This bill establishes a federal tax credit for employers who invest in registered apprenticeship programs for infrastructure-related occupations, offering up to a $6,000 credit per qualified apprentice through 2035, subject to a $5 billion cap.
Jake Ellzey
Representative
TX-6
The Apprenticeship Infrastructure Tax Credit Act of 2025 establishes a new federal tax credit for employers who hire and train W-2 employees in registered apprenticeship programs focused on infrastructure-related occupations. Employers can claim a credit of \$3,000 or \$6,000 per eligible apprentice for up to two years, provided the program requires substantial on-the-job training hours. This incentive is subject to an overall spending cap of \$5 billion in claimed credits.
New Tax Credit Offers $6,000 Incentive to Hire Veteran Apprentices for Infrastructure Jobs
The Apprenticeship Infrastructure Tax Credit Act of 2025 creates a brand-new federal tax break for businesses that invest in formal apprenticeship programs for infrastructure-related jobs, starting in 2026. This is a direct financial incentive designed to boost the skilled workforce in construction, maintenance, production, and even IT. The core idea is simple: hire and train, and the government helps foot the bill, offering either $3,000 per standard apprentice or a boosted $6,000 if that apprentice is a recently separated veteran, National Guard member, Reservist, or military spouse.
The Fine Print: W-2s, 3,000 Hours, and the Cap
This isn't a handout for short-term training. To qualify for the credit, the apprenticeship program must be a "qualified registered apprenticeship program" and require a minimum of 3,000 on-the-job learning hours. That’s a significant commitment, meaning this credit is aimed squarely at businesses building long-term, highly skilled tradespeople. Critically, the apprentice must be a W-2 employee, not a 1099 contractor. If you’re a business owner who currently uses contractors for training, you’ll need to shift them to employee status to claim this benefit, which adds payroll taxes and overhead but also provides stability to the worker.
Paperwork and the $5 Billion Countdown
For employers, the biggest challenge might be the administrative hurdle. You can’t just claim the credit; you need an "apprenticeship tax credit eligibility certificate" issued by the Secretary of Labor every quarter. This process relies on program sponsors keeping the Department of Labor’s RAPIDS database updated within 30 days of any change. For busy small businesses, this adds a layer of compliance and paperwork that could be a significant barrier to entry, even with the promise of a tax break.
This entire program has a hard limit: once the total amount of credits claimed reaches $5 billion, the program shuts down for new apprentices. The Treasury Secretary will track this and can even slow down the issuing of certificates if the balance drops below $1 billion. What this means for the average business is that this incentive isn't guaranteed forever; it’s a race to the cap. If your business plans to rely on this credit for workforce development five years down the road, the money might already be gone, forcing long-term planning to be done under a ticking clock.