U.S. Rep. Tom Reed (R-NY) announced the reintroduction of legislation on Thursday that would establish a new tax credit designed to encourage employers to offer apprenticeships.
Employers could receive tax credits for hiring new apprentices who are registered with the Department of Labor or a state agency under the Leveraging and Energizing America’s Apprentice Programs (LEAP) Act.
“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.”
Employers would receive a tax credit of $1,500 for hiring new apprentices under age 25, and a $1,000 tax credit for hiring apprentices older than 25, under the LEAP Act, which Reed introduced with bipartisan support from U.S. Rep. Linda Sanchez (D-CA).
“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.”
There are currently 9 million unemployed Americans and 5 million vacant positions because employers have struggled to find qualified candidates. The LEAP Act aims to help employers in manufacturing, health care, information technology and skilled trades cultivate qualified workforces.