Sponsors (3)
The bill lowers employer costs and promotes registered apprenticeships—with special support for veterans—boosting workforce training, but limited funding, administrative requirements, and eligibility rules may restrict who benefits and add compliance burdens.
Small businesses and other employers: receive a tax credit of $3,000 per new registered apprentice (or $6,000 for recently separated veterans, Guard/reserve members, and military spouses), lowering the net cost of hiring and training new workers.
Veterans and military‑connected jobseekers: the bill prioritizes and offers higher credits for recently separated veterans, Guard/reserve members, and military spouses, improving their employment prospects through apprenticeship hire incentives.
Young adults and employers in infrastructure occupations: the incentive to enroll new hires in registered apprenticeship programs expands on‑the‑job training and supports workforce development in targeted occupations.
Small businesses and would‑be apprentice hires: the $5 billion aggregate cap could exhaust available credits, leaving employers who hire later ineligible and reducing the policy's reach.
Employers (especially small firms): must comply with new quarterly Labor-issued certificates and verification rules, creating an administrative burden and additional compliance costs to claim the credit.
Employers and short‑term hires: no credit is available if an apprentice works under 90 days or is involuntarily terminated, which could deter employers from hiring marginal candidates or unfairly penalize firms after layoffs.
Based on analysis of 2 sections of legislative text.
Introduced June 10, 2025 by Jake Ellzey · Last progress June 10, 2025
Creates a new employer tax credit for hiring and enrolling new workers in registered apprenticeship programs for infrastructure-related occupations. Employers can claim $3,000 per apprentice per year during the apprenticeship credit period, or $6,000 for recently separated veterans, National Guard/reserve members, and military spouses; the credit starts for taxable years beginning after Dec 31, 2025 and is limited by a $5 billion aggregate cap. Sets detailed eligibility rules, documentation and reporting requirements tied to Department of Labor apprenticeship records, establishes a quarterly certificate process to allocate credit capacity, requires Treasury and Labor to monitor and publish annual reports, and includes rules for carryforward, verification, prioritization, and reallocation if credits are underused or the cap nears exhaustion.