Tennessee Apprenticeship Tax Credits and Employer Incentives Explained

Reimbursement of allowable apprenticeship costs for eligible apprentices, paid after you document and pay them.

Up to $2,500 for each first or second year apprentice and up to $1,500 for each third or fourth year apprentice who has not used two years of funding. Allowable costs: wages, textbooks, tuition for related instruction, and items such as PPE and tools. Figures are from the Northern Middle Tennessee board guidance dated Nov. 1, 2023 and match the state Comptroller's 2024 report. Other boards may set their own terms.

The employer or program sponsor, by reimbursement of allowable costs.

• Program must be federally registered and approved by Tennessee as the State Apprenticeship Agency
• Tennessee for-profit business (or not-for-profit healthcare), current on state and federal taxes, no bankruptcy in the last 12 months
• Apprentice must be in year one to four of training; two funded years maximum
• Some boards also fund on-the-job training for dislocated workers entering an apprenticeship, and classroom training in pre-apprenticeship

A regional director helps you understand the model, write standards, and submit registration paperwork. The state page also lists a training subsidy and pay scale guidance, with no amounts.

Free. No dollar figure is published for the subsidy mentioned on the benefits page.

In-kind help to the employer. No cash is paid.

• Any Tennessee employer interested in a registered apprenticeship program