WAGES Act of 2026

Key Points

• The WAGES Act would give employers a payroll tax credit equal to 50% of wages paid to apprentices in registered programs, up to $5,000 per apprentice per quarter. This directly lowers the cost of hiring and training new workers through apprenticeships.
• Employers can also claim a 50% credit on the costs of running their apprenticeship programs, including classroom instruction, on-the-job training, and extra pay for mentors. Program expenses are capped at the greater of $5,000 or $2,500 per apprentice (up to $50,000).
• The bill targets workforce shortages in industries like construction, manufacturing, healthcare, IT, energy, and the skilled trades. It aims to expand access to well-paying careers for people without a four-year college degree.
• To prevent double-dipping, employers cannot claim this credit if they already received federal grants (like Workforce Innovation and Opportunity Act funds) for the same wages or expenses. Most government employers are also excluded.
• Apprentices who receive tools, equipment, or other awards as part of their training would get new tax-free treatment. Items connected to the training curriculum are excluded from income up to $1,500 (or $5,000 under a qualified plan), making it cheaper for workers to get started.