| 1/28/2013 |
Internship Tax Credit program proposed
McNamara bill aims to grow jobs through school/company partnerships
STATE HOUSE – The Rhode Island Partnership Project was established last September, with support from the RI Office of Higher Education, to begin taking concrete steps to close the skills gap in the state. The executive summary of a recently released report says “the highest priority action RI can take is to increase the number of its residents who complete postsecondary education and earn a bachelor’s degree, associate’s degree or certificate.”
The RIPP lists four significant areas that require immediate action, including an internship system that promotes and coordinates efforts between colleges, universities and workplaces. In conjunction with that system, the panel calls for legislative action to provide tax credits to companies that establish internships and apprenticeships.
Rep. Joseph M. McNamara (D-Dist. 19, Warwick, Cranston), Chairman of the House Committee on Health, Education and Welfare, has answered the call, and has introduced legislation, (2013-H5134), to create the “Rhode Island Internship Tax Credit Act.”
The bill calls on the Department of Labor and Training, in consultation with the Board of Education, to develop a statewide program for certified career-related internship program to be available to resident college-enrolled students. The program would make available tax credits for companies that employ individuals under an internship program.
“Internship can be very helpful to young people, providing a pathway to a career,” said Representative McNamara. “But in a difficult economy such as that in Rhode Island, companies may be hard-pressed to offer paid internships. Encouraging companies, with a tax credit, to make internships available can help strengthen the cooperation between education and business, and introduce students to career opportunities and the culture of the workplace.”
The specific monetary value of the tax credit has not been specified in the bill, Representative McNamara explained, because the amount will need to be determined by the availability of federal, state and private grants to the program. As an example, though, Representative McNamara referred to a program operating in North Dakota, where the tax credit is equal to 10 percent of the compensation paid to the intern, with a cap of five interns per company and a total credit of $3,000.
“Establishing the program is the first important step,” said Representative McNamara. “Once that is done there will need to be a campaign to make companies aware of internship programs and tax credits. But if we don’t move to establish programs like this and opportunities for education and business partnerships of this kind, the state’s skills gap will continue to grow larger.”
The bill has been referred to the House Committee on Finance. Co-sponsors include Rep. Frank G. Ferri (D-Dist. 22, Warwick), Rep. Joy Hearn (D-Dist. 66, Barrington, East Providence), Rep. Jan P. Malik (D-Dist. 67, Barrington, Warren) and Rep. Samuel A. Azzinaro (D-Dist. 37, Westerly).
Under the legislation, tax credits would not be available for company internships that supplant or replace existing positions. They would be available to companies that provide a process that measures progress toward mastery of skills; motivate and education post-secondary students and recent graduates through work-based opportunities; include mechanisms that promote employer involvement with students and offer students a continuum of learning experiences and relationships with employers.
“We need to get students on a more secure path to graduate and to secure a job, and we need to find incentives for new graduates to work and stay in Rhode Island,” said Representative McNamara. “An internship can be a vital step to addressing those issues, and this legislation offers an incentive for companies to do their part to address the existing skills gap.”
For more information, contact:
Randall T. Szyba, Publicist
State House Room 20
Providence, RI 02903
(401) 222-2457 |
LEGISLATIVE INFO
