Sponsors (3)
The bill offers a targeted tax incentive to encourage small businesses to hire and train technical students and apprentices—boosting job opportunities and local workforce development—but its $10,000 cap, nonrefundable structure, administrative complexity, and modest cost to federal revenue limit and complicate who benefits.
Small-business owners receive a tax credit equal to 50% of qualified wages plus workers’ compensation costs (up to a $10,000 annual cap), lowering the cost of hiring and training eligible technical students and apprentices.
Students and apprentices in community college, vocational, or registered apprenticeship programs gain increased employment and on-the-job training opportunities as employers are incentivized to hire and train them.
Provides targeted support to small businesses (per the Small Business Act), potentially strengthening local workforce development and hiring in skilled trades.
The $10,000 annual cap limits the credit’s benefit for employers with multiple eligible trainees, reducing incentives for larger-scale apprenticeship programs and limiting potential hires.
Because the credit is nonrefundable, very small or newly formed businesses with little taxable income may not be able to use the full value, limiting support for startups and fledgling employers.
New tax rules and eligibility verification (definitions, aggregation rules, enrollment/apprenticeship proof) increase administrative and compliance burdens for employers and the IRS.
Based on analysis of 2 sections of legislative text.
Creates a nonrefundable tax credit for small businesses equal to 50% of qualified wages plus apportioned workers’ compensation premiums for eligible apprentices/young workers, capped at $10,000/year.
Creates a new nonrefundable tax credit for qualifying small businesses equal to 50% of qualified wages plus apportioned workers’ compensation premiums for eligible employees, subject to a $10,000 annual cap per taxpayer and aggregation rules for related employers. The credit applies to employees who are under age 21 at year-end or who are enrolled in registered apprenticeships or certain community college/career or vocational programs, and is effective for taxable years beginning after December 31, 2025.
Introduced August 12, 2025 by Josh Harder · Last progress August 12, 2025