The bill establishes a tax credit program aimed at encouraging manufacturing employers in New Jersey to provide structured training for machine and metal trade apprentices. Starting from January 1, 2027, taxpayers will be eligible for a credit against the corporation business tax and the New Jersey gross income tax, amounting to 50% of the wages paid to qualified apprentices, capped at $7,500 per apprentice per tax period. To qualify for this credit, apprentices must be unskilled or semi-skilled individuals employed for at least 1,500 hours within the tax year as part of a training program that lasts no more than four tax years, which includes wage progression and defined job training processes.

The bill also specifies that the order of priority for applying this credit alongside other tax credits will be determined by the director. Additionally, it clarifies that business entities classified as partnerships or New Jersey S corporations will not receive the credit directly but will have their share of the credit allocated based on their distributive share of partnership or S corporation income. The credits are nonrefundable and are designed to enhance the skilled labor pool in New Jersey's manufacturing sector.