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HB 2052

Eliminating the requirement that the apprenticeship training tax credit base be limited to wages paid to apprentices in the construction trades

2025 Regular Session Introduced by Vernon Criss and 2 co-sponsors

House Bill 2052 expands apprenticeship tax credits to all industries, encouraging workforce training by allowing $2/hour credits for wages paid to apprentices, boosting employability.

To Finance
#taxation
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WeVote Research Nonpartisan
Bill Summary · HB 2052

Summary of House Bill 2052

Bill Information

  • Bill Number: HB 2052
  • Title: Eliminating the requirement that the apprenticeship training tax credit base be limited to wages paid to apprentices in the construction trades
  • Status: To Finance
  • Introduced: January 22, 2025
  • Classification: Bill
  • Subject: Taxation

Purpose and Intent

House Bill 2052 aims to broaden the scope of the apprenticeship training tax credit in West Virginia by removing the restriction that limits the credit to wages paid to apprentices specifically in the construction trades. This change is intended to encourage a wider range of industries to participate in apprenticeship programs, thereby promoting workforce development and skill training across various sectors.

Key Provisions

  • Tax Credit Eligibility:

    • The bill allows taxpayers to claim a tax credit for wages paid to apprentices registered with the United States Department of Labor, regardless of the industry in which the apprenticeship occurs.
    • The credit is applicable for tax years beginning on or after January 1, 2026.

  • Credit Amount:

    • The tax credit is calculated at $2 per hour for each hour worked by an apprentice, with a maximum credit of $2,000 or 50% of actual wages paid during the tax year, whichever is less.

  • Qualified Apprenticeship Training Program Requirements:

    • The apprenticeship program must consist of 2,000 to 10,000 hours of on-the-job training and must be certified by the appropriate federal agency.

  • Application of Credit:

    • The credit can be applied against corporation net income taxes first, followed by personal income taxes if any credit remains.

  • Unused Credit:

    • Any unused credit cannot be carried back to previous tax years and will be forfeited if not utilized.

Impact

  • Who Would Be Affected:

    • This bill would benefit employers across various industries who hire apprentices, not just those in construction. It aims to incentivize businesses to invest in workforce training and development.
    • Apprentices in non-construction fields would also gain access to training opportunities, potentially increasing their employability and skill sets.

  • Fiscal Implications:

    • The fiscal note indicates that the bill may increase state revenues through the collection of fees related to the licensing process, although the exact amount is currently unknown.

Procedural Timeline

  • January 22, 2025: Introduced in the House.
  • March 27, 2025: Passed the House and communicated to the Senate.
  • March 29, 2025: Introduced in the Senate and referred to the Finance Committee.

Conclusion

House Bill 2052 represents a significant shift in West Virginia's approach to apprenticeship training tax credits, aiming to enhance workforce development by expanding eligibility beyond the construction sector. By incentivizing a broader range of industries to engage in apprenticeship programs, the bill seeks to foster a more skilled workforce and stimulate economic growth.

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

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