Massachusetts has created a new Apprenticeship Tax Credit program as part of a wide-ranging economic development bill passed this summer. The tax credit makes up to $2.5 million available per year to help employers provide apprenticeships for computer, health care, and manufacturing occupations.
Employers who employ an apprentice in Massachusetts for at least 180 days, register as an apprenticeship program sponsor, and enter an apprenticeship agreement are eligible for the credit. The value of the credit is either $4,800 or 50% of wages paid to the apprentice. The credit is refundable if the value exceeds tax liability.
The Secretary of Labor and Workforce Development is tasked with creating regulations and establishing an application process. The legislation requires annual reporting on the amount of tax credits claimed, number of participating apprentices and their wages, the number of applications received and number of participating employers, occupations of the apprentices, program outcomes for apprentices (such as job retention or further employment), and whether the tax credit is achieving its purpose “to create talent pipelines for businesses and provide career pathways toward high demand occupations for unemployed and underemployed residents of the commonwealth.”
Massachusetts is not the only state with incentive programs tied to apprenticeships. We were able to identify the following programs through the C2ER State Business Incentives Database. The majority offer tax credits, but some states provide grant assistance. Many are oriented toward manufacturing, but the construction trades and other occupations are eligible in certain states. Please follow the links below to learn more:
- Connecticut Apprenticeship Training Tax Credit in Manufacturing
- Connecticut Manufacturing Innovation Fund Apprenticeship Program
- Connecticut Manufacturing Apprenticeship Tax Credit
- Iowa Apprenticeship Program
- Maine Apprenticeship Program
- Pennsylvania Pre-Apprentice and Apprenticeship Grant Program
- Rhode Island Employer’s Apprenticeship Tax Credit
- South Carolina Apprenticeship Tax Credit
- West Virginia Apprenticeship Training Tax Credit for Construction Trades