This bill amends the Income Tax Act of 1967 by adding two new sections, 279 and 672, which establish tax credits for qualified taxpayers who train apprentices or employ eligible students in work-based learning experiences. Starting from tax years beginning on January 1, 2026, qualified taxpayers can claim a credit equal to 50% of qualified expenses for each apprentice trained or eligible student employed, with a cap of $2,000 per individual. Additionally, taxpayers with fewer than 50 employees can claim an extra 10% of the total credits calculated for apprentices and eligible students. The bill also outlines the definitions of key terms such as "apprentice," "eligible student," and "qualified expenses."

Furthermore, if the tax credit exceeds the taxpayer's liability, the excess amount will be refunded. The bill mandates that the Department of Labor and Economic Opportunity prepare an annual report detailing the utilization of these credits, including the number of apprentices and eligible students involved, completion rates, and wage outcomes for apprentices. This report is to be submitted to relevant legislative committees by March 1 each year.

Statutes affected:
House Introduced Bill: 206.1, 206.847