Maryland Registered Apprenticeship Tax Credit

The Maryland Apprenticeship Tax Credit is a tax credit given to Registered Apprenticeship Sponsors and/or employers who employ an eligible Registered Apprentice(s).  The credit is worth up to $1,000 per each eligible Registered Apprentice.

As with any credit Maryland provides, there are always limitations. The credit may only be taken against the state income tax the first year of the Registered Apprentice’s employment. The Registered Apprentice must also have worked for the Employer for a minimum of seven full months starting on or after January 1, 2017.  There is no limit on how many Registered Apprentices can be claimed for each taxable year provided they meet the eligibility criteria.  The credit may be carried forward if the tax credit exceeds the amount of state income tax.

The Maryland Department of Labor, Licensing, and Regulation (DLLR) is limited to granting $500,000 for this credit per taxable year.  The credits are provided on a first-come, first-serve basis.

Apprenticeship Sponsor (How To)

To be eligible for the Maryland Registered Apprenticeship Tax Credit, you must be an Apprenticeship Sponsor.  If you are interested in becoming an Apprenticeship Sponsor, see the link below.

https://www.dllr.state.md.us/employment/appr/apprbecomesponsor.shtml

How to Apply / Claim Credit

After being registered as an Apprenticeship Sponsor and hiring a Registered Apprentice(s), the eligible Employer must apply directly to DLLR for the credit.  When approved, the Employer will receive a tax credit certification from the DLLR.  The Employer will use the approved credit amount when filing their tax return with the Comptroller of Maryland for the year the certification was issued.  The certification must also be attached to the tax return.

For more detailed instructions, please go to the DLLR website below.

https://www.dllr.state.md.us/employment/appr/apprtaxcreditinfo.shtml

 

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