Generally revise employee tax credit laws to include apprentices

2025 Regular Session

Expands the state employee tax credit to include apprentices, giving employers a credit for hiring and training apprentices in approved programs.

(LC) Draft Ready for Delivery

#laborandemployment(seealso:unemploymentinsurance;workers'comp) #revenue #state

Overview

LC 1364 is a draft bill introduced on November 14, 2024, with the aim of revising the state’s employee tax credit laws to include apprentices. The bill is being developed by the Legislative Counsel (LC) and is in the final drafting stages, with Assembly involvement as of March 2025. The subject areas touched include Labor and Employment, Unemployment Insurance, Workers’ Compensation, and state Revenue.

Purpose and intent

The primary purpose is to expand the scope of existing employee tax credits to explicitly cover apprentices. By doing so, the bill seeks to strengthen incentives for employers to hire and train apprentices within recognized programs.

The measure signals a policy goal of supporting workforce development and apprenticeship pipelines as a component of economic and labor market strategy.

Key provisions (anticipated framework)

Note: The exact text will determine the precise language, definitions, and calculations. Based on the title and status, expected areas likely to be addressed include:
- Eligibility and definitions: Inclusion of apprentices as qualifying employees for the tax credit, with a clear definition of what qualifies as an “apprentice.”
- Credit parameters: Specification of credit amount or percentages, eligibility duration, and any caps or limits.
- Program requirements: Possible requirements related to apprenticeship program accreditation, duration, wage levels, or training components.
- Interaction with existing credits: Provisions explaining how the apprentice credit interacts with other state tax credits or incentives.
- Compliance and reporting: Requirements for employers to document apprenticeship status and claim credits, plus administrative rules for the tax department.
- Effective date: The date when the amended credit would become available, and whether there are phased or transitional provisions.

Affected parties

Employers: Particularly those that hire and train apprentices, who would be eligible to claim the revised tax credit.

Apprentices: Participants in approved apprenticeship programs who may become eligible for the credit through their employers.

Training providers and programs: Entities delivering apprenticeship curricula that meet the bill’s criteria.

State revenue and labor agencies: Responsible for administering, auditing, and enforcing the revised credit.

Procedural and timeline details

Introduced: November 14, 2024

Legislative Actions timeline (highlights):

2024-11-14: Drafter Assigned
2025-03-25–03-27: Drafts progressing through Legal Review, Edit, Input/Proofing, and Assembly
2025-03-27: Draft in Final Drafter Review; Draft Ready for Delivery; Draft in Assembly

Status: LC Draft Ready for Delivery (as of March 2025)

Potential impact

Economic and labor market: Potentially stronger incentives for apprenticeships, which could improve entry paths into skilled trades and regulated professions.

Public finance: Fiscal impact depends on credit amount and utilization; could affect state tax revenues and require administrative resources for compliance and enforcement.

Administrative: New or revised requirements for employers and the tax authority to verify apprenticeship status and program compliance.

Bill