What does Preamble of WAGES Act of 2026 do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment would establish a credit against employer payroll taxes. The credit is intended for wages and other expenses related to apprenticeship programs.

What does SHORT TITLE. of WAGES Act of 2026 do?

This bill is formally titled the Workforce Apprenticeship Growth and Education Support Act.

What does FINDINGS. of WAGES Act of 2026 do?

This section outlines findings related to apprenticeships and workforce development. Apprenticeships are identified as a means to address workforce shortages in various industries, including construction, healthcare, and information technology. A skilled workforce is considered essential for maintaining U.S. economic competitiveness globally. Registered apprenticeship programs combine paid on-the-job training with related instruction and provide industry-recognized credentials. Employers investing in these programs may experience benefits like improved productivity but often face associated costs. The National Apprenticeship Act of 1937 established a framework for registered apprenticeship programs. Expanding employer participation in registered apprenticeship programs is seen as a way to promote economic mobility.

What does APPRENTICESHIP CREDIT. of WAGES Act of 2026 do?

This section establishes a new credit, Section 3135, under the Internal Revenue Code. The apprenticeship credit is available to eligible employers for each calendar quarter. The credit amount is 50 percent of the sum of qualified wages and registered apprenticeship program expenses. Qualified wages are limited to $5,000 per qualified apprentice per quarter. Registered apprenticeship program expenses are limited to the greater of $5,000 or $2,500 per qualified apprentice (up to $50,000 total). The credit cannot exceed applicable employment taxes. If the credit exceeds the employment tax limitation, the excess is refundable. An 'eligible employer' either maintains a registered apprenticeship program or has a written agreement adhering to apprenticeship standards. The credit applies to wages paid while a qualified apprentice participates in a registered apprenticeship program, but not after two years. The amendments apply to wages paid and expenses incurred for calendar quarters beginning after the date of enactment.

What does TAX TREATMENT OF APPRENTICESHIP AWARDS. of WAGES Act of 2026 do?

This section amends Section 274(j) of the Internal Revenue Code of 1986 to modify the tax treatment of apprenticeship awards. It redefines the criteria for employee achievement awards, specifically including awards given to employees participating in registered apprenticeship programs as part of their training. The definition of 'registered apprenticeship program' is clarified by referencing Section 3135(c)(6). Awards received within the first 90 days of participation in a registered apprenticeship program are excluded from being treated as part of the program's training and curriculum. The limitation for employee achievement awards is increased to $1,500 for awards described in paragraph (3)(A)(i)(I)(bb) and $5,000 for qualified plan awards. These amendments apply to awards transferred after the date of enactment of this Act.

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WAGES Act of 2026

Last updated: 4/30/2026 · Introduced: 4/30/2026

Author: Nathaniel Moran (R-TX)

TL;DR (AI)

This bill creates a new tax credit for employers who participate in registered apprenticeship programs, covering up to $5,000 in wages and $50,000 in program expenses per apprentice each quarter.
The bill modifies the tax treatment of apprenticeship awards, allowing for larger awards (up to $1,500 or $5,000) to be excluded from taxable income for employees participating in registered apprenticeship programs.
Eligible employers can receive a refundable tax credit if the apprenticeship credit exceeds their applicable employment taxes.

119th Congressin committeeS. 4463(In Committee)Official page

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Includes provisions on preamble, short title., and 3 more.

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