Tax Benefits of Closing the Manufacturing Skills Gap
A lack of skilled workers is a top challenge facing the manufacturing industry today. Executives and owners everywhere agree there is a talent shortage, and that shortage is increasing as baby boomers begin to hit retirement.
What is your company’s strategy to overcome this challenge? Will you…
- Expand internal employee training and development programs?
- Develop relationships with local schools and community colleges to engineer a talent pipeline?
- Create veteran hiring programs?
These are all useful strategies that may have hidden tax benefits for your company. While there are many tax incentives in the manufacturing industry for expanding your research and development, there are also tax credits for expanding your labor pool and employee skillsets. Many states, including Missouri and Illinois, are offering funding through state tax credits to thousands of large and small companies who are creating jobs, retraining to upgrade workforce skills or hiring veterans. The Illinois Veteran’s Tax Credit, Missouri Works Program, and Missouri Works Training are a few of these tax credits that could save your company thousands of dollars for hiring and training employees. Timing of these credits is crucial as some require applications before beginning the hiring or training process.
If you have questions about how these and other credits apply to your business, contact an Anders advisor.