Financial Incentives Expand Apprenticeship Programs
For income tax years commencing on or after January 1, 2025, but before January 1, 2035, section 1 of the bill creates a refundable state income tax credit (tax credit) that an employer may claim if the employer employs an apprentice for at least 6 months during an income tax year and either has a registered apprenticeship program or is an employer-partner of a registered apprenticeship program. The amount of the tax credit is up to $6,300 for 6 months of employment plus up to $1,050 for each consecutive additional month of employment, for a maximum of up to $12,600 per apprentice per income tax year. An employer may not claim a credit for:
- More than 10 apprentices per income tax year;
- The same apprentice for more than 24 consecutive months; and
- An apprentice for months when the apprentice did not receive wages from the employer.
To claim a tax credit, an employer must submit an application for the reservation of the tax credit and an application to receive an income tax credit certificate to the state apprenticeship agency (SAA) in the department of labor and employment (department). The SAA shall review the applications for specified criteria to determine whether the employer qualifies for the tax credit and tax credit certificate.
- Plan to develop and register a new registered apprenticeship program; or
- Currently offer a registered apprenticeship program and plan to expand it.
The bill requires the department to collect specified data regarding the scale-up grant program and submit a report to specified committees of the general assembly.
The bill requires the department to collect specified data regarding the qualified apprenticeship intermediary grant program and submit a report to specified committees of the general assembly.
(Note: This summary applies to this bill as introduced.)