Kansas Apprenticeship Act: Tax Credits and Grant Incentives for Workforce Development

Grant Overview

Unlock State-Sponsored Funding to Build a Skilled Kansas Workforce Through Registered Apprenticeships

Donor: Kansas Office of Registered Apprenticeship (Kansas Works), Kansas Department of Commerce, Kansas Department of Revenue

About: The Kansas Apprenticeship Act, officially known as HB 2292 and effective since July 1, 2023, marks a significant state-led initiative to enhance workforce capabilities through registered apprenticeships. With an annual fund of $13 million, this Act introduces a comprehensive suite of tax credits for businesses and grant incentives aimed at encouraging for-profit companies, non-profit organizations, and educational bodies to invest robustly in apprenticeship programs. The overarching goal is to cultivate a skilled labor pool, particularly in high-demand sectors, thereby bolstering the overall Kansas economy. For entities exploring such opportunities, Grantaura’s general grant guides can offer valuable insights into navigating the funding landscape.

This legislative Act strategically allocates resources across three main incentive streams: $7.5 million is designated for tax credits targeting for-profit businesses, $2.5 million in grants is available for non-profits and healthcare sector employers, and $3 million in grants is set aside for K-12 Education to foster teacher apprenticeships. This diversified approach ensures broad participation across various sectors, enabling them to benefit from developing skilled talent. Understanding the nuances of different grant categories can assist organizations in pinpointing the most appropriate funding avenues for their unique apprenticeship models and workforce needs.

For-Profit Business Tax Credits

For-profit enterprises operating in Kansas can significantly reduce their tax liabilities by leveraging credits for employing registered apprentices. Initially, employers were eligible for up to $2,500 per apprentice. This amount is set to increase to $2,750 per apprentice for tax years after December 31, 2025. These tax incentives can be claimed for a maximum of 20 apprentices annually per eligible employer, for a duration of up to four years for each apprentice. An additional incentive includes an extra $500 credit if the apprentice is part of a Perkins Eligible program, further promoting engagement in recognized Career and Technical Education (CTE) pathways. Businesses aiming to implement or expand such training programs may find Grantaura’s resources on funding for small businesses particularly beneficial for strategic financial planning.

Non-Profit Apprenticeship Grant Program

Eligible non-profit employers, including those within the vital healthcare sector, can apply for grants directly administered by the Kansas Department of Commerce. These grants offer up to $2,750 for each apprentice employed, with an annual cap of 20 such grants per eligible employer, and applicability for up to four years per apprentice. This program is specifically designed to empower community-focused non-profits in developing their internal workforce and thereby expanding their capacity to deliver essential services. Organizations in this sector can explore a variety of funding opportunities listed on Grantaura to augment their strategic initiatives.

Kansas Educator Registered Apprenticeship Grant Program

To proactively address the demand for qualified educators, this component of the Act authorizes the Department of Commerce to award grants supporting eligible Teacher Educator apprentices. These funds, amounting to a maximum of $2,750 per year for up to four years for each apprentice, are specifically allocated for covering apprentice tuition, mandatory fees, and the costs of books and essential materials. This initiative is geared towards increasing the cadre of credentialed teachers in Kansas by offering a financially supported and structured pathway into the teaching profession. Educational institutions can discover relevant opportunities and detailed guidance through Grantaura’s extensive database.

The Kansas Apprenticeship Act fundamentally underscores the immense value of combining practical on-the-job workforce training with pertinent related technical instruction. Through active participation in registered apprenticeship programs, employers not only gain dedicated and skilled employees whose training is tailored to their specific operational needs but also contribute to a stronger state economy. Simultaneously, apprentices benefit by earning a competitive wage as they learn, acquiring industry-recognized credentials, and establishing a clear and promising career trajectory. Navigating the application process for these state-backed incentives can often be intricate, and Grantaura provides informative articles and up-to-date resources to help clarify these pathways and simplify the application journey for interested parties.

Successfully securing these advantageous tax credits or grants necessitates meticulous adherence to all stipulated eligibility criteria and application procedures. This includes the timely submission of critical forms such as the ETA-671 (Registered Apprenticeship Agreement) and verifiable proof of apprentice employment and the successful completion of their probationary period. Grantaura’s team of expert grant writing consultants and comprehensive support services can significantly assist organizations in preparing robust, compelling applications and ensuring all stringent requirements are met. This professional support maximizes their prospects of receiving these valuable incentives. Whether your organization requires assistance with targeted grant research, document preparation, or full application management, Grantaura is fully equipped to help Kansas entities effectively leverage these vital workforce development opportunities and contribute to a thriving state economy.

Focus: Workforce development, Apprenticeship programs, Job training, Skills development, Tax incentives, Business grants, Non-profit funding, Educator training, Economic development, Career and Technical Education (CTE), On-the-job training

Region: Kansas, United States

Eligibility:
– General Requirements for All Programs:
— Employers must possess an established, verifiable Kansas address.
— Apprenticeship programs must be officially registered and recognized by the Kansas Office of Apprenticeship.
— Apprentices are required to have successfully completed their defined probationary period before the incentive can be claimed.
— Incentives are generally applicable for up to 20 apprentices per employer, per year, and for a maximum duration of 4 years per apprentice.
– For-Profit Businesses Tax Credits:
— Applicant must be a for-profit business entity currently paying Kansas state taxes.
— Apprentices participating in the program must generally be residents of Kansas.
– Non-Profit Apprenticeship Grant Program:
— Applicant must be an eligible non-profit organization, which includes non-profit healthcare employers.
— Apprentices involved must generally be residents of Kansas.
– Kansas Educator Registered Apprenticeship Grant Program:
— Eligible applicants include K-12 education employers or other entities directly supporting teacher apprenticeship programs.
— Grants are designated for teacher apprentices attending applicant schools, intended to cover costs such as tuition, mandatory fees, books, and essential learning materials.

Benefits:
– For-Profit Businesses:
— Tax credits valued at up to $2,500 per apprentice for tax years 2023 through 2025.
— Increased tax credits up to $2,750 per apprentice for tax years 2026 and thereafter.
— An additional $500 tax credit is available if the apprentice is enrolled in a Perkins Eligible program.
– Non-Profit Organizations (including healthcare sector):
— Grant awards of up to $2,750 per employed apprentice.
– Educator Apprentices (funding provided via their employer or program):
— Grant funding up to $2,750 per year, for a maximum of four years, to cover educational expenses like tuition, fees, books, and materials.

Deadline: Ongoing – Varies by specific program component; applicants should consult the official program guidelines provided by the Kansas Office of Registered Apprenticeship for precise tax year and application period deadlines.

Terms:
– Registered Apprenticeship Program: A structured training model that combines paid on-the-job learning with related theoretical instruction, officially registered with the Kansas Office of Apprenticeship and adhering to national standards.
– ETA-671 Form: The official U.S. Department of Labor form titled “Registered Apprenticeship Agreement,” which outlines the specific terms and conditions of an individual apprenticeship.
– Probationary Period: An initial evaluation period for a new apprentice, the duration of which is defined in the apprenticeship program’s standards. This period cannot exceed 25% of the total program length or one year, whichever is shorter. The apprentice must complete this period while employed by the eligible employer for the incentive to be claimed.
– Perkins Eligible Program: Refers to a Career and Technical Education (CTE) program that meets the criteria set forth by the Carl D. Perkins Career and Technical Education Act, typically focusing on developing skills for high-skill, high-wage, or in-demand occupations.
– HB 2292: The specific legislative bill number for the Kansas House Bill that enacted the Kansas Apprenticeship Act.
– RAPIDS: An acronym for the Registered Apprenticeship Program Information Database System, which is the U.S. Department of Labor’s national system for managing data related to registered apprenticeships.
– Kansas Department of Commerce: The primary state agency tasked with administering the grant-based portions of the Kansas Apprenticeship Act.
– Kansas Department of Revenue: The primary state agency responsible for administering the tax credit components of the Kansas Apprenticeship Act.