than 60 percent of job openings will require at least some additional training. According to another report from the Organization for Economic Cooperation and Development, the skill level of the American workforce is falling behind our foreign competitors.
Specifically, the JOB Tax Credit Act:
- pays for 50 percent of the cost of training employees in an approved program, up to $5,000 per employee;
- can be claimed by employers with 500 or fewer employees;
- begins in 2015 and expires at the end of 2017; and
- is allowed to be used for a range of different training programs, including:
- apprenticeship programs,
- trainings offered by vocational or technical schools and community colleges,
- trainings offered by industrial or trade training organizations and labor unions, and
- industry-sponsored training programs.
“The skills gap is a serious problem facing the Bio/Med industry across New York,” said Jessica Crawford, President of MedTech, a New York State association of pharmaceutical, biotech, and medical technology companies, their suppliers and service providers, and research universities. “In order for local Bio/Med businesses to grow, innovate, and be competitive nationally and worldwide, we must provide workers with the training necessary to ensure they can keep pace with the industry’s demands. Rep. Maffei’s bill will provide Central New York’s Bio/Med industry with the boost it needs to keep the best and brightest workers in our region by creating incentives that reward businesses for providing training to their employees.”