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Proposed Bill Gives Tax Credits For Raising Minimum Wage

By Angelo Bautista

Posted January 5, 2018

An Indiana Senate Republican wants to give businesses tax credits for giving raises to minimum-wage workers.

Sen. John Ruckelshaus (R-Indianapolis) introduced a bill that provides tax credits to employers who increase pay for minimum-wage workers after they complete a career enhancement program. This could include earning a GED or an industry certification.

Employers are eligible if they have at least one employee who has worked for the employer for at least 12 months and is not a student. Employers will receive 50 percent of the wage increase. For example, if an employer chooses to increase pay by $3 per hour, they will get $1.50 per hour in tax credits.

Ruckelshaus says the measure gives Indiana businesses incentive to help their employees advance their careers.

"Those Hoosiers at the minimum wage are basically trapped because they lack the skills necessary to move up the economic ladder," Ruckelshaus says.

Indiana had 69,000 hourly workers at or below minimum wage in 2016, according to the Bureau of Labor Statistics. That accounts for 3.6 percent of Indiana's 1.89 million hourly work force.

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