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HB 238

AN ACT relating to an apprenticeship tax credit.

2026 Regular Session Introduced by Nima Kulkarni

The bill creates a state income tax credit for Kentucky employers who establish or maintain registered apprenticeships to offset program costs and encourage private investment in s

to Appropriations & Revenue (H)
#taxation #income--corporate #income--individual #workforce
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Bill Summary · HB 238

HB 238 (2026RS) — An Act relating to an apprenticeship tax credit (Kentucky)

Main purpose and intent

HB 238 proposes establishing and authorizing a state income tax credit for employers that create and sustain registered apprenticeships. The bill aims to incentivize private sector investment in apprenticeship programs to develop skilled labor, address workforce gaps, and enhance long-term productivity in Kentucky industries.

Key provisions and changes proposed

  • Apprenticeship tax credit program: Creates a state income tax credit for eligible employers who establish or maintain registered apprenticeships.
  • Credit amount and structure (details may be specified in the bill):
    • The credit is designed to offset a portion of qualified apprenticeship program costs incurred by an employer.
    • Possible gradient or cap on the credit depending on factors such as the number of apprentices, industry, or wage levels; exact figures would be defined in the text or implementing regulations.
  • Eligibility criteria:
    • Employers must participate in or establish a program that is registered and recognized under a Kentucky apprenticeship framework.
    • Credits likely contingent on compliance with reporting, recordkeeping, and program outcomes (e.g., completion rates, wages paid to apprentices).
  • Qualified costs possibly covered:
    • Wages for enrolled apprentices during on-the-job training.
    • Program administration expenses, instructor costs, and related training materials.
    • Related instruction costs if delivered through approved training providers.
  • Recapture and renewal provisions:
    • Provisions may exist to recapture or reduce credits if an employer fails to meet program requirements, terminates an apprenticeship prematurely, or does not meet required outcomes.
    • The bill may outline carryforward provisions for unused credits within statutory limits.
  • Interaction with other incentives:
    • The credit would operate alongside existing incentives and could require coordination with other state or federal workforce programs.

Who would be affected

  • Primary beneficiaries: Private sector employers in Kentucky that sponsor or expand registered apprenticeship programs and meet eligibility requirements.
  • Indirect beneficiaries: Apprentices themselves (access to training and potential wage progression), higher-education and training providers involved in apprenticeship delivery, and regional economies seeking skilled labor.
  • State impact: Potential reduction in workforce development gaps and possible fiscal impact due to foregone tax revenues from credits; agencies may need to administer the program and ensure compliance.

Procedural and timeline aspects

  • Introduced: January 8, 2026 (Kentucky House).
  • Referral: Referred to Committee on Committees (H) on the same day, a procedural step used in Kentucky to assign the bill to appropriate policy committees.
  • Current action history: On January 15, 2026, the bill was moved to the Appropriations & Revenue Committee, indicating consideration of fiscal impact and revenue implications.
  • Next steps: If advanced, the bill would pass through committee hearings, potential amendments, and floor votes in the Kentucky House, followed by consideration by the Senate. Fiscal notes or revenue impact analyses would accompany advancement.

Notes and considerations

  • The summary above reflects typical features of apprenticeship tax credit bills. Exact credit amounts, eligible industries, program duration requirements, and annual caps are defined in the bill text and any accompanying fiscal note.
  • Co-sponsor: Nima Kulkarni, indicating bipartisan or sponsor-level support, but the overall legislative feasibility would depend on committee deliberations and budgetary impact.
  • For a complete understanding, readers should review the full bill language, fiscal impact statements, and any implementing regulations once published.

Compiled from official sources — confirm details with the bill’s official record.

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