SESSION OF 2023
SUPPLEMENTAL NOTE ON HOUSE BILL NO. 2292
As Amended by Senate Committee on
Commerce

Brief*
HB 2292, as amended, would create the Kansas
Apprenticeship Act (Act), which would establish a tax credit
and grant incentive programs for apprenticeships.

Apprenticeship Tax Credit
Tax Years 2023, 2024, and 2025
The bill would allow an eligible employer to claim the
apprenticeship tax credit for tax years commencing after
December 31, 2022, and ending before January 1, 2026, if
the eligible employer employs an apprentice:
● Pursuant to a registered apprenticeship
agreement;
● In accordance with a registered apprenticeship
plan for all or a portion of the probationary period,
as defined for that apprenticeship in the registered
apprenticeship standards, work process schedule
otherwise known as appendix A, or as designated
by the Secretary of Commerce (Secretary); and
● At the time such probationary period is completed.
The bill would require the tax credit to be claimed by an
eligible employer for the taxable year in which the apprentice
____________________
*Supplemental notes are prepared by the Legislative Research
Department and do not express legislative intent. The supplemental
note and fiscal note for this bill may be accessed on the Internet at
http://www.kslegislature.org
completed the probationary period or the taxable year
succeeding the calendar year in which the apprentice
completed the probationary period while employed by the
eligible employer, as determined by the Secretary and set
forth in the agreement with the Secretary.
The bill would allow subsequent tax credits to be
claimed for up to three successive calendar years after the
date on which the probationary period of the apprentice was
met by any eligible employer who subsequently employs such
apprentice in all or a portion of the year. The bill would require
the tax credit to be claimed by an eligible employer for the
taxable year in which the apprentice was employed or the
taxable year succeeding the calendar year in which the
apprentice was employed by the eligible employer, as
determined by the Secretary and set forth in the agreement
with the Secretary.
The Secretary of Revenue, in consultation with the
Secretary of Commerce, would be required to establish a
scale reflecting the ranges of wages and other expenditures
an eligible employer has invested in an apprentice and a
corresponding tax credit amount. The amount of the tax credit
awarded would be in accordance with the scale, up to $2,500
for each apprentice employed.
The tax credit could be awarded for up to 20 apprentices
employed in each taxable year per eligible employer and
would not be awarded for employment of the same
apprentice more than 4 times.
Tax Years After December 31, 2025
For tax years commencing after December 31, 2025, the
bill would allow an eligible employer to claim the
apprenticeship tax credit, if the eligible employer employs an
apprentice:


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 ● Pursuant to a registered apprenticeship
agreement; and
● In accordance with a registered apprenticeship
plan for a continuous period of time constituting at
least 25.0 percent of the apprenticeship time period
required by the registered apprenticeship program.
The bill would require the tax credit to be taken in the tax
year next succeeding the calendar year in which the
employment requirement to claim the credit is met.
The eligible employer would be able to claim the tax
credit in successive tax years based on up to a cumulative
total of four successive calendar years of employment for an
individual apprentice.
The amount of the tax credit would be up to $2,750 for
each employed apprentice, not to exceed 20 such credits in
any taxable year per eligible employer. The Secretary could
authorize a credit for employment of less than a full calendar
year pursuant to rules and regulations adopted by the
Secretary.
Career and Technical Education (CTE) Program
In addition to the credit allowed for an apprentice in tax
years commencing after December 31, 2025, the bill would
also allow an eligible employer to claim a tax credit for an
apprentice who is enrolled in a secondary or postsecondary
CTE program, is under 18 years of age at the time the credit
is claimed, has been employed by the eligible employer for at
least 90 days, and is participating in:
● An apprenticeship program registered with the
Secretary and funded through the Carl D. Perkins
Career and Technical Education Act of 2006, as
revised by the Strengthening Career and Technical
Education for the 21st Century Act;

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 ● An adult basic education and literacy program
funded under Title II of the Workforce Innovation
and Opportunity Act; or
● A public workforce program funded under Title I
and Title III of the Workforce Innovation and
Opportunity Act.
An eligible employer would be required to claim the
credit in the taxable year next succeeding the calendar year
in which the requirements to claim the credit are met.
The bill would limit the amount of the credit to not
exceed $500 and would limit the number of credits an eligible
employer could claim per tax year to no more than 10 credits.
Limitations
The bill would limit the aggregate amount of all tax
credits for all eligible employers issued under the Act to $7.5
million each taxable year.
Tax credits would not be refundable or transferable and
would be claimed on a pro-rata basis by the owners of eligible
employers that are entities taxed under subchapter S or K of
the federal Internal Revenue Code, limited liability
companies, or professional corporations authorized to do
business in the state.
Agreement with the Secretary of Commerce
The bill would require eligible employers to enter into an
agreement regarding the employment of apprentices with the
Secretary on such terms and conditions as the Secretary may
require. The agreement would:
● Set forth the amount per credit or amount of
cumulative credits an employer may earn based on
specified conditions or attainment of specified
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 employment or training goals and any other
conditions for such credits;
● If applicable, set forth the relevant provisions of the
scale reflecting the ranges of wages and other
expenditures an eligible employer has invested in
an apprentice and a corresponding tax credit
amount, as determined by the Secretary of
Revenue in consultation with the Secretary of
Commerce; and
● Require the eligible employer provide such
information as required by the Secretary of
Commerce or Secretary of Revenue for purposes
of substantiating eligibility for the tax credit, the
development and expansion of apprenticeships in
the state and the report required under the Act.
If an agreement is approved by the Secretary of
Commerce, the eligible employer would be required to submit
such information in the manner and form as prescribed by the
Secretary of Commerce and Secretary of Revenue to
demonstrate eligibility for the credit each tax year a credit is
claimed. The eligible employer would also need to meet the
requirements of any rules and regulations of the Secretary of
Commerce or Secretary of Revenue.
Duties of Secretary of Commerce
The Secretary of Commerce would be required to advise
the Secretary of Revenue of the potential tax credits available
to the eligible employer. The Secretary of Commerce would
also be required to certify eligible employers to the Secretary
of Revenue before a tax credit may be awarded.
The Secretary of Commerce would be required to
consult with the Secretary of Revenue, Kansas
postsecondary technical education authority and educational
institutions, technical schools, secondary schools, business
or industry associations, and other appropriate entities to
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coordinate implementation, administration, and development
of apprenticeship programs in the state, including through the
use of apprenticeship tax credits.
The Secretary would be required to provide an annual
report before January 31 of each year to the House
Committee on Commerce, Labor and Economic Development
and the Senate Committee on Commerce to account for the
effectiveness of the Act. The report would be required to
include information regarding:
● The number and type of eligible employers, eligible
nonprofit employers, and eligible health care
employers;
● The number and type of apprenticeships
incentivized;
● The amount of tax credits and grants issued and
the amounts issued per industry and per eligible
employer, eligible nonprofit employer, and eligible
health care employer;
● Results of the program including information on the
employment of individuals following the
participation in an apprenticeship program, the
extent and nature of coordination and efforts with
other entities to develop apprenticeship programs,
and the effect of such efforts on the tax credits and
grants on apprenticeship program development;
and
● Other information requested by the respective
committees.
Rules and Regulations
The bill would authorize the Secretary of Commerce or
the Secretary of Revenue to adopt rules and regulations as

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necessary to establish standards for participation and
eligibility and to implement and administer the Act.
Union Affiliation
The bill would stipulate that participation of an employee
with an apprenticeship program under the Act and registration
with the Secretary would not constitute union affiliation,
unless the employee expressly elects to affiliate with a union.

Kansas Nonprofit Apprenticeship Grant Program
The bill would also create the Kansas Nonprofit
Apprenticeship Grant Program (Program) and authorize the
Secretary to develop and administer the Program to award
grants to eligible nonprofit employers and eligible nonprofit
health care employers that employ an apprentice pursuant to
a registered apprenticeship agreement and in accordance
with a registered apprenticeship plan for the purpose of
covering administrative costs of registered apprenticeship
programs. The Secretary would be required to develop
application procedures, forms and grant award terms,
conditions, and criteria and consult with appropriate state
agencies, institutions, nonprofit organizations and
associations, private health care associations, nonprofit
Kansas health care providers, and other appropriate entities
in developing the grant program.
To be eligible for grants under the Program, an eligible
nonprofit employer or eligible nonprofit health care employer
would be required to enter into an agreement with the
Secretary to employ an apprentice for the same period of
time as the probationary period, as defined for the
apprenticeship in the registered apprenticeship program
standards, or a continuous period of time constituting at least
25.0 percent of the apprenticeship time period required by the
registered apprenticeship program. The Secretary could
authorize employment of an apprentice for less than a full
year.
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 The bill would require grants to be awarded pursuant to
an agreement with the eligible nonprofit employer or eligible
nonprofit health care employer upon such terms and
conditions as the Secretary may require and could include
program development or employment or training goals in
addition to specified employment requirements with respect
to an apprentice.
The bill would limit the grant amount to $2,750 per
apprenticeship per taxable year, not to exceed 4 successive
years, and limit the number of grants to no more than 20 per
eligible nonprofit employer or per eligible nonprofit health care
employer per taxable year.
Kansas Nonprofit Apprenticeship Grant Program Fund
The bill would create the Kansas Nonprofit
Apprenticeship Grant Program Fund (Fund) to be
administered by the Secretary. All moneys credited to the
Fund would be used to provide grants for the administration
of apprenticeship programs by eligible nonprofit employers
and eligible nonprofit health care employers in Kansas.
On July 1, 2023, and each July 1 thereafter, the bill
would require, subject to appropriation acts, $2.5 million from
the State General Fund (SGF) be transferred to the Fund.
Any unencumbered balance in the Fund at the end of a fiscal
year would remain credited to the Fund for use in the
succeeding fiscal year and could not exceed $2.5 million. On
June 30, 2024, and each June 30 thereafter, the director of
accounts and reports would be required to transfer the
amount, if any, of unencumbered moneys in the fund in
excess of $2.5 million to the SGF.
The bill would limit the sum of the amount of all tax
credits and grants issued pursuant to the Act to not exceed a
total amount of $10.0 million in each taxable year.


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Kansas Educator Registered Apprenticeship Grant
Program
The bill would also create the Kansas Educator
Registered Apprenticeship Program (Educator Program) and
direct the State Board of Education, Commissioner of
Education, and the Secretary to coordinate to develop the
program, obtain necessary approvals for the program under
state and federal law, and administer the program, which
would award grants to applicant schools for the purpose of
increasing the number of qualified, credentialed teachers in
Kansas by identifying candidates to participate in the
Educator Program, secure licensure, and engage in the
profession of teaching in Kansas. Grants would be awarded
upon the approval of the Educator Program by the Secretary.
The bill would require the State Board of Education, in
coordination with the Secretary, to adopt, by March 1, 2024,
rules and regulations to implement the Educator Program,
including establishing:
● The grant application procedure and forms;
● Terms and conditions for the award of a grant,
which would include requiring partnerships
between applicant schools and eligible training
instruction providers, requiring the identification of
projected candidates in the manner designated by
the Secretary, and the use of grant funds for the
payment of apprentice tuition and fees up to a
maximum of $2,750 per year for four years, and
the payment of apprenticeship wages;
● Prioritization of grant applications providing for the
apprentice to continue current employment by
utilizing flexible learning models; and
● A method to award grands equitably across the
state geographically.

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 The bill would require the Commissioner of Education
and the State Board of Education, in coordination with the
Secretary, to annually evaluate the Educator Program
beginning in 2025 and submit a report of the evaluation to the
House and Senate committees dealing with education and
commerce by January 31 of each succeeding year.
Kansas Educator Registered Apprenticeship Grant Program
Fund
The bill would create the Kansas Educator Registered
Apprenticeship Grant Program Fund (Educator Program
Fund) and provide for expenditures from the fund to be made
to award grants under the Educator Program. Expenditures
from the Educator Program Fund would be made in
accordance with appropriations acts. The bill would provide
for an annual transfer, beginning July 1, 2023, of $3.0 million
SGF to the Educator Program Fund, and any unencumbered
balance of the Educator Program Fund at the end of each
fiscal year would remain in the Educator Program Fund for
use in the succeeding fiscal year and could not exceed $3.0
million. On June 30, 2024, and each June 30 thereafter, the
director of accounts and reports would be required to transfer
the amount, if any, of unencumbered moneys in the fund in
excess of $3.0 million to the SGF.

Definitions
The bill would define the terms “Act,” “apprentice,”
“apprenticeship,” “apprenticeship agreement,” “apprenticeship
program,” “applicant school,” “candidate,” “education
apprentice,” “eligible employer,” “eligible nonprofit employer,”
“eligible healthcare employer,” “eligible related training
instruction provider,” “intermediary,” “registered
apprenticeship agreement,” “registered education
apprenticeship program,” “registered apprenticeship
program,” “Secretary,” and “sponsor.”

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Background
The bill was introduced in the House Committee on
Commerce, Labor and Economic Development at the request
of a representative of the Kansas Chamber of Commerce.
House Committee on Commerce, Labor and Economic
Development
In the House Committee hearing, proponent testimony
was provided by representatives of Kansas Business
Roundtable, Kansas Chamber of Commerce, Kansas
Department of Commerce, Kansas Society for Human
Resources Management, Hamilton-Ryker, and a