Sponsor
The bill uses refundable tax credits, clearer definitions, and limited tax-favored awards to expand registered apprenticeships and help non-degree workers and employers, but it raises federal costs and adds complexity and compliance burdens that may limit uptake for some small employers and shift costs onto taxpayers.
Employers (especially small businesses) can get a refundable payroll tax credit equal to 50% of qualified apprentice wages and related expenses, sharply lowering the net cost of hiring and training apprentices.
Workers without four-year degrees (unemployed, career changers, students) gain expanded, accessible career pathways to higher earnings and more-stable jobs through growth in registered apprenticeship opportunities.
High-demand industries (construction, health care, IT, transportation, etc.) and the broader economy benefit from reduced workforce shortages and improved competitiveness as apprenticeships expand.
Taxpayers face higher federal outlays because the refundable nature of the credit means cash refunds are paid from the Treasury, which could increase deficits or crowd out other spending priorities.
Small employers and training sponsors may still face large upfront program development, training, supervision, and administrative costs — and per‑apprentice/quarter caps or employer caps may leave some unable to recoup expensive training investments — limiting adoption.
Complex eligibility rules, documentation requirements, anti‑avoidance provisions, payroll reporting guidance, and award-classification rules increase compliance and administrative burdens for employers, payroll providers, and plan administrators.
Based on analysis of 4 sections of legislative text.
Creates a refundable payroll tax credit covering 50% of qualified apprentice wages and certain apprenticeship expenses and adjusts tax treatment and caps for apprenticeship awards.
Senator · R-IN
Creates a new refundable payroll tax credit for employers that hire and train registered apprentices, covering up to 50% of qualified apprentice wages and certain registered apprenticeship program expenses (with per-apprentice and per-quarter caps), and revises employee achievement award rules to allow larger tax-preferred apprenticeship awards. The bill defines eligible employers, qualified apprentices, applicable employment taxes, and expense limits, and makes excess credit refundable against certain employment tax liabilities. The measure aims to lower the cost of employer-provided apprenticeships, encourage participation across industries with workforce shortages, and clarify tax treatment of apprenticeship-related awards. It adds a new IRC provision and makes a targeted amendment to the employee achievement award rules in section 274(j).
Official title: 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 Todd Young · Last progress April 30, 2026