New Jersey employers could get tax breaks for apprenticeships

In New Jersey, Assembly Member Bill Moen is proposing a tax credit program meant to push employers toward one clear outcome: train workers in a structured way, then hire them on full time. The bill would create a New Jersey Earn and Learn Program inside the Department of Labor and Workforce Development and tie it to apprenticeships and paid internships that lead to permanent employment.

What the program would cover

The proposal would treat apprenticeships and internships as more than short-term placements. An apprenticeship would mean supervised classroom and on-the-job training under a skilled worker, and it would have to be registered with the U.S. Department of Labor. An internship would have to be a paid, structured learning experience with practical training and wage-and-hour compliance.

The labor department would run the program with the Department of Education and the New Jersey Economic Development Authority. The commissioner, working with the Division of Taxation, would certify whether an employer and its placements qualify for the credit.

How the tax credits would work

Employers could claim a base credit for each eligible enrollee. The bill also sets out extra credits in some cases, including for smaller businesses, for employers who take on workers from underrepresented protected classes in a field, and for certain businesses owned by people from those protected classes.

Another extra credit would be available when an apprentice or intern moves into full-time work within a year after the training ends, is paid in line with similar workers, and stays on the job for a set period. The bill also says each enrollee would be limited to three years in the program, and the total value of credits a taxpayer could claim in a year would be capped.

The credits would apply against New Jersey business taxes, and the labor department would report each year on participation, permanent job placements, projected tax credits and the program’s overall workforce impact.