• Brass-Tacks
  • HB 1383: Apprenticeship Tax Credit

    HB 1383: Apprenticeship Tax Credit

    Strategies and creative approaches are in high demand to address the workforce challenges facing our state. GNDC likes seeing legislation aimed to work toward all industries. HB 1383 is a tax credit, fashioned after the internship tax credit, to deploy to qualified apprenticeships. While traditional apprenticeships are associated with the trades – this model has be expanded with programs created in manufacturing, aviation, healthcare, and IT. We like 1383 – this is a bill that uses an existing model in a broad brush fashion as a path toward filling a pipeline with training and retention as the focus.
    Basic rundown of HB 1383

    • Tax credit for 10% of the stipend or salary paid to a qualified apprentice
    • Limit of 5 apprentices per taxpayer at a time
    • Total credits may not exceed up to $3,000 

    Insider’s peek: Testimony on the bill
    "We support partnerships and resources that implement work-based learning opportunities to cultivate workforce attraction and retention. The ability to have access to a skilled workforce is a critical issue impacting the business community. We feel that the proposed tax credit would be a good step towards addressing the workforce challenge, benefiting both students and North Dakota businesses."

    Wayde Sick – Dept. of Career and Technical Education
    Apprenticeship is an effective solution, as it allows an employer to partner with a training provider and customize their training programming, to meet their specific needs. An employer is able to hire apprentices, place them under the supervision of a mentor for on the job training, while requiring coursework, nown as Related Technical Instruction in an apprenticeship program. Related Technical Instruction can be completed in the evenings, weekends, online, etc. Many times, the training provider is a community college, allowing an apprenticeship to complete an apprenticeship and a certificate or degree simultaneously. The earn while you learn model of an apprenticeship can be attractive as individuals are employed while they are gaining skills and attractive for employers as it can be an immediate workforce solution.
    Katherine Grindberg – FMWF Chamber
    Every state across the United States is competing to attract, develop, and retain workforce, hoping to fill thousands of open jobs. In order for our state to effectively compete on a global scale for workforce, both the public and private sectors must identify innovative and multi-pronged solutions to address this crisis. Creative solutions, such as this, incentivize the hiring of apprentices, establishing a career pathway for our current and future workforce.

    This bill has passed both chambers unanimously, even with a slight amendment in the Senate. It will head to conference committee and we expect it to be hitting the governor's desk easily.