Senators Introduce Bipartisan Bill to Create Tax Credit for Hiring Apprentices
On April 10, Senators Cory Booker (D-NJ) and Tim Scott (R-SC) introduced S. 2234, the Leveraging and Energizing America’s Apprenticeship Programs (LEAP) Act, to incentivize registered apprenticeships through a new tax credit for employers.
This bipartisan legislation would create a Federal tax credit for employers hiring new apprentices who are registered with the Department of Labor or a state apprenticeship agency, such as those participating in IEC’s apprenticeship program. The credit would be $1,500 for each new apprentice hired who is under the age of 25 and $1,000 for apprentices older than 25.
The LEAP Act would help minimize the skills gap that is beginning to affect IEC’s members and other similar industries. It would also lower the youth unemployment rate by promoting the importance of apprenticeship. As IEC pointed out in a letter to the bill’s sponsors, by offering a credit for both younger and older apprentices alike, the bill “recognizes the importance of both attracting youth to high-growth fields like electrical contracting and also creating opportunities for those looking to re-enter the workforce or take a new direction with their career.”
Employers could take advantage of the tax credit for up to two years for each new apprentice with no limitation on the number of apprentices – however, it does not apply to those already employed with the company.
IEC strongly supports the LEAP Act and encourages members to take a moment to send a letter to their Senators asking for swift action on this bill. If you have already sent a letter, thank you for supporting this important tax credit.
For more information on the LEAP Act and how you can support IEC’s efforts on this bill, please contact Alexis Moch, Vice President of Government Affairs, at email@example.com.