Committee approves income tax credit bill with cap language and blanked appropriation

The Senate Committee on Labor and Technology voted Feb. 13 to pass SB3046 with amendments, including adoption of Attorney General comments, technical edits, blanking the appropriation, and setting committee-report language recommending a $1,000,000 cap.

Amjid Butay, director of the Department of Labor and Industrial Relations, said the department supports the bill's intent and deferred implementation specifics to the Department of Taxation. He noted that despite low unemployment (cited at about 2.2 percent), many employers struggle to fill skilled jobs and that a tax credit could incentivize investment in training.

Deputy Attorney General Lane Kaivi Opulao Oho advised the committee to reconsider a residency requirement in the definitions for qualified apprentices or interns and recommended either removing the residency requirement or justifying it substantively. The committee also directed technical edits and changed the bill's effective date to 01/01/2077 in the draft before it; the appropriation was blanked and a $1,000,000 cap was recommended for the committee report.

The committee adopted the chair's recommendation by voice vote.