From our friends at Maryland Department of Labor, Licensing, and Regulation: the Maryland Registered Apprenticeship Tax Credit. IEC Chesapeake wants you to “know before you go!”
The Maryland Apprenticeship Tax Credit provides a State income tax credit to Registered Apprenticeship Sponsors or participating employers (Employer) which hire an eligible Registered Apprentice(s). The Employer may qualify for a $1,000 tax credit for each eligible Registered Apprentice.
To be eligible to apply for this tax credit program, the following two conditions must be in place:
- The Employer must be a Registered Apprenticeship Sponsor and/or participating employer in a Registered Apprenticeship Program. Registered Apprenticeship means the Apprenticeship and Apprentice(s) are registered with the State of Maryland and have been approved by the Maryland Apprenticeship and Training Council. For more information about the Maryland Apprenticeship and Training Program, please visit the website; and
- The Registered Apprentice(s) must be enrolled in an apprenticeship training program registered with the Maryland Apprenticeship and Training Council and have been employed by the taxpayer for at least seven full months of the taxable year.
- A credit may only be taken against the State income tax for the first year of employment for an eligible Registered Apprentice.
- There is no limit on the number of Registered Apprentices that can be claimed for each taxable year provided all eligibility criteria have been met.
- If tax credits exceed the amount of income tax liability, unused credits may be carried forward for succeeding taxable years until fully used.
- The total amount of tax credits available to be approved by the Maryland Department of Labor is limited to $500,000 for any give taxable year. Tax credits will be certified on a first come, first-serve basis, based on the availability of credits.
HOW TO APPLY
- Any employer which wishes to claim this tax credit must have registered and been approved by the Maryland Apprenticeship and Training Council prior to applying for tax credit certification.
- To be certified for the tax credit, an eligible Employer must apply directly to the Maryland Department of Labor. Applications (Forms A and B) for the tax credit can be found on the website.
- The completed application must be sent via mail or in a password protected /encrypted file email “
If you are considering adding apprentices to your busy electrical company, this credit is something you should be aware of…
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Business Development, IEC Chesapeake/IECC