(WASHINGTON) - Indiana Senator Todd Young is promoting legislation designed to encourage more businesses to create and expand apprenticeship programs through federal tax incentives.
Young and Texas Congressman Nathaniel Moran have introduced the Workforce Apprenticeship Growth and Education Support Act, known as the WAGES Act.
The proposal would create a refundable payroll tax credit for employers that participate in or maintain a Registered Apprenticeship Program.
Supporters say the credit would help offset wages paid to apprentices and mentors, along with other costs associated with operating apprenticeship programs.
Young said apprenticeships provide workers with valuable skills while helping employers develop qualified employees. He said the legislation would make it easier for businesses to invest in training programs at a time when many industries are struggling to fill open positions.
Under the proposal, employers would have to participate in a registered apprenticeship program, employ at least one qualified apprentice during a calendar quarter and avoid receiving federal payments for the same wages or expenses covered by the credit.
Eligible expenses would include classroom instruction, technical training, on-the-job training costs, mentor compensation, program development and maintenance expenses, and certain collective bargaining agreement contributions that support apprenticeship programs.
Supporters say the bill is aimed at addressing workforce shortages while creating additional career pathways for workers who choose alternatives to a traditional four-year college degree.
The legislation has been introduced in Congress but has not yet received a vote.