U.S. Reps. Tom Reed (R-NY) and Linda Sanchez (D-CA) recently introduced legislation designed to increase apprenticeships through a new federal tax credit for employers.
The Leveraging and Energizing America’s Apprentice Programs (LEAP) Act would offer a federal tax credit for hiring new apprentices that are registered with the U.S. Department of Labor or a state apprenticeship agency. The tax credit for apprentices under 25 years old would be $1,500, while the tax credit for apprentices over 25 would be $100.
“We must work to help individuals get the training they need for the jobs of today and tomorrow,” Reed said. “This tax credit will serve to increase apprenticeships and get people the skills they need for good-paying jobs.”
Apprenticeship programs are an efficient way to ensure the needs of employers are matched with employee skills. Together, the U.S. Department of Labor Office of Apprenticeship and state apprenticeship agencies establish a set of standards necessary for completion and administer the programs nationwide.
Currently, there are nine million unemployed Americans, yet five million jobs remain unfilled as many companies struggle to find qualified workers to fill available jobs. Expanding apprenticeships would enhance employment opportunities in in-demand career fields such as manufacturing, healthcare, information technology, and skilled trades.
“For many years, we have worked to pass this legislation which would create an incentive for America’s small businesses to hire apprentices,” Sanchez said. “In today’s global economy, it is important to expand the pathways to success. This important legislation will enable young people in apprenticeship programs nationwide to benefit from secure, good-paying jobs.”