Maryland Tax Credit for Eligible Apprentices - Maryland Apprenticeship and Training Program (MATP)

What is it?

The Tax Credit for Eligible Apprentices provides a state tax credit to Maryland businesses which employ eligible Apprentices. Employers seeking the credit must submit an application to the Maryland Department of Labor and receive a certification for the amount of credit they are eligible to claim. The certification must be attached on the taxpayer’s Maryland State tax return. This credit is authorized under Maryland Code Ann., Tax-General, §10-742 and additional information can be found in the Code of Maryland Regulations 09.37.04.00 - 09.37.04.999.

Who can apply for the credit?

This credit can be requested by any Maryland taxpayer that is a Registered Apprenticeship Sponsor and/or a participating/signatory employer in a Registered Apprenticeship or Youth Apprenticeship Program. Both the Program and Apprentice(s) claimed must be registered with the State of Maryland and approved by the Maryland Apprenticeship Training Council in accordance with Maryland Code Ann., Labor and Employment, §11-405 or the Youth Apprenticeship policies.

For more information regarding Registered Apprenticeship and Youth Apprenticeship Programs in Maryland visit the Maryland Apprenticeship and Training Program (MATP) website.

Who is an eligible Apprentice under this credit?

Apprentices who are eligible to be claimed under this credit are in the first year of their employment with the taxpayer and are:

1. Youth Apprentices who have been employed by the taxpayer for at least 450 hours in the taxable year, and
2. Registered Apprentices who have been employed by the taxpayer for at least 7 months of the tax year.

How much can an employer receive under this credit?

For the first five eligible Apprentices claimed, Taxpayers may receive $3,000 per Registered Apprentice and $1,000 per Youth Apprentice. Taxpayers may receive $1,000 per eligible Registered Apprentice for all others claimed in excess of the first five. A maximum of $15,000 in credits can be claimed per year per taxpayer.

The amount certified cannot exceed the tax imposed on a taxpayer for the taxable year in which the credit is claimed. Any credit amount in excess of a taxpayer's tax liability can be carried forward to succeeding taxable years until the full amount of the credit is used.

How to Apply

Complete all parts of the Tax Credit for Eligible Apprentices - Application for Certification.

Submit the completed application

A response will be issued within 45 days of receipt. Accepted applications will receive a certification from MD Labor stating the amount of the credit approved for the taxable year. This certification must be attached on the employer’s Maryland State tax return.

Where to go for more information

Chris MacLarion, Director

Maryland Apprenticeship and Training Program (MATP)

For additional information, contact:
Division of Workforce Development and Adult Learning
Maryland Apprenticeship and Training Program
1100 N. Eutaw Street, Room 209
Baltimore, MD 21201
Phone: 410-767-2246
Fax: 410-333-5162
E-mail: info@mdapprenticeship.com