Today, Congresswoman Terri A. Sewell announced that she recently introduced H.R. 1324, the Workforce Development Tax Credit Act of 2013. The bill addresses the growing skills gap across the country and prepares our workforce for manufacturing jobs that America's businesses seek to fill. This legislation offers a federal tax credit for businesses that create apprenticeship programs to train individuals to have 21st century manufacturing job skills and provides an additional tax credit to businesses for hiring and retaining the apprentices.
"Today's global economy demands a workforce that has the training and skills necessary to compete in the 21st century, said Rep. Sewell. This legislation is critically important to addressing the need for job readiness. It encourages public-private partnerships with businesses, technical institutions, community colleges and universities and will incentivize businesses to make things in America once again. I firmly believe that this bill will help prepare our workers for middle and high skilled manufacturing jobs, and I look forward to its passage," added Rep. Sewell.
"On behalf of manufacturers across the state of Alabama, I applaud Congresswoman Sewell for introducing this legislation. The tax credits provided will encourage job creation among manufacturers across the nation and in our state." George Clark, President, Manufacture Alabama
Rep. Sewell also re-introduced H.R. 1323, The Small Business Start--Up Savings Account Act. The bill would allow entrepreneurs to contribute up to $10,000 per year into an account, which could be used to purchase equipment or facilities, marketing, training, incorporating the business and accounting. Contributions to the account could accumulate up to $150,000 and be taken out tax-free.
"Small businesses are the primary economic engine in this country, and it is important that we encourage people to save money tax-free so that they can start businesses and realize the American dream," said Rep. Sewell.
Both of Congresswoman Sewell's bills were included in Democratic Whip Steny Hoyer's "Make it in America" plan that includes several bipartisan proposals. The plan focuses on four priorities -- adopting and pursuing a national manufacturing strategy, promoting the export of U.S. goods, encouraging businesses to bring jobs and innovation back to the U.S., and training and securing a 21st century workforce. The full list of "Make It in America" bills is available at DemocraticWhip.gov.
Background on H.R. 1324
Businesses will be provided a 50% graduated tax credit on the first $2,000 in wages in a taxable year for each apprentice. An additional tax credit, a 40% graduated tax credit on the first $6,000 in wages, will be provided to businesses for each person hired at the end of the apprenticeship program. This bill provides on the job training with job-related educational instruction provided through a community college, technical school, 4-year college or high school. It will reduce youth unemployment, improve the transition from school-to-careers, strengthen the dignity that work provides, increase U.S. productivity and achieve positive returns for employers and workers.