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Illinois Apprenticeship Tax Credits and Employer Incentives Explained

Illinois pays employers for registered apprenticeships mainly through a tax credit: $3,500 per apprentice for tuition, book and lab fees, plus $1,500 more in underserved areas. DCEO caps total credits at $5 million a year, first come, first served, and the 2026 legislature extended the credit to January 1, 2032. Your local workforce board can also use WIOA on-the-job training funds for the on-the-job part of a registered apprenticeship, and a local Apprenticeship Specialist helps you register the program. Illinois Works pre-apprenticeship grants go to nonprofits, not employers.

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  • State pre-filled: IL
  • Program type pre-filled: apprenticeship_grant
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HOW IT WORKS

Four steps, in this order.

  1. 1

    Register your apprenticeship with USDOL (an Apprenticeship Specialist can help)

  2. 2

    Pay tuition, book and lab fees and keep invoices and proof of payment

  3. 3

    Apply to DCEO for a tax credit certificate

  4. 4

    File the certificate with your Illinois return

3 VERIFIED PROGRAMS

Where the Illinois money comes from.

Run by Illinois DCEO (tax credit), Apprenticeship Illinois and local workforce boards. Every figure is from an official page, linked on each card.

Illinois Apprenticeship Education Expense Tax Credit

$3,500 per apprentice, +$1,500 in underserved areas
OPEN, FIRST COME FIRST SERVED
WHAT YOU GET

A tax credit for tuition, book fees and lab fees you pay for each qualifying apprentice. It does not cover apprentice wages.

HOW MUCH

$3,500 per apprentice per year. Add $1,500 per apprentice if the apprentice lives in, or your principal place of business is in, an underserved area. DCEO may issue no more than $5 million in credits a year.

WHO RECEIVES THE MONEY

Your company, as a credit against Illinois income tax. DCEO certifies your expenses first.

WHO QUALIFIES
  • Apprentice is an Illinois resident, at least 16, and enrolled full-time in a USDOL registered apprenticeship during the school year
  • You are an Illinois taxpayer who employs the apprentice in Illinois
  • You sponsor, or partner with, a full-time USDOL registered apprenticeship program
  • Credit is earned and used in the current year, with no carryforward
Before you start: No pre-approval of the apprentice, but DCEO must certify your expenses before you claim the credit. A training organization that is not a college, a registered sponsor or a training provider needs DCEO approval first.
HOW TO APPLY
  1. 1Email the program manager at CEO.ApprenticeshipCredit@illinois.gov
  2. 2Track tuition, book and lab expenses through the tax year
  3. 3Submit the DCEO application with invoices, proof of payment, your Standards of Apprenticeship and ETA-671 forms
  4. 4File the DCEO certificate with your Illinois Department of Revenue return

Deadlines and windows: Ongoing. Credits are first come, first served up to $5 million a year. The statute now runs to January 1, 2032.

SOURCE: DCEO.ILLINOIS.GOV

WIOA On-the-Job Training used with a registered apprenticeship

Wage reimbursement for apprentice on-the-job hours
THROUGH YOUR LOCAL BOARD
WHAT YOU GET

Wage reimbursement for the on-the-job hours of an eligible apprentice. Classroom training can be paid separately through an Individual Training Account.

HOW MUCH

Typically up to 50% of wages, up to 75% in documented cases, and up to 90% for employers with 50 or fewer employees under a state waiver through June 30, 2028. Boards may set a duration or dollar limit for apprenticeships.

WHO RECEIVES THE MONEY

Your company, by contract with the local workforce board.

WHO QUALIFIES
  • The apprentice must be WIOA eligible and approved by the local board
  • You operate a registered apprenticeship program
  • Only the on-the-job hours are reimbursed, not classroom time
Before you start: Yes. The OJT contract must be signed before the person starts.
HOW TO APPLY
  1. 1Ask your local board about OJT for apprentices
  2. 2Sign the OJT contract and training outline
  3. 3Invoice the board for on-the-job hours

Deadlines and windows: Set by each local board's policy and funding.

SOURCE: APPS.ILLINOISWORKNET.COM

Local Apprenticeship Specialist (help, not cash)

Help designing and registering a program
ONGOING SERVICE
WHAT YOU GET

Hands-on help to design a program, find training providers and register it with the U.S. Department of Labor.

HOW MUCH

No dollar amount published.

WHO RECEIVES THE MONEY

No money goes to you. It is a state-funded service run through local workforce areas.

WHO QUALIFIES
  • Any Illinois employer interested in a registered apprenticeship
Before you start: None.
HOW TO APPLY
  1. 1Find your county on the Apprenticeship Illinois employer page
  2. 2Contact the listed Apprenticeship Specialist, or the state mentor if your county is not listed

Deadlines and windows: Ongoing. The PY26 funding round for specialists has closed, so check who covers your county.

SOURCE: ILLINOISWORKNET.COM
LOCAL BOARDS

Same program, different rules by board.

Chicago Cook Workforce Partnership

Pairs OJT and incumbent worker training funds with its apprenticeship work; its Apprenticeship Illinois Expansion work reached close to 100 businesses in a recent program year.

SOURCE: CHICOOKWORKS.ORG
AVOID THESE

What gets Illinois Apprenticeship claims denied.

STRAIGHT ANSWERS

Illinois Apprenticeship questions.

How much is the Illinois apprenticeship tax credit?

$3,500 per qualifying apprentice per year for education expenses, plus $1,500 if the apprentice lives in an underserved area or your principal place of business is in one.

SOURCE: DCEO.ILLINOIS.GOV
Does the credit pay apprentice wages?

No. It covers tuition, book fees and lab fees only. Wage help comes from WIOA OJT through your local board, for the on-the-job hours.

SOURCE: DCEO.ILLINOIS.GOV
Is the credit still available?

Yes. DCEO says the General Assembly extended it to January 1, 2032, in 2026. Total credits are capped at $5 million a year.

SOURCE: DCEO.ILLINOIS.GOV
Do Illinois Works pre-apprenticeship grants go to employers?

No. They go to community-based organizations that recruit and train people for the building trades. Employers can hire from those programs.

SOURCE: DCEO.ILLINOIS.GOV

How we checked. Every fact on this page comes from a state agency, a local workforce board or federal regulation, read on . Where a board publishes nothing, we say so instead of guessing. Programs and funding change often; confirm with the program before you commit. Written by Jason Meehl, founder of Reimbursa. Found an error? Email hello@reimbursa.com.

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