Opportunity: Apprenticeships offer significant benefits to local workers and businesses. They empower students to develop valuable on-the-job skills while still bringing home a paycheck, and they help employers and industry clusters meet the demand for trained workers. These benefits reverberate up to the state level: Apprenticeship programs can produce more than $27 in tax returns for every $1 invested by the state over the career of an apprentice.
Solution: State leaders could leverage an apprenticeship tax credit to encourage employer involvement.
Example: South Carolina’s Apprenticeship Carolina program offers employers a modest $1,000 state tax credit per apprentice per year to help offset planning and administration costs. In order to count towards the credit, an apprentice must be employed for at least seven months each year of their program, for up to four years. In addition to the tax credit, administrative assistance from the state’s Apprenticeship Consultants helps to increase program uptake by providing dedicated experts who work with businesses interested in establishing apprenticeships in the state. The system has served over 26,000 apprentices.