Texas has enacted a pilot program to provide a sales and use tax credit for businesses that employ apprentices.
More information on the Texas Sales and Use Tax: Sales Tax Incentive for Employing Apprentices Offered
Apprentice Sales Tax Incentive
A $2,500 sales tax refund is available for each apprentice hired from a qualified apprenticeship program.
However, the refund is limited to:
- 5 consecutive taxable years; and
- 6 apprentices per entity if certain qualifications are met; otherwise 1 apprentice.
- Up to 100 eligible apprentice applicants will be certified by the state at any one time.
If more applicants apply, a merit-based system will be used and preference will be given to applicants who offer qualified apprenticeships in areas not designated as metropolitan areas; and provide training and skills development in emerging or developing occupational fields.
Only apprentices first employed on or after January 1, 2022, are eligible.
The pilot program is set to expire December 31, 2026.
S.B. 1524, Laws 2020, effective January 1, 2022
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To learn more about whether you qualify, how to become certified and what your potential benefit might be, contact your trusted resource, Ashmore Consulting.
The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ashmore Consulting LLC to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader’s specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact Ashmore Consulting LLC or other tax professional prior to taking any action based upon this information. Ashmore Consulting LLC assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.
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