Bill > S4463

This bill, known as the Workforce Apprenticeship Growth and Education Support Act or WAGES Act of 2026, aims to incentivize employers to invest in registered apprenticeship programs by providing a credit against their payroll taxes. Specifically, eligible employers can claim a credit equal to 50% of qualified wages paid to apprentices and certain program expenses, with limitations on the amounts of wages and expenses that can be claimed per apprentice and per quarter. This credit is refundable, meaning if it exceeds the employer's payroll tax liability, the excess will be refunded. The bill defines "eligible employer" as one who maintains or agrees to adhere to a registered apprenticeship program and employs a "qualified apprentice," who is an employee participating in such a program, with certain exclusions for highly compensated individuals. "Qualified wages" are wages paid for services rendered while in the program, up to two years, and can also include employer contributions to health plans for apprentices. "Registered apprenticeship program expenses" cover costs like related instruction, on-the-job training, mentor wages (with limitations), and program development. The bill also clarifies the tax treatment of apprenticeship awards, allowing certain awards given to apprentices to be treated as employee achievement awards, with increased limits on their value, and specifies that these awards must be related to the program's training and curriculum and not be disguised compensation. This credit applies to wages paid and expenses incurred for calendar quarters beginning after the bill's enactment.