Sponsor
Nathaniel Moran
Representative · R-TX
Representative · R-TX
The bill expands and incentives registered apprenticeships—giving workers paid training and employers refundable tax credits while clarifying tax rules—but does so at a fiscal cost to taxpayers and with added administrative, compliance, and cost‑cap challenges that may limit adoption for some employers.
Workers without four‑year degrees and apprentices gain paid on‑the‑job training, mentor support, and industry‑recognized credentials that expand hiring pathways and long‑term earnings potential.
Employers receive a refundable payroll tax credit (up to 50% of qualified apprentice wages/expenses, subject to caps) that improves cash flow and strongly incentivizes creation and retention of registered apprenticeship programs.
Industry sectors with workforce shortages (e.g., construction, health care, IT, manufacturing, transportation) gain a more reliable pipeline of trained workers, helping address local labor gaps and supporting economic activity in affected regions (including rural communities).
All taxpayers ultimately bear the cost of the refundable credit because it reduces employment tax revenue, which could increase federal outlays or pressure funding for other programs.
Employers—especially small businesses—face upfront costs to develop and run registered apprenticeship programs (curriculum, mentors, administration), which may deter adoption and limit access in cost‑sensitive or rural areas.
New documentation, allocation rules (e.g., for health plan wages), and an extended six‑year assessment/audit window increase administrative burden and audit exposure for employers, raising compliance risk and potential retroactive liabilities.
Based on analysis of 4 sections of legislative text.
Creates a refundable tax credit covering 50% of qualified apprentice wages and apprenticeship program expenses and raises a qualifying apprenticeship award exclusion to $5,000.
Official title: To amend the Internal Revenue Code of 1986 to provide a credit against employer payroll taxes for wages and other expenses paid or incurred for apprenticeship programs.
Introduced April 30, 2026 by Nathaniel Moran · Last progress April 30, 2026
Creates a refundable federal tax credit to encourage employers to hire and train workers in registered apprenticeship programs and raises the tax-free dollar limit for certain apprenticeship-related employee achievement awards. Employers who maintain or join registered apprenticeship programs can claim a refundable credit equal to 50% of qualified apprentice wages and approved apprenticeship program expenses, subject to per-apprentice, per-quarter, and total-quarter caps; any excess credit is refundable. The bill also adjusts employee-achievement award rules to treat specified apprenticeship awards as nontaxable achievement awards and increases a qualifying award limit to $5,000.