The Youth Registered Apprenticeship Tax Credit

The Youth Registered Apprenticeship Tax Credit is a state-based tax credit program that provides incentives to Michigan employers to sponsor federally approved registered apprenticeships. The state's School-to-Registered Apprenticeship (STRA) program serves students ages 16 to 19 who are enrolled in high school or a GED preparation program. Students are employed part time, and their structured on-the-job training is combined with classroom work. Employers who participate in the program qualify for a tax credit of up to $2,000 annually per apprenticeship that applies to the employer's single business tax. The tax credit covers 50 percent of the wage-related costs of the youth apprentice, including salary, fringes, and other payroll expenses. The tax credit also covers up to 100 percent of the costs of classroom-related instruction paid by the employer. These costs could include college level courses (e.g., fees, books, and tuition) taken by the student while still in high school.

The goal of this program is to encourage employers to participate in the STRA program so that students can learn valuable job skills.

More than 800 careers qualify for the apprenticeship program, which is available through more than 70 certified sites throughout Michigan.