Opportunity Now Grants & Tax Credit

On July 1, 2024, the bill requires a one-time $3.8 million transfer from the general fund to the regional talent development initiative grant program fund to address workforce shortages in infrastructure and building trades. Of this amount, not more than 7% may be used for the administrative costs incurred to administer the regional talent development initiative grant program.

The regional talent summit grant program (grant program) is created and is to be administered by the governor's office of economic development and international trade (office). The grant program, through a selection committee, will award grants to and contract with a program facilitator to develop regional summits across the state. The program facilitator will understand workforce development needs in identified regions of the state, generate a landscape analysis for each identified region that includes job projections and an overview of educational pathways, gather insight from employers about critical workforce and training needs, create regional goals for addressing talent needs, and develop comprehensive tactical plans. Beginning January 1, 2026, any modified or new local workforce development plan must incorporate the tactical plans. The program facilitator must complete all regional talent summits on or before July 1, 2025, and submit workforce plans as a result of the regional talent summits by December 1, 2025.

The grant program, through a selection committee, will also award grants to one or more regional hosts to secure facilities to host regional talent summits, determine community partners to attend the summits, and gather insight from regional employers about critical workforce and training needs.

The regional talent summit development initiative grant program fund (fund) is created in the state treasury. On July 1, 2024, the state treasurer shall transfer $200,000 from the general fund to the fund. The money in the fund is continuously appropriated to the office.

The bill establishes a state income tax credit (tax credit) for the costs of facility improvement and equipment acquisition associated with training programs designed to alleviate workforce shortages beginning January 1, 2026. A qualified taxpayer in a qualified industry may earn a tax credit equal to up to 50% of the costs incurred by the qualified taxpayer to improve its facilities and acquire equipment. The tax credit is refundable and may not be carried forward.

To claim the tax credit, a qualified taxpayer must first reserve the tax credit by applying to be in the evaluation pool established by the office. A selection committee will consider the merits of each application to determine which taxpayers are qualified to reserve the tax credit. If a taxpayer is qualified and approved, the taxpayer is required to incur facility improvements and equipment acquisition costs to claim the tax credit. If the applicant submits evidence that the costs were incurred during the income tax year for which the applicant applied, and those costs are certified by a certified public accountant, the applicant may be awarded a tax credit. The aggregate amount of tax credits reserved in one calendar year cannot exceed $15 million.

The executive director of the department of revenue may require a person or organization not subject to tax or a person or organization exempt from taxes to make and file a return containing information prescribed by the executive director to claim the tax credit.

(Note: This summary applies to this bill as introduced.)