Summary of the Act

This act would establish a new tax credit for employers who hire apprentices in the United States.

Key Provisions of the Act

• Establishment of the Apprenticeship Tax Credit: The act would create a new tax credit for employers who hire apprentices, which would be known as the “Apprenticeship Tax Credit” or “ATC”.
• Eligibility Requirements: To be eligible for the ATC, employers must meet certain requirements, including:
  • Hiring at least one apprentice in a qualified apprenticeship program
  • Paying a minimum wage rate to all employees, including apprentices
• Amount of the Tax Credit: The amount of the tax credit would be based on the number of apprentices hired and the percentage of their wages that are paid under the ATC.

Reporting Requirements

The act would also require employers to report certain information related to the ATC, including:

• Number of Apprentices Hired and Wages Paid: Employers must report the number of apprentices hired and the total amount of wages paid under the ATC.
• Occupations Targeted by the Tax Credit: Employers must also report the occupations targeted by the tax credit, including the National Center for Construction Education and Research (NCCER) and other qualified programs.

Effective Date of the Act

The act would take effect on January 1, 2027.