New Jersey Apprenticeship Tax Credits and Employer Incentives Explained

Up to 50% of a new apprentice's hourly wage for up to 52 weeks, plus support for classroom instruction (RTI) and program start-up costs.

Wage support up to 50% of wage, capped at $12,000 per apprentice and 40 hours a week. Proposals should average no more than $12,000 per person served. Round 1 pool: $6,000,000.

The grantee: an employer, sponsor, association, school or other eligible entity running a Registered Apprenticeship program. Awards are paid by cost reimbursement.

• Employer based in New Jersey or with a New Jersey presence, or another listed entity such as a trade association, union or college
• New or expanding program registered with the U.S. Department of Labor
• Apprentices must be New Jersey residents, full-time, and paid at least $18.00 an hour at hire (exceptions need a written justification)
• Apprentices must be registered after the contract period starts; apprentices cannot be charged fees
• Front-loaded classroom instruction before employment is not allowed

A credit of up to $5,000 of qualified start-up costs in the first year of a registered apprenticeship program, and up to $10,000 if the program is in a key industry such as manufacturing, construction, healthcare, logistics, pharmaceuticals, transportation, tourism or renewable energy.

$5,000, or $10,000 for key industries. No carryforward, so the credit can only reduce tax in the year allowed. The law caps all approved credits statewide at $1,000,000 per fiscal year, so approval can wait for the next year.

The employer, as a credit against New Jersey Corporation Business Tax. No cash is paid out.

• New Jersey taxpayer that sponsors a program registered with the U.S. Department of Labor
• At least one apprentice enrolled before you seek approval
• Documented start-up costs from the first year of the program, including salaries of staff working on it
• Costs already used for another credit or incentive do not count

The same OJT reimbursement, typically up to 50% of wages, for WIOA-eligible apprentices.

Typically up to 50%, state guide of $10,000 per participant over six months.

The sponsor employer, as wage reimbursement through the local board.

• Apprentice is WIOA eligible and enrolled with the board
• Employer meets the standard OJT tax and referral rules

Prepared candidates for your registered program. No cash to you.

FY2027 Round 1 pool: $3,000,000, paid to providers.

A pre-apprenticeship provider. You are the Registered Apprenticeship sponsor partner that commits to hire its graduates.

• Provider has a documented partnership with at least one Registered Apprenticeship sponsor
• Sponsor commits to hiring from the program within 18 months of the contract start