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States That Offer Tax Credits to Employers for Hiring Apprentices

This law provides an income tax credit of $1,000 to an employer for each qualified apprentice of an employer and would also cap the cumulative tax credits allowed at $3,000,000 for the first two tax years following the passage of the bill and $5,000,000 for each tax year thereafter. This law also requires the Workforce Development Division of the Department of Commerce to provide an annual report to certain legislative committees regarding the effectiveness of the program.


Employers hiring a youth apprentice shall be given a credit in the amount of $2,000 or 10 percent of the wages earned by the youth apprentice, whichever is less, against the tax imposed by the Arkansas Income Tax act.


Any taxpayer who employs an apprentice enrolled and registered under the terms of a qualified manufacturing program is entitled to a tax credit for each eligible apprentice of up to $4,800.00 maximum or 50% of actual wages, whichever is less, provided such apprenticeships meet state requirements.


Illinois provides a non-refundable credit against Illinois income tax for 100% of the qualified education expenses of a qualifying apprentice. The credit allowed is up to $3,500, per apprentice per tax year, for tuition, book fees, and lab fees at the school or community college in which the apprentice is enrolled. A taxpayer may be eligible for an additional $1,500 credit if the principal place of business is located in an underserved area or if the apprentice resides in an underserved area.

Any business that employs apprentices may receive a tax credit against its business privilege tax liability equal to 50 percent of all eligible costs paid or incurred by a program participant to train an apprentice. Eligible costs include direct wages and benefits of the apprentice, instructor costs, training costs and personal protective equipment costs.

Any program sponsor (employer/contractor) who pays the wages of an apprentice that is registered with the Louisiana Workforce Commission, Apprenticeship Division may receive a tax credit equal to $1/hour worked per calendar year, with a maximum allowable amount for each apprentice of $1,000/year.

Maryland Apprenticeship Tax Credit provides a State income tax credit to Registered Apprenticeship Sponsors or participating employers (Employer) which hire an eligible Registered Apprentice(s). The Employer may qualify for a $1,000 tax credit for each eligible Registered Apprentice.

As of January 1, 2019, Massachusetts has offered a Registered Apprentice Tax Credit (RATC) to promote the expansion of registered apprenticeship into healthcare, technology, and manufacturing sectors. Employers in these sectors may be eligible for up to a $4,800 credit per qualified apprentice.
Specifically, eligible employers that employ registered apprentices may apply for tax credits of up to $4,800 or 50% of wages paid, whichever is less, for each apprentice who meets the RATC program guidelines. Employers are eligible for up to $100,000 in credits each calendar year, and are eligible to apply for RATC once their apprentices have been employed for 180 days in a given calendar year.

The Youth Opportunity Program offers 50 percent tax credits for monetary contributions and wages paid to youth in an approved internship, apprenticeship or employment project, and 30% tax credits for property or equipment contributions used specifically for the project.

HB 308 provides state businesses with a $750 tax credit for every person hired where the worker is offered on-the-job training through the Montana Registered Apprenticeship office. For every veteran hired and given an apprenticeship opportunity, businesses will be provided a $1,500 tax credit. The apprenticeship tax credit will allow veterans to use skills and leadership they learned while serving in the military to industry sectors.

Exempts from taxation all qualified real and personal property of an apprenticeship program. Title 32 Revenue and Taxation, Chapter 361 Property Tax, NRS 361.106

New York
The Empire State Apprenticeship Tax Credit (ESATC) program provides tax incentives to eligible New York State Registered Apprenticeship program sponsors and/or signatory employers for hiring new qualified apprentices after January 1, 2018. This program is available through 2022 and is focused on in-demand, non-construction occupations throughout the state. The ESATC program provides tax credits beginning at $2,000 per qualified apprentice and increases each year the apprentice participates in the apprenticeship program. Enhanced credits are available for employers that hire disadvantaged youth and/or provide apprentices with the support of a mentor. For further information, please see the following link:

Rhode Island
Employers that hire apprentices in certain manufacturing occupations may be eligible for a tax credit of 50 percent of actual wages or $4,800, whichever is less.

South Carolina
Eligible businesses can receive a tax credit of $1,000 for each registered apprentice employed for at least seven months during each year of an apprentice's program, for up to four years of such a program.

Employers may claim a tax credit for providing eligible worker retraining to qualified employees including apprentices that are approved by the Virginia Apprenticeship Council. The credit is 30 percent of all training costs through a community college, or up to $100 annual credit for each employee if incurred at a private school.

West Virginia
Employers may claim a tax credit for hiring apprentices in the construction trades. the credit may not exceed $1000 or 50 percent of the actual wages paid in the tax year for the apprenticeship.

States That Offer Tuition Support for Registered Apprentices

Funds allow community colleges to provide most instruction for apprenticeship programs.

The Adult Education and Work Force Training Grant portion of HB #200 provides funds to Vocational Technical Schools to support tuition for registered apprentices.


Georgia residents who are attending a Georgia public technical college to earn a certificate or diploma are eligible for a HOPE Grant regardless of high school graduation date or grade average. This fund covers approximately 70% of student expenses. Additionally, the State Legislature has established the Hope Career Grant for select high demand occupations. Additional funding is allocated each year to allow for virtually free tuition for students entering these select occupations.

Seventy percent (70%) of its Manpower Development Fund is allocated to the Apprenticeship Training Program at the Guam Community College to be expended exclusively to fund the administrative and instructional costs for the operation of the apprenticeship training programs; advertising and outreach programs for the promotion of the apprenticeship training programs; and direct financial assistance to students enrolled in the apprenticeship program.

The state created a special employment and training fund, IC 22-4-25-1, from the penalties and interest from the Unemployment Insurance system to fund various training programs. Ivy Tech Community College receives funds to train apprentices in joint labor-management apprenticeship programs. Funds are also used to pay instructors for general education towards an Associate’s degree and journey worker upgrade courses.


  • Iowa Apprenticeship Act, commonly referred to as "15B": An annual non-competitive grant program that is available for any Registered Apprenticeship program to apply for $3 million in state funding available; distributed to all who apply based on the number of their apprentices and the training hours involved in the Registered Apprenticeship program.
  • Iowa Registered Apprenticeship Development Fund, commonly referred to as "15C": A competitive grant program available to new Registered Apprenticeship programs that were created within a high-demand occupation field or for Registered Apprenticeship programs that add a high-demand occupation to their existing Registered Apprenticeship program. $1 million in state funding available; grants are available up to $25,000 per occupation applied for. Programs can apply for more than one grant per each high-demand occupation; overall grants to an organization are capped at $50,000 per fiscal year. Programs must have less than 20 overall apprentices.

Maine Revised Statutes Title 26, §3211, 6-A states that the Maine Department of Labor “shall underwrite 50 percent of tuition costs for apprentices in good standing at public educational institutions and provide training cost assistance to sponsor groups in accordance with sponsor  policies.

New York
Funding is available through the State University of New York (SUNY) for sponsors to cover the costs of Related Instruction in community colleges across the state.

North Carolina
The State Board of Community Colleges may provide by general and uniform regulations for waiver of tuition and registration fees for courses provided to students who are participating in a Registered Apprenticeship program that requires the participants to be high school students when entering the program.

The state offers tuition assistance up to $11,600 for two years ($5,800 per year) at the schools, institutions, and entities governed by the Tennessee Board of Regents and the University of Tennessee Board of Trustees, as well as state certified apprenticeship programs. Tuition assistance benefits are available for a two-year period beginning when an employee is separated due to a reduction in force.

The Texas Workforce Commission provides funds to local public educational institutions to support the costs of related classroom instruction in registered apprenticeship training programs. Local education agencies act as fiscal agents for registered apprenticeship training programs.

Washington State
Registered apprentices may be given a 50 percent tuition reduction at community and technical colleges. The State Board for Community and Technical Colleges issues policy on tuition and fee rates annually. (See attached “Apprenticeship Fee Guidance,” from the Washington State Board for Community and Technical Colleges.)

Apprentices pay $120 per credit (36 hours). The 144 hours of related instruction per year requirement costs $480. Apprentices are paid their hourly wage to attend class, and in some cases, tuition is reimbursed by sponsors or joint training funds.
Wisconsin Statutes also see S.106. Subchapter 1 Apprentice Programs, esp. S.106.01(6)
S. 38.001(1m) and (2a) Mission and Purpose - direct reference to training of apprentices
WTCS State Board Policies (WTCSB)

The Wyoming Department of Workforce Service's Workforce Development Training Fund, a state-funded program, has a grant option available for registered apprenticeship programs to reimburse expenses associated with related classroom instruction. Sponsors, related instruction providers, and employers are eligible to apply. Grants funds can be used for tuition/registration, class fees and materials, travel, instructor wages and fringe benefits, fees for licenses or certifications obtained as part of the related instruction, and up to five percent for administration. More information is available