If you’ve ever wondered who’s building the next bridge, school, or hospital in your community,…
Strengthening Our Workforce: The Kansas Apprenticeship Tax Credit
Do you employ apprentices? If so, I’ve got some fantastic new for you that’s bound to make your day! The state of Kansas has rolled out an exciting initiative – the Kansas Apprenticeship Grant and Tax Act – designed to support organizations who are committed to nurturing talent through apprenticeship programs.
So, what exactly does this mean for you and your business? Let’s break it down:
THE MONEY
- A total of $13 million/per year will be allocated to companies that employ apprentices.
- of this, $7.5 million is allotted for Kansas taxpaying companies (for-profits)
- Companies can claim up to 20 eligible apprentices/year
- Each eligible apprentice = $2,500 in tax credits
Let’s do the math… if you claim 20 apprentices x $2,500 tax credits = $50,000 tax break!
THE ELIGIBILITY
- Apprentice must be part of a registered apprenticeship program
- Apprentice must be a Kansas resident
- Company/contractor must be a Kansas taxpaying organization
- Apprentice must have a signed ETA-671 (Apprentice Agreement)
- If your students are ABC HOA apprentices, the ABC team can provide you with a copy of your students ETA 671 form(s)
- Apprentice has surpassed their ‘probationary period’
- The company/organization who employed the apprentice on the 2023 expiration date of their probationary period OR the 2023 anniversary date of the probationary expiration date can claim
Nope. Not about who employed the apprentice the longest in 2023 or who employed them at the end of 2023. It’s specific to that probationary period expiration date. For ABC’s four-year apprenticeship programs, the probationary period is one year.
THE STEPS TO CLAIM TAX CREDIT
- Complete KS Apprenticeship Act – Tax Credit Application form. This needs to be filled out by the company/taxpayer that plans to claim the credits. This form is automatically submitted to the Kansas Office of Apprenticeship.
- Kansas Office of Registered Apprenticeship (KOA) will review and send a ‘Tax Credit Confirmation’ Certificate back to the company to confirm eligibility and the tax credit amount.
- The company/taxpayer fills out schedule K-24.
- The Tax Credit Confirmation Certificate and schedule K-24 Form must be submitted with the Kansas Tax Return to the Kansas Department of Revenue.
THE WHY
- Apprenticeship is one of the most effective ways we can build the Kansas skilled workforce
- Supports Kansas businesses to hire and maintain apprenticeship programs that meet their needs
- Apprenticeship prepares Kansas to fill the high-demand, high-wage jobs
- Aids Kansas in achieving the goal of being a top 25 apprenticeship state by 2025
The Kansas Apprenticeship Tax Credit Act is first come, first served until the funds expire. The application for these tax credits is EASY – apply today!
For questions or more information reach out to Jaci, Partnership Manager for the Kansas Office of Registered Apprenticeship.
Jaci Kolm
Partnership Manager
Kansas Office of Apprenticeship
(785) 250-3850
ksapprenticeship.org