Sponsors (3)
The bill creates a targeted tax credit to encourage employers to hire and train apprentices — with larger incentives for veterans — expanding workforce opportunities but adding administrative requirements, eligibility limits, and a capped budget that can create uncertainty and exclude some common hiring arrangements.
Employers (especially small businesses) receive a direct hiring tax credit per qualified apprentice — $3,000 normally and $6,000 for recently separated veterans, National Guard/reserve members, and military spouses — lowering hiring costs and encouraging recruitment of apprentices and military-connected hires.
Young adults, students, and workers in infrastructure occupations are more likely to gain apprenticeship slots and on-the-job training because employers have stronger financial incentives to hire and train apprentices.
Taxpayers gain greater fiscal transparency and a cap on total program exposure because the law sets a $5 billion aggregate limit and imposes reporting requirements on program take-up.
All employers face uncertainty because the $5 billion cap can be exhausted, after which new hires would no longer qualify for the credit — complicating hiring and planning across the program period.
Employers, particularly small firms, incur additional administrative and compliance costs to obtain certificates, verify W-2 status, and meet Department of Labor reporting updates to claim the credit.
Some common hiring arrangements are excluded — apprentices hired more than 90 days before program enrollment and 1099 contractors are ineligible — leaving certain workers and firms unable to access the benefit.
Based on analysis of 2 sections of legislative text.
Creates a new employer tax credit of $3,000 per apprentice ($6,000 for certain military-connected apprentices) for hiring apprentices in DOL-identified infrastructure occupations, claimable beginning in tax year 2026.
Official title: To amend the Internal Revenue Code of 1986 to allow a credit to employers who hire individuals through an apprenticeship program.
Introduced June 10, 2025 by Jake Ellzey · Last progress June 10, 2025
Creates a new employer tax credit for hiring and enrolling new apprentices in qualified registered apprenticeship programs for infrastructure-related occupations. The credit is $3,000 per eligible apprentice per applicable year, or $6,000 for recently separated veterans, National Guard/reserve members, or military spouses, with rules defining eligible occupations, enrollment timing, and program types. The credit is claimable under existing general business credit mechanics and first applies for tax years beginning in 2026.