Foster Introduces Legislation To Promote Job Training And Growth In Manufacturing
Aurora, IL – Today, Congressman Bill Foster announced legislation he introduced to help small manufacturers provide on-the-job training for new employees. The Small Business Growth in Manufacturing Act, H.R. 4473, would provide a tax credit for small manufacturers who invest in on-the-job training. It would also make the R&D tax credit permanent and increase the alternative simplified credit from 14% to 20%.
Full text of the legislation is available here.
Foster introduced the legislation at ASK Power in Aurora and was joined by ASK Power President Steve Kase, President & CEO of the Aurora Regional Chamber of Commerce Joseph B. Henning, President & CEO of Choose DuPage, Greg Bedalov and President of Innovus, Steven Wilt.
“As a businessman myself, who started a manufacturing company with my brother, I know well the opportunities and challenges associated with manufacturing,” said Foster. “But if we want to maintain our role as a nation of innovators, we must invest in research and training.”
“As small manufacturers create the majority of new jobs, and transformative technologies require more and more investment and training on our shop floors, recognition of the benefit to the economy of more competitive firms, more sophisticated skills, and better wages by the Federal tax code is a very welcome development! Congressman Foster has always recognized the role of training and R&D in better jobs and competitiveness,” said Kase.
The Small Business Growth in Manufacturing Act would create a tax credit for on-the-job training expenses for companies with 500 or fewer employees. The tax credit would be equal to 50 percent of actual training expenses for current employees over a three year period. Training expenses would include the purchase of instructional software or equipment that can be used to simulate job tasks, payments to trainers or instructors who are not employees of the firm, and the costs associated with using classroom space for training.
In addition to establishing this on-the-job training credit, this legislation would make the R&D credit permanent and increase the alternative simplified credit from 14% to 20%.
“Incentivizing greater research and development investments plays an important role in creating higher wage jobs in the United States while ensuring that we remain innovative and competitive abroad,” added Foster. “I’ve introduced the Small Business Growth In Manufacturing Act to support business who invest in workers with on-the-job training and who invest in innovation with research and development.”
The legislation is a part of Foster’s ongoing Project Growth initiative, which aims to support jobs and economic development in the 11th District of Illinois by focusing on four key issues: education, transportation, manufacturing and strengthening the middle class.