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Bill

Bill

S 2860

Establishes Artificial Intelligence Apprenticeship Program and artificial intelligence apprenticeship tax credit program.

2026-2027 Regular Session Introduced by Angela McKnight

New Jersey creates an Artificial Intelligence Apprenticeship Program with tax credits for employers who hire and train AI industry apprentices, up to $5,000 per apprentice per peri

Introduced in the Senate, Referred to Senate Labor Committee
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Bill Summary · S 2860

Overview

Bill S 2860 (New Jersey, Session 222) establishes an Artificial Intelligence Apprenticeship Program within the Department of Labor and Workforce Development and creates an accompanying tax credit program for employers that hire and train qualified artificial intelligence industry apprentices. The program targets apprenticeships in AI technology, data analytics, and automation, and provides wage-based tax credits at the corporate business tax and gross income tax levels.

Main purpose and intent

  • Create and administer an Artificial Intelligence Apprenticeship Program to grow a skilled AI workforce in New Jersey.
  • Encourage employers to partner with educational institutions to provide structured training aligned with state and federal apprenticeship standards.
  • Provide financial incentives to employers via tax credits for employing AI industry apprentices, with the aim of expanding training opportunities and workforce readiness in the AI sector.

Key provisions and changes

1) Artificial Intelligence Apprenticeship Program

  • Established in the Department of Labor and Workforce Development.
  • Activities include:
    • Collaboration with AI industry companies to offer apprenticeships focused on AI technology, data analytics, and automation.
    • Facilitation of employer-educator partnerships to ensure theoretical and practical training for apprentices.
    • Assistance to employers in establishing and administering apprenticeships that comply with applicable standards.
    • Information provision to employers about the AI apprenticeship tax credit program.
  • Definitions:
    • “Artificial intelligence industry” covers occupations involved in software/hardware development and end-use applications that perform tasks requiring human intelligence (e.g., visual perception, speech recognition, decision-making, language translation, and generative AI).
    • “Program” = Artificial Intelligence Apprenticeship Program.

2) Corporate Tax Credit (New Jersey Gross Income Tax and CBT)

  • Effective for privilege periods beginning in 2026.
  • Credit against corporate business tax (CBT) equal to the lesser of:
    • One-half of wages paid to a qualified AI industry apprentice for the privilege period, or
    • $5,000 per apprentice per privilege period.
  • Credit priority and interaction:
    • Director-determined order of applying this credit with other applicable credits.
    • Credit cannot reduce tax liability below the statutory minimum.
  • Eligibility and mechanics:
    • Taxpayers apply in a Director-determined form/manner.
    • Definitions aligned with those in the apprenticeship program.
    • “Qualified AI industry apprentice” means an unskilled or semi-skilled person in the AI industry (including data analytics and automation) employed for at least 20 calendar weeks in a privilege period as part of an AI industry training program that complies with state and federal apprenticeship standards; credit can be claimed for up to four privilege periods.

3) Gross Income Tax Credit (N.J.S. 54A)

  • Effective for taxable years beginning in 2026.
  • Credit against New Jersey gross income tax equal to the lesser of:
    • One-half of wages paid to a qualified AI industry apprentice for the privilege period, or
    • $5,000 per apprentice per privilege period.
  • Similar rules for credit priority, minimum tax liability, and application process as the CBT credit.
  • Same definitions for “Artificial intelligence industry” and “Qualified AI industry apprentice.”

4) Effective Date

  • The act takes effect on the 30th day after enactment.

Who/what would be affected

  • Employers in New Jersey who hire and train individuals as artificial intelligence industry apprentices (including data analytics and automation roles).
  • Apprentices enrolling in AI-related programs that comply with state and federal apprenticeship standards.
  • Educational institutions partnering with AI industry employers to deliver training.
  • The Department of Labor and Workforce Development, which would administer the program and oversee implementation and guidance on tax credits.

Procedural and timeline notes

  • Introduction: January 13, 2026 (Senate); referred to Senate Labor Committee.
  • Effective date: 30 days after enactment.
  • Tax credits start for privilege periods and taxable years beginning in 2026.
  • Credits are capped per apprentice at $5,000 per privilege period and are limited to a maximum of four privilege periods.

Potential impact

  • Encourages growth of a structured AI workforce pipeline in New Jersey.
  • Provides measurable incentives (up to $5,000 per apprentice per period, half of wages) to employers to invest in AI training.
  • Creates a formal framework for employer-educator collaboration to ensure relevant skill development.
  • Could increase apprenticeship participation in AI, data analytics, and automation sectors, aligning training with industry needs.

Note: This summary reflects the bill text and stated intent. If enacted, program rules, cap details, and administration may be refined through implementing regulations.

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

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