Tax Credit for Apprenticeship Sponsors
What is the Montana Apprenticeship Tax Credit?
This state tax credit provides financial incentive for employers that launch new, or expand their current training programs through the Montana Registered Apprenticeship unit at the Montana Department of Labor & Industry.
- $750 tax credit for each new apprentice, or;
- $1,500 tax credit for each new apprentice that is a veteran;
- Tax credit takes effect for 2023 tax year;
- Tax credit takes effect once apprentice has completed probationary period or after 6 months, whichever is earlier;
- The tax credit may be applied for each qualified apprentice’s training program for length of training program or up to five years.
To learn more about the Montana Apprenticeship Tax Credit or to launch or expand your own registered apprenticeship program please contact us.
What is Trades Education and Training Tax Credit?
Employers are now able to take advantage of a tax credit for expenses incurred to provide apprentices with education and training for a trade profession.
For tax years beginning after December 31, 2020, employers with qualifying education and training expenses for a trade profession may claim this credit. These credits can not be claimed if the money used to pay for the education or training was derived from a grant or similar program designed for education and training purposes.
Qualifications:
Qualifying expenses must be for employees who work or are anticipated to work in Montana for at least 6 months of the year of the education and training.
Qualifying expenses are paid by the employer to a third party, unrelated entity for tuition, fees, books supplies or equipment to assist an employee in developing additional techniques and skills in a trade profession.
Qualified Trades:
Qualified Training Methods:
- Classroom education or training
- On-site education or training, and
- Online education or training.
Benefit:
The credit is equal to 50% of the cost of qualifying trades education or training expenses incurred during the tax year, not to exceed $2,000 per employee and $25,000 total annually.
Trades Education and Training Tax Credit Form
Contact the Montana Registered Apprenticeship
