Employers could claim capped credits for skilled trades instructors

Qualifying employers may apply for a refundable tax credit for eligible pay and related costs during an instructor's release time. Eligible programs include approved career and technical education programs and registered apprenticeships. Employers must pay a qualified instructor released from regular job duties. The instructor must teach, train, or do related preparation for an eligible construction or manufacturing program. Eligible pay and direct costs must match the instructor's normal compensation, and the employer's release-time policy cannot reduce paid leave. Employers apply by January 15 for eligible expenses from the preceding calendar year. The tax commissioner reviews applications in the order received, with priority for instructors serving dropout prevention and recovery community schools.

The credit is limited by hourly, employer, and statewide caps, and eligible employers must receive a certificate before claiming it. The caps apply to credits for qualified instructors and qualifying employers. The credit for each instructor is the lesser of eligible expenses or $150 per release-time hour. An employer may claim no more than $50,000 per calendar year, and the commissioner may issue no more than $10 million in credits in a calendar year. A qualifying employer or a taxpayer with an ownership share in one may claim its certified amount; any excess over tax due is refunded. The commissioner cannot issue certificates for expenses incurred after December; the year is cut off in the supplied excerpt.