“To amend the Internal Revenue Code of 1986 to allow a credit to employers who hire individuals through an apprenticeship program.”
No CRS summary available for this bill.
This section establishes a new general business tax credit under new IRC §45BB for employers equal to $3,000 per apprenticeship employee ($6,000 in the case of a recently separated veteran, member of a reserve component of the Armed Forces as defined in 10 U.S.C. §10101 (i.e., Army National Guard, Army Reserve, Navy Reserve, Marine Corps Reserve, Air National Guard, Air Force Reserve, or Coast Guard Reserve), or military spouse) enrolled in a qualified registered apprenticeship program for an infrastructure-related occupation during the apprenticeship credit period. The apprenticeship credit period is the taxable year of the employee's enrollment in the employer's program plus the succeeding taxable year if the program is time-based/hybrid or competency-based and requires 3,000 or more on-the-job learning hours (with a potential additional carryforward year). An apprenticeship employee is a new hire (i.e., beginning employment no more than 90 days before enrollment) who is not a 1099 contractor; infrastructure-related occupations initially include specified ONET major groups (e.g., 47-0000 Construction and Extraction) for taxable years beginning in 2026, with annual updates; and the employer must have an agreement with the program but cannot be tax-exempt, the sponsor, or related to the sponsor. (Qualified registered apprenticeship programs are those registered under the National Apprenticeship Act that meet specified Department of Labor standards.)