Official Site of The State of New JerseyApprenticeship Tax Credit
P.L. 2019, Chapter 417, effective January 21, 2020, created the Apprenticeship Start-Up Grant Program administered by the Office of Customized Training (falling under the umbrella of the Office of Apprenticeship and Work Based Learning) in the New Jersey Department of Labor and Workforce Development (NJDOL).
As part of the program, a taxpayer may apply for, and, upon approval of an application to the Department of Labor and the Division of Taxation, be allowed a $5,000 tax credit against the tax imposed pursuant to N.J.S.A. 54:10A-5(c), if the taxpayer has documented qualified start-up costs associated with the initial year of participation in an apprenticeship program.
There is an additional $5,000 tax credit if the apprenticeship program provides opportunities for workers in key industries, such as:
- Manufacturing
- Construction
- Healthcare
- Logistics
- Pharmaceuticals
- Transportation
- Tourism and
- Renewable energy.
Click here to apply to participate in this tax credit program.
Once you've received approval from NJDOL, complete and submit the Form 330 Apprenticeship Program Tax Credit.
To participate in the program, an applicant must be a New Jersey taxpayer that is a Registered Apprenticeship Sponsor participating in an apprenticeship program registered by the Office of Apprenticeship of the U.S. Department of Labor and meeting the standards established by that office. NJDOL requires that a minimum of one apprentice be enrolled in the program prior to seeking approval for the tax credit.
“Qualified start-up costs” are the ordinary and necessary costs to start an apprenticeship program in an occupation or industry that makes or could make an important contribution to the economy of the State, including the salary costs of employees working on the program and, if applicable, the non-recurring costs of fixed telecommunications furnishings and office equipment.
This application is for taxpayers in the State of New Jersey who are seeking approval of qualified start-up costs associated with the initial year of participation in an approved registered apprenticeship (“RA”) program, pursuant to the New Jersey Tax Credit for Apprenticeship Start-Up Grant Program, P.L. 2019, Chapter 417, effective January 21, 2020. See N.J.S.A. 54: 10A-5.44 for more information.
Once you've received approval from NJDOL, complete and submit the Form 330 Apprenticeship Program Tax Credit.
Contact apprenticeships@dol.nj.gov with the subject line "Tax Credit Application-Apprenticeship Program" with any questions.
Established apprenticeship programs have been shown to reduce turnover rates, increase productivity, lower the cost of recruitment, and increase safety in the workplace.
