The WAGES Act of 2026 creates a new tax credit to encourage employers to hire and train apprentices through registered apprenticeship programs, addressing workforce shortages in high-demand fields like construction, manufacturing, healthcare, and IT. Employers can claim a credit equal to 50 percent of qualified apprentice wages (capped at $5,000 per apprentice per quarter) plus program expenses (capped between $5,000 and $50,000 per quarter) for the first two years of apprenticeship, with credits in excess of tax liability refundable as tax overpayments. The bill also allows employers to provide tax-free awards up to $1,500 to apprentices as part of their training and increases the limit for qualified plan apprenticeship awards to $5,000. To prevent misuse, the law extends IRS audit periods to six years for credit claims, prohibits employers from claiming both the credit and wage deductions for the same expenses, and bars employers receiving other federal workforce funding from using the credit. The tax credit becomes effective in the calendar quarter after the bill becomes law, with administrative guidance from the Treasury and Labor Departments to help employers and payroll processors understand and access the new incentive.