House Bill 6754 (sHB6754 File No. 313) aims to promote the employment of individuals with intellectual disabilities by offering a tax credit to employers who hire qualifying employees. The bill defines a qualifying employee as one with an intellectual disability, hired during the income year, and still employed at the end of that year. The tax credit is 30% of annual wages for employees working 25 hours or more per week (up to $5,000) and 15% for those working between 8 and 25 hours per week (up to $2,500). The credit is not available for certain employees, such as owners or partners, and cannot be combined with other state tax credits for the same employee. The credit can be claimed against corporation business tax or income tax, with provisions for S corporations, partnerships, and single-member LLCs.

Additionally, the bill requires the Commissioner of Economic and Community Development to establish a workforce development grant program for nonprofit organizations that employ at least 10% of individuals with intellectual disabilities. Grants are available for infrastructure, start-up, or expansion costs, with a maximum of $25,000 for organizations with 10-30% of such employees and $75,000 for those with more than 30%. The bill also includes a price preference for businesses that employ a workforce with at least 10% of individuals with intellectual disabilities in state agency contracts. The Commerce Committee has approved the bill with a unanimous vote, and it includes fiscal impacts such as a General Fund revenue loss and costs for state agencies and the Department of Economic and Community Development to administer the program. The effective dates are October 1, 2023, for most sections, and January 1, 2024, for the tax credit program.