Section 38NN: Nonrefundable credits for trainings; eligibility; credit amount
[ Text of section added by 2024, 88, Sec. 7 effective April 30, 2024 for tax years beginning on or after January 1, 2024. See 2024, 88, Sec. 29. Repealed by 2024, 88, Sec. 8, applicable as provided by 2024, 88, Sec. 30.]
Section 38NN. (a) As used in this subsection, the following words shall, unless the context clearly requires otherwise, have the following meanings:
‘‘Authorized training program’’, a program approved by the secretary of administration and finance and the secretary of labor and workforce development that is offered by an employer to train qualified trainees: provided, that said program shall assist qualified trainees in developing skills and accessing resources to prepare qualified trainees to enter the workforce; and provided further, that no authorized training program shall provide compensation to a qualified trainee without work authorization and said program shall ensure the qualified trainee has no expectation of compensation for training.
‘‘Qualified trainee’’, an individual receiving benefits through the emergency housing assistance program pursuant to section 30 of chapter 23B and 760 CMR 67.00 or an individual in an overflow emergency shelter site established in response to the capacity limitation on said program pursuant to a declaration issued by the secretary of housing and livable communities dated October 31, 2023, the extension of the declaration dated February 28, 2024 and any subsequent extensions, issued pursuant to 760 CMR 67.10, as inserted by emergency regulations issued by the executive office of housing and livable communities on October 31, 2023, and accompanying guidance issued pursuant to said declaration and 760 CMR 67.10, who; (i) (A) has not received work authorization; or (B) is currently unemployed; and (ii) is participating in an authorized training program.
‘‘Training’’, teaching, developing or enhancing skills and knowledge to improve capacity, productivity and performance to enter the workforce, including, but not limited to, classes, clinics or other hands-on methods.
‘‘Work authorization’’, federal authorization to work in the United States pursuant to 8 CFR 274a.
(b) A business corporation may be allowed a nonrefundable credit equal to $2,500 for each qualified trainee who receives training through an authorized training program by said business corporation in a taxable year. If the credit allowed for a taxable year exceeds the taxpayer’s liability for that taxable year, the taxpayer may carry forward and apply the credit in the subsequent taxable year.
(c) To be eligible for the credit pursuant to subsection (b), the business corporation shall; (i) have a place of business in the commonwealth; (ii) conduct the authorized training program in the commonwealth and in compliance with recommendations of the secretary of labor and workforce development pursuant to subsection (e); and (iii) meet any additional requirements determined by the secretary of administration and finance and the secretary of labor and workforce development.
(d) The total amount of credits that may be authorized in a taxable year pursuant to subsection (dd) of section 6 of chapter 62 and this section shall not exceed $10,000,000.
(e) The secretary of labor and workforce development shall:
(i) identify industries with the greatest workforce needs in geographically diverse areas of the commonwealth in which qualified trainees may be employed after receiving work authorization; provided, that the secretary of labor and workforce development shall identify industries with varying work experience, education, certification and licensure requirements for training;
(ii) provide recommendations for training criteria to enable qualified trainees to be successful in the workforce; provided, that the secretary of labor and workforce development shall provide specific industry recommendations for training; and provided further, that the secretary may identify existing training programs that meet said training criteria; and
(iii) perform outreach to industries identified as having the greatest workforce needs to provide notice of the tax credit program established pursuant to this section.