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Bill

HR 8624

WAGES Act of 2026

119th Congress Introduced by Nathaniel Moran

A payroll tax credit would reduce employers’ payroll taxes for wages and expenses tied to apprenticeships, incentivizing more apprenticeship programs.

Introduced in House
0
WeVote Research Nonpartisan
Bill Summary · HR 8624

Summary of HR 8624 (119th Congress)

Overview

  • Title: To amend the Internal Revenue Code of 1986 to provide a credit against employer payroll taxes for wages and other expenses paid or incurred for apprenticeship programs.
  • Status: Introduced in the House on April 30, 2026; referred to the House Committee on Ways and Means.
  • Sponsor: Co-sponsored by Rep. Nathaniel Moran.

Purpose and Intent

The bill aims to encourage employer participation in apprenticeship programs by providing a payroll tax credit. By offsetting costs associated with wages and related expenses for apprentices, the measure seeks to increase the availability of on-the-job training, skill development, and workforce readiness across industries.

Key Provisions and Changes (Proposed)

  • Payroll Tax Credit: Establishes a credit against employer payroll taxes. This means employers could reduce their payroll tax liability (the employer share of Social Security and/or Medicare taxes) by eligible amounts related to apprenticeship activities.
  • Eligible Wages and Expenses: The credit covers wages paid to apprentices and other specified expenses incurred in connection with apprenticeship programs. The exact categories of eligible wages and expenses (e.g., stipends, benefits, training materials, instructional costs, related overhead) would be defined in the bill text.
  • Apprenticeship Programs Covered: Programs would likely need to meet certain criteria to qualify (e.g., registered or recognized apprenticeship programs, or programs meeting standards established by the Department of Labor or other administering agency). The bill would specify which apprenticeship activities generate credit eligibility.
  • Credit Calculation and Limitations: The bill would set forth how the credit is calculated (e.g., a percentage of eligible wages/expenses) and any per-apprentice, per-employer, or annual limits. There may be a cap or phase-in/phase-out provisions, and potential interaction with other credits or tax benefits.
  • Refundability and Carryforward: Provisions could address whether the credit is refundable, nonrefundable, or partially refundable, and whether unused credits can be carried forward to future years.
  • Coordination with Other Provisions: The bill might include how this credit interacts with existing labor, education, or tax incentives, including any requirements for recordkeeping or reporting to ensure compliance and auditability.

Note: The exact dollar amounts, percentage credit, caps, eligibility criteria, and administrative details would be specified in the formal text of the bill. The summary above reflects the typical structure of a payroll tax credit for apprenticeship programs.

Who Would Be Affected

  • Employer Eligibility: Employers sponsoring registered or qualifying apprenticeship programs could claim the credit against their payroll tax liability.
  • Apprentices and Employers in Various Sectors: Industries that rely on apprenticeship training (e.g., manufacturing, construction, technology, healthcare) could benefit by reducing the net cost of apprenticeship wages and related expenses.
  • Administering Agencies: Likely involvement from the Internal Revenue Service (IRS) for enforcement, proper documentation, and compliance verification; potentially the Department of Labor if criteria for qualifying programs are aligned with apprenticeship standards.
  • Small vs. Large Employers: Depending on the credit's structure, small businesses with apprenticeship programs could see meaningful relief, while larger employers could have more substantial credit opportunities based on eligible wages/expenses.

Procedural and Timeline Aspects

  • Referral: The bill was referred to the House Committee on Ways and Means (April 30, 2026), indicating it will undergo committee consideration, potential amendments, and a markup before any floor vote.
  • Introduction: Introduced in the House on April 30, 2026.
  • Next Steps: If advanced by the committee, the bill would proceed to debate on the House floor, potential reconciliation with Senate suggestions (if applicable), and ultimately passage or rejection.

Practical Implications

  • If enacted, the credit could lower after-tax costs for employers investing in apprenticeship training, potentially expanding access to apprenticeships, workforce development, and skilled-labor pipelines.
  • The policy design will determine how broadly the benefit applies (e.g., number of apprentices, industry eligibility, and whether the credit is fully or partially refundable).

If you’d like, I can tailor this summary to focus on a particular industry, compare it with existing apprenticeship tax incentives, or provide a plain-English explanation of how the credit would be claimed on payroll tax filings.

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

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