ABOUT THE PROGRAM

  • An employer is allowed up to a $1000 income tax credit for each qualifying apprentice
  • An employer can claim a tax credit for up to five (5) apprentices annually, not to exceed $5,000
  • The credit can be applied against any income tax or financial institution excise tax imposed under Chapters 16 or 18 of Title 40
  • The income tax credit is not refundable, none transferable, and cannot be carried forward
  • The credit cannot be claimed for an individual apprentice for more than four taxable years, regardless of employer. If applicable, Apprenticeship Alabama can verify previous credit with another employer

ELIGIBILITY FOR THE TAX CREDIT

The Employer Must:

  • Add apprentices on or after January 1, 2017
  • Submit all required paperwork to the Alabama Department of Commerce, Apprenticeship Alabama division on or before May 31st of the taxable year
  • Have a written employer apprenticeship agreement with the USDOL Office of Apprenticeship
  • Submit a copy of USDOL Program Registration and Apprenticeship Agreement (appendix B) for each registered apprentice
  • Verify the apprentice was employed with at least seven (7) full months of the prior year
  • Receive “Apprenticeship Tax Credit Certificate” from Apprenticeship Alabama confirming that the apprentice is in compliance with all federal and state requirements for the program

If you are interested in filing for eligibility, please complete the AA Tax Credit Program Intent Form and send to:

Frank Chestnut
Apprenticeship Alabama Manager
Alabama Department of Commerce
1 Technology Court Montgomery, AL 36116
Email: fchestnut@aidt.edu

AA Tax Credit Program Intent Form (click to download)