Origin: The tax expenditure allows employers to claim a credit against the personal income tax or corporate excise if they establish apprenticeship programs and hire apprentices in designated computer technology, health care technology, or manufacturing occupations. A tax credit is a dollar for dollar offset of the amount of tax that a taxpayer owes. The credit is equal to the lesser of $4,800 or 50% of the wages paid to the apprentice. Employers that claim the credit in a taxable year will be eligible for an additional credit in the following year with respect apprentices that are retained. Apprentices must be Massachusetts residents working for employers with business premises in the Commonwealth. The credit is refundable but nontransferable. The credit applies to taxable years beginning on or after January 1, 2019. Occupations eligible for the credit include a range of jobs in the designated fields. Such occupations generally include jobs that require technical skills but do not necessarily require post-secondary education. To be eligible for the credit, employers must register their apprenticeship programs and program participants with the Massachusetts Executive Office of Labor and Workforce Development, Division of Apprentice Standards. The amount of the credit available to any employer is determined by the Secretary for Labor and Workforce Development in consultation with the Massachusetts Executive Office for Administration and Finance. The total amount of cumulative credit available annually is limited to $2.5 million. Effective from January 1st, 2023, the credit has been extended to apprentices hired and trained by expansion industries identified by the Secretary of Labor and Workforce Development as critical to a regional labor market economy. The credit is a Massachusetts tax expenditure because it reduces the amount of personal income tax and corporate excise revenue that would otherwise be available to appropriate for other purposes.
Origin: St. 2018, c. 228; M.G.L. c. 63, §38HH
Corporate Excise Tax
Credits Against Tax
2.624
Apprentice Credit
The tax expenditure allows employers to claim a credit against the personal income tax or corporate excise if they establish apprenticeship programs and hire apprentices in designated computer technology, health care technology, or manufacturing occupations. A tax credit is a dollar for dollar offset of the amount of tax that a taxpayer owes. The credit is equal to the lesser of $4,800 or 50% of the wages paid to the apprentice. Employers that claim the credit in a taxable year will be eligible for an additional credit in the following year with respect apprentices that are retained. Apprentices must be Massachusetts residents working for employers with business premises in the Commonwealth. The credit is refundable but nontransferable. The credit applies to taxable years beginning on or after January 1, 2019. Occupations eligible for the credit include a range of jobs in the designated fields. Such occupations generally include jobs that require technical skills but do not necessarily require post-secondary education. To be eligible for the credit, employers must register their apprenticeship programs and program participants with the Massachusetts Executive Office of Labor and Workforce Development, Division of Apprentice Standards. The amount of the credit available to any employer is determined by the Secretary for Labor and Workforce Development in consultation with the Massachusetts Executive Office for Administration and Finance. The total amount of cumulative credit available annually is limited to $2.5 million. Effective from January 1st, 2023, the credit has been extended to apprentices hired and trained by expansion industries identified by the Secretary of Labor and Workforce Development as critical to a regional labor market economy. The credit is a Massachusetts tax expenditure because it reduces the amount of personal income tax and corporate excise revenue that would otherwise be available to appropriate for other purposes.
<a href="https://malegislature.gov/Laws/SessionLaws/Acts/2018/Chapter228" target="_blank">St. 2018, c. 228</a>; M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section38HH" target="_blank">c. 63, §38HH</a>
0.1
0.3
0.3
0.5
0.5
