Skilled Workforce Enhancement Act, August 1999
The issue
With the shortage of workers in the service industries expected to last for years,
should the government give a tax credit to small business owners who provide apprenticeship
training in "highly skilled trades"?
Why it's important
Small businesses like roofing contractors must spend higher amounts to find pools
of workers and recruit them, and then pay additional costs associated with apprenticeship
training. This has become so difficult that contractors at times must turn down
work for lack of trained employees. In response, NRCA is searching to find workers
by reaching out to unskilled individuals who need an opportunity.
NRCA is in the preliminary stages of negotiating a partnership with Goodwill Industries,
and working with the juvenile justice system in Broward County, Florida to find
workers. NRCA has also launched a pre-apprenticeship training program, for first
generation Hispanics, in conjunction with the local community colleges in McAllen,
Texas.
To provide further relief from the crisis, Representative Jim Talent (R-MO), Chairman
of the House Small Business Committee, and Senator Mike DeWine (R-OH) have introduced
the Skilled Workforce Enhancement Act (H.R. 1824/S.1291). This bill would allow
a small business employer who trains employees in a highly skilled trade industry,
such as roofing, to get a tax credit of $15,000 per employee per year for up to
four years. To receive this credit the employer must provide 2,000 hours of training
per trainee annually in a 2-4 year program that is recognized by a national industry
organization or a government agency with expertise in the field. The bill defines
a small business owner as one that employs 250 or fewer people per year.
NRCA's position
NRCA supports the Skilled Workforce Enhancement Act, H.R. 1824/S. 1291, to help
remedy the acute shortage of skilled workers in the roofing industry. Under Section
162 of the Internal Revenue Code, a business, whether union or open-shop, may already
deduct certain training expenses and there are no stipulations that training must
be certified by the Bureau of Apprenticeship Training (BAT). SWEA's tax credit would
be more beneficial to roofing contractors than IRC Section 162.
The other side
The AFL-CIO's Building and Construction Trades Department is opposed to SWEA claiming,
"Our apprenticeship programs…train thousands of workers each year without relying
on Uncle Sam for the associated costs." Also, some union-oriented construction trade
associations argue that any training program eligible for the tax credit under SWEA
must be certified by BAT.
Cosponsors
The House bill has 39 cosponsors:
- Steve LaTourette (R-OH)
- Ron Paul (R-TX)
- Phil English (R-PA)
- Frank Wolf (R-VA)
- Nancy Johnson (R-CT)
- Ron Klink (D-PA)
- Vern Ehlers (R-MI)
- Albert Wynn (D-MD)
- Jo Ann Emerson (R-MO)
- John Murtha (D-PA)
- John Peterson (R-PA)
- Frank Mascara (D-PA)
- Tony Hall (D-OH)
- Dennis Moore (D-KS)
- Don Manzullo (R-IL)
- Jim Kolbe (R-AZ)
- Sue Myrick (R-NC)
- Dick Armey (R-TX)
- Roy Blunt (R-MO)
- Jim Saxton (R-NJ)
- Mike Doyle (D-PA)
- Anne Northup (R-KY)
- Richard Neal (D-MA)
- Virgil Goode (D-VA)
- Dennis Kucinich (D-OH)
- Ed Pastor (D-AZ)
- Rick Hill (R-MT)
- Larry Combest (R-TX)
- Ron Lewis (R-KY)
- James Barcia (D-MI)
- Joe Pitts (R-PA)
- John Sweeney (R-NY)
- Deborah Pryce (R-OH)
- Marcy Kaptur (D-OH)
- Tom Latham (R-IA)
- Henry Hyde (R-IL)
- Fred Upton (R-MI)
- Bill Goodling (R-PA)
- Chris Shays (R-CT)
NRCA's government relations department is conducting a training survey to help with
passage of the Skilled Workforce Enhancement Act. The survey is attached below as
a PDF file. Please download and fax the completed survey to (202) 546-9289 or mail
to NRCA Washington Office, 324 4th Street, NE, Washington, D.C., 20002.
Download the training survey PDF file.
(August 1999)