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119-hr-8624119th CongressWALLET

WAGES Act of 2026

Sponsored By: Representative Moran, Nathaniel [R-TX-1]

Introduced

Summary

This bill would create a new, refundable payroll tax credit to subsidize employer-paid wages for registered apprentices and certain apprenticeship program expenses. It also updates tax treatment of apprenticeship awards to align them with program participation and prevent misclassification as wages.

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  • Employers would get a credit equal to 50 percent of qualified apprentice wages and registered program expenses, with the wage component capped at $5,000 per apprentice per quarter.
  • Apprentices would have qualified wages counted for up to a 2-year participation period and must be registered within the first 90 days of probationary employment to qualify.
  • The credit would be refundable if it exceeds employment taxes, includes a $10,000 per-quarter cap on mentor wages, prevents double claiming with other federal programs like WIOA, and excludes federal, state, and local governments.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

More tax-free apprenticeship awards

If enacted, items an employer gives an employee for apprenticeship training would be treated as employee achievement awards in many cases. Awards given within the first 90 days of program participation would not qualify. The bill would raise the dollar limits for such apprenticeship-related awards to $1,500 for ordinary awards and up to $5,000 if paid through a qualified plan. These changes would apply to awards transferred after enactment.

Apprenticeship payroll tax credit for employers

If enacted, employers would be able to claim a refundable payroll tax credit equal to 50% of qualifying apprentice wages and registered apprenticeship program expenses each calendar quarter. Qualified wages would be capped at $5,000 per apprentice per quarter (so the wage-based credit per apprentice would be at most $2,500 per quarter). The program-expense amount taken into account per quarter would be the greater of $5,000 or the smaller of $2,500 per apprentice or $50,000; mentor pay over a base rate would count but be capped at $10,000 per mentor per quarter. The credit would be limited to the employer’s applicable employment taxes each quarter, with any excess treated as a refundable overpayment. Wages or expenses paid with WIOA or other federal funds could not be used, wages used for this credit could not be double-counted for other chapter 1 credits or deductions, employers could elect not to claim the credit, and Treasury and Labor would issue forms and guidance (including rules for third-party payors and possible penalty waivers for deposit failures). The credit would apply to calendar quarters beginning after enactment and wages for an apprentice would qualify only during a two-year participation window and after required registration rules are met.

Sponsors & CoSponsors

Sponsor

Moran, Nathaniel [R-TX-1]

TX • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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