The WAGES Act of 2026 creates financial incentives to expand registered apprenticeship programs in high-demand industries like construction, manufacturing, healthcare, and information technology. The bill establishes a 50% employment tax credit for employers who hire and train qualified apprentices, allowing businesses to claim up to $5,000 per apprentice in qualified wages per quarter plus apprenticeship program expenses ranging from $5,000 to $50,000 per quarter, with the credit being refundable if it exceeds employment taxes owed. The legislation also permits employers to give tax-free awards up to $1,500 (or $5,000 for qualified plan awards) to apprentices as part of their training programs. These provisions take effect for wages paid and expenses incurred after the bill's enactment, and include administrative measures such as extending IRS assessment periods to six years and waiving penalties for late employment tax deposits when employers reasonably anticipated claiming the credit. The bill aims to address workforce shortages while promoting economic mobility for workers pursuing careers without four-year degrees.
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