Two Arkansas laws provide tax incentives for a taxpayer who employs a youth apprentice in a program registered with the U.S. Department of Labor/Bureau of Apprenticeship and Training (USDOL/BAT) and/or in a program approved by the Arkansas Department of Workforce Education/Apprenticeship Office. These two laws are codified at A.C.A. 6-50-501 to 6-50-505 and A.C.A. 26-51-1601 to 26-51-1606. A credit in the amount of $2,000 or 10 percent of the wages earned by the youth apprentice, whichever is less, shall be allowed against the tax imposed by the Arkansas Income Tax act. For each new student, the following must be submitted to the DWE at least 30 days prior to the date that the student begins work in an apprentice position for which the eligible employer may claim a tax credit: copy of the career focus program of study, copy of the structured work-based learning plan and Status of Apprentice Form.
Programs Not Registered with BAT
At the end of each tax year, the eligible employer submits form YA/WBL – Annual Wage Report, the apprentice's W-2 form, and a detailed schedule by pay period of wages to the Workforce Training Office before the tax credit may be claimed. Wages paid prior to approval of the program or after the end of the student's participation in the approved program shall not qualify for credit. Also, wages paid to an employee after he or she is disqualified pursuant to the terms of the approved apprenticeship program shall not qualify for credit.
Programs Registered with BAT
To receive tax credit information for students age 17-21 who are participating in programs registered with BAT, employers should contact