Tax credit for apprenticeships aims to expand skills training beyond college degrees
H.R. 8624 — WAGES Act of 2026 · Filed by Nathaniel Moran (R-TX) · Introduced Apr 30, 2026 · Referred to committee
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What it does
This bill creates a federal tax credit for employers who hire and train apprentices in registered apprenticeship programs. Employers can claim a credit equal to 50% of qualified apprentice wages (capped at $5,000 per apprentice per quarter) and apprenticeship program expenses (capped at $5,000–$50,000 per quarter depending on apprentice count), reducing their payroll tax liability. The bill also allows apprenticeship awards (certificates, tools, etc.) to be treated as tax-free employee achievement awards up to $1,500 per employee.
Why we flagged it
The bill's core mechanism is a payroll-tax credit designed to reduce employer costs of apprenticeship training. While framed as workforce development, the operative effect is a tax subsidy to employers who participate in registered programs.
What the text implies
- The credit is refundable if it exceeds quarterly payroll-tax liability, meaning employers with low payroll-tax burdens (small firms, low-wage sectors) may receive cash refunds rather than tax offsets, effectively converting the credit into a direct subsidy.
- The bill allows third-party payors (professional employer organizations, staffing agencies) to claim the credit on behalf of employers, creating potential for misallocation and fraud if documentation and accountability rules are weak.
The full analysis lists 5 implications of this text.
Who stands to gain
employers in construction, manufacturing, healthcare, IT, transportation, and skilled trades; professional employer organizations and payroll processors; registered apprenticeship program sponsors