U.S. Senator Todd Young (R-Ind.) and U.S. Representative Nathaniel Moran (R-TX-01) joined 535 News to discuss their bill, the Workforce Apprenticeship Growth and Education Support (WAGES) Act. The legislation would create a refundable payroll tax credit for employers who maintain or participate in a Registered Apprenticeship Program (RAP). The tax credit would offset the cost of wages paid to apprentices and mentors, as well as the cost of other program expenses.
Full video of the interview is available here.
“Apprenticeships equip individuals with sustainable skills to advance their careers and offer employers job-ready workers, but too many businesses still face barriers to launching or scaling these programs. At a time when high-demand industries are struggling to fill open positions, our bill will make it easier for businesses to invest in high-quality apprenticeship programs, strengthening our workforce and expanding pathways to good-paying careers. This is an important step in ensuring Americans are prepared for the jobs of today and tomorrow,” said Senator Young.
Under the WAGES Act, eligible employers would be required to:
- Maintain a RAP or participate in one through written agreements, like collective bargaining agreements (CBAs);
- Employ at least one qualified apprentice during the calendar quarter; and
- Not have received federal payments for the same qualifying wages/expenses.
Covered program expenses would include:
- Related technical instruction (classroom, distance learning, or other approved format);
- On-the-job learning costs and supervision reimbursement;
- Mentor wages — the amount paid above a journeyworker’s base rate while mentoring an apprentice (capped at $10,000/quarter per mentor);
- Program development, registration, and maintenance costs; and
- CBA contributions to registered apprenticeship sponsors.
Additional statements of support can be found here.
A summary of the WAGES Act can be found here. Full legislative text can be found here.
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