Sponsor
Nathaniel Moran
Representative · R-TX
Representative · R-TX
The bill expands employer incentives and taxpayer‑subsidized apprenticeships to create more paid training and workforce pipelines for non‑college workers, but it does so at the cost of federal revenue while adding administrative burdens, audit risk, and caps that may limit usefulness for some employers and high‑cost training.
Workers without four‑year degrees gain paid, employer‑based training that leads to industry‑recognized credentials and improved earnings and career paths.
Employers receive a refundable tax credit that can cut quarterly payroll tax costs (up to ~50% of qualified apprentice wages/expenses), improving cash flow and creating stronger incentives to start or expand registered apprenticeship programs.
Industry sectors facing worker shortages (construction, health care, IT, manufacturing, transportation, etc.) gain a more reliable pipeline of trained workers as apprenticeships expand.
All taxpayers bear reduced federal employment tax revenue to fund the refundable credits, which could raise federal costs or pressure funding for other programs.
Employers — especially small businesses — face upfront costs and ongoing administrative burdens to develop and run registered apprenticeship programs, which may deter participation and limit program expansion in some regions.
The new credit and award rules increase audit, compliance, and tax‑risk exposure for employers and recipients (e.g., extended 6‑year assessment window, documentation/allocation rules, and risks that awards will be treated as taxable compensation).
Based on analysis of 4 sections of legislative text.
Creates a refundable employer tax credit equal to 50% of qualified apprentice wages and apprenticeship program expenses with per-apprentice and quarterly caps, and raises certain apprenticeship award limits 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 employer tax credit that pays for half of qualified wages and apprenticeship program expenses for registered apprentices, subject to per-apprentice and per-quarter caps and limited by applicable employer payroll taxes; excess credit is refundable. Also treats certain apprenticeship-related awards as employee achievement awards and raises the dollar limit for qualifying plan awards to $5,000. The credit is available to employers that maintain or contract to follow registered apprenticeship programs and applies to wages while an apprentice participates in the program (but generally not after two years of participation); the bill adds definitions, caps, and refundability rules to the Internal Revenue Code and adjusts employee-award rules to accommodate apprenticeship awards.