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Bill

A 4935

Relates to dependent workers

2025 Regular Session Introduced by Harry Bronson and 3 co-sponsors

Establishes an AI Apprenticeship Program and offers tax credits up to 50% of wages or $5,000 per AI apprentice, per year, for up to four periods.

REFERRED TO LABOR
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Bill Summary · A 4935

Summary of Assembly Bill No. 4935 (A-4935)

Overview and Purpose

A-4935 establishes an Artificial Intelligence Apprenticeship Program within the New Jersey Department of Labor and Workforce Development (DOLWD) and creates corresponding tax credits to encourage employers to hire and train AI industry apprentices. The program aims to connect AI companies with educational institutions, support employer-driven apprenticeship programs that meet state and federal standards, and promote training in AI technology, data analytics, and automation.

Key Provisions

1) Artificial Intelligence Apprenticeship Program

  • Establishment: Created in the DOLWD.
  • Program activities:
    • Collaborate with AI industry companies to offer apprenticeships focused on AI technology, data analytics, and automation.
    • Facilitate partnerships between employers and educational institutions to ensure comprehensive training.
    • Assist employers in establishing and administering apprenticeship programs compliant with applicable standards.
    • Inform employers about the AI apprenticeship tax credit program.
  • Definitions:
    • “Artificial intelligence industry” covers occupations involved in AI software/hardware development and end-use applications, including tasks such as visual perception, speech recognition, decision-making, language translation, and generative AI.
    • “Program” refers to the Artificial Intelligence Apprenticeship Program.

2) AI Apprenticeship Tax Credit (Corporation Business Tax)

  • Effective date: For privilege periods beginning in 2026.
  • Credit amount: The lesser of $5,000 per apprentice or 50% of the wages paid to a qualified AI industry apprentice during the privilege period.
  • Limits and timing:
    • Not to exceed $5,000 per apprentice per privilege period.
    • Applies within the corporate business tax framework; order of credit application determined by the director; credit cannot reduce tax liability below statutory minimums.
    • Eligibility: Apprentice must be an unskilled or semi-skilled worker in the AI industry (including data analytics and automation) employed for at least 20 calendar weeks in the privilege period as part of an AI industry training program, not exceeding four privilege periods.

3) AI Apprenticeship Tax Credit (New Jersey Gross Income Tax)

  • Effective date: For taxable years beginning in 2026.
  • Credit amount: The lesser of $5,000 per apprentice or 50% of the wages paid to a qualified AI industry apprentice during the privilege period.
  • Limits and timing:
    • Similar to the CBT credit: priority rules set by the director; credit cannot reduce gross income tax liability below statutory minimums.
    • Eligibility and structure mirror the CBT credit, including 20-week minimum engagement and a cap of four privilege periods.

4) General Provisions

  • Application process: Taxpayers must apply in a manner determined by the director.
  • Definitions repeated for both tax credits to reference the AI industry and qualified apprentices.
  • Effective date: The act takes effect 30 days after enactment.

Timelines and Status

  • Introduced: October 21, 2024.
  • Assembly Science, Innovation and Technology Committee: favorable report dated January 23, 2025.
  • Subsequent actions: Referred to Assembly Labor (February 10, 2025).
  • Related: Companion bill S-3871; other related A-series bills exist in prior sessions.

Who Is Affected

  • Employers in the artificial intelligence industry (AI software/hardware development, data analytics, automation) that hire and train apprentices meeting the 20-week requirement.
  • Apprentices who are unskilled or semi-skilled workers entering AI-related training programs.
  • Educational institutions partnering with AI employers for apprenticeship pathways.
  • The state, through DOLWD program administration and tax credit policy guidance.

Potential Impact

  • Encourages employer-provided AI training by offering up to 50% of apprentice wages, capped at $5,000 per apprentice per privilege period.
  • Expands workforce development in AI-related fields and may increase collaboration between industry and educators.
  • Provides a predictable, multi-year incentive (up to four privilege periods) to support longer-term apprenticeship commitments starting in 2026.

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

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