Sponsors (2)
Creates a new "apprenticeship infrastructure" employer tax credit for hiring and enrolling new apprentices in qualified registered apprenticeship programs. Most new apprentices generate a $3,000 credit for the employer; certain priority hires (recently separated veterans, National Guard/reserve members, or military spouses) generate a $6,000 credit. The provision sets rules for which occupations qualify, how long the credit can be claimed, certification and reporting requirements for employers, limits and monitoring of the credit, and an effective date for the change.
Adds a new Internal Revenue Code section 45BB titled “Apprenticeship infrastructure tax credit for employers,” providing a tax credit for employers calculated as the sum of applicable credit amounts for each apprenticeship employee during the apprenticeship credit period.
Applicable credit amount: employers receive $3,000 for each apprenticeship employee, except $6,000 for an apprenticeship employee who is a recently separated veteran, a member of the National Guard or reserve component, or a military spouse.
Defines the apprenticeship credit period as (A) the taxable year when the employee first enrolls in the employer’s qualified registered apprenticeship program and (B) the succeeding taxable year if the program is a time‑based, hybrid, or competency‑based program that requires 3,000 or more on‑the‑job learning hours. Carryforward year rules may extend the period in some cases.
Defines “apprenticeship employee” as a new hire (begins work no more than 90 days before enrollment) employed by an apprenticeship employer and enrolled under a written agreement in a qualified registered apprenticeship program for an infrastructure‑related occupation.
Defines “infrastructure‑related occupation” as occupations identified by the Secretary of Labor; initial list for taxable years beginning in 2026 includes ONET groups 47‑0000 (Construction and Extraction), 49‑0000 (Installation, Maintenance, Repair), 51‑0000 (Production), and 15‑1200 (Computer, IT, Security). Occupations will be identified/updated annually using ONET descriptors.
Who is affected and how:
Employers: Directly benefit by receiving a tax credit that lowers the net cost of hiring and training new apprentices. Employers must comply with certification and reporting rules to claim the credit, which creates some administrative work.
Apprentices and jobseekers: Increase in demand for apprenticeship slots and potential new hires, improving access to paid training pathways. Priority military-related hires (recently separated veterans, Guard/reserve members, military spouses) have stronger incentives for employers to hire them.
Registered apprenticeship programs: May see higher enrollment and stronger employer participation, expanding capacity and program growth in qualified occupations.
Federal tax administration (IRS/Treasury): Must implement rules, process claims, verify certifications and reports, monitor caps, and oversee compliance — requiring administrative resources.
Federal budget/treasury: Reduced tax revenue to support the credits; the overall fiscal impact depends on the number of claims and any caps or limits in the law.
Workforce and communities: Potential positive local economic effects from more trained workers and improved job pathways, especially for veterans and military families.
Overall effect: Incentivizes employer investment in apprenticeships and targets military-connected jobseekers, while adding certification/reporting duties for employers and administrative burden for tax authorities; the cost to the Treasury depends on utilization and statutory caps.
Referred to the House Committee on Ways and Means.
Last progress June 10, 2025 (8 months ago)
Introduced on June 10, 2025 by Jake Ellzey