Maryland 2025 Regular Session

Maryland House Bill HB1047 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MATTER ADDE D TO EXISTING LAW .
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb1047
6	6
7	7	HOUSE BILL 1047
8	8	Q3 5lr3121
9	9	CF SB 325
10	10	By: Delegates Wu, Spiegel, and Woorman
11	11	Introduced and read first time: February 5, 2025
12	12	Assigned to: Ways and Means
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Income Tax – Credit for Employers of Eligible Apprentices – Alterations 2
19	19
20	20	FOR the purpose of altering the definition of “eligible apprentice” for purposes of a certain 3
21	21	credit against the State income tax for the employment of certain eligible apprentices 4
22	22	by repealing a certain wage requirement; extending for a certain number of years 5
23	23	the termination of the credit; and generally relating to an income tax credit for 6
24	24	employers of eligible apprentices. 7
25	25
26	26	BY repealing and reenacting, with amendments, 8
27	27	Article – Tax – General 9
28	28	Section 10–742 10
29	29	Annotated Code of Maryland 11
30	30	(2022 Replacement Volume and 2024 Supplement) 12
31	31
32	32	BY repealing and reenacting, with amendments, 13
33	33	Chapter 149 of the Acts of the General Assembly of 2017, as amended by Chapter 14
34	34	643 of the Acts of the General Assembly of 2020 15
35	35	Section 9 16
36	36
37	37	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
38	38	That the Laws of Maryland read as follows: 18
39	39
40	40	Article – Tax – General 19
41	41
42	42	10–742. 20
43	43
44	44	(a) (1) In this section the following words have the meanings indicated. 21
45	45
46	46	(2) “Department” means the Maryland Department of Labor. 22
47	47
48	48	(3) “Eligible apprentice” means an individual who: 23 2 HOUSE BILL 1047
49	49
50	50
51	51
52	52	(i) is enrolled in an apprenticeship training program that: 1
53	53
54	54	1. is registered with the Maryland Apprenticeship and 2
55	55	Training Council in accordance with § 11–405 of the Labor and Employment Article; 3
56	56
57	57	2. provides highly supervised training skills through a 4
58	58	certified Apprenticeship Training Program, for classroom credit offered at community 5
59	59	colleges, universities, high schools, vocational training centers, or directly through certified 6
60	60	Apprenticeship Training Centers registered with the State; 7
61	61
62	62	3. meets Maryland Apprenticeship and Training Council 8
63	63	requirements for Youth Apprenticeships and Registered Apprenticeships, as applicable; 9
64	64	and 10
65	65
66	66	4. complies with 29 C.F.R. § 29.5(b)(7); AND 11
67	67
68	68	(ii) 1. has been employed by the taxpayer for at least 450 hours 12
69	69	of the taxable year through a youth apprenticeship program; or 13
70	70
71	71	2. for an individual other than an individual described under 14
72	72	item 1 of this item, has been employed by the taxpayer for at least 7 full months of the 15
73	73	taxable year[; and 16
74	74
75	75	(iii) if the individual is in an employee classification for which there 17
76	76	is a prevailing wage rate, receives an apprenticeship wage that is at least 50% of the 18
77	77	prevailing wage]. 19
78	78
79	79	(4) “Fund” means the Apprenticeship Tax Credit Reserve Fund established 20
80	80	under subsection (e) of this section. 21
81	81
82	82	(b) Subject to the limitations of this section, a taxpayer may claim a credit against 22
83	83	the State income tax in an amount equal to the amount stated in the tax credit certificate 23
84	84	issued under subsection (c) of this section for the first year of employment of an eligible 24
85	85	apprentice. 25
86	86
87	87	(c) (1) A taxpayer may submit an application to the Department for a tax 26
88	88	credit certificate. 27
89	89
90	90	(2) The application shall be in the form and contain the information that 28
91	91	the Department requires, including proof of: 29
92	92
93	93	(i) the enrollment of each eligible apprentice in a registered 30
94	94	apprenticeship program; and 31
95	95
96	96	(ii) the duration of each eligible apprentice’s employment by the 32
97	97	taxpayer. 33 HOUSE BILL 1047 3
98	98
99	99
100	100
101	101	(3) Subject to paragraph (4) of this subsection, the Department shall issue 1
102	102	a tax credit certificate to the taxpayer in the amount of: 2
103	103
104	104	(i) except as provided in item (ii) of this paragraph, $1,000 for each 3
105	105	eligible apprentice; or 4
106	106
107	107	(ii) with respect to the first five eligible apprentices for whom the 5
108	108	taxpayer claims the credit under this section: 6
109	109
110	110	1. $1,000 for each eligible apprentice if the eligible 7
111	111	apprentice is employed through a youth apprenticeship program; and 8
112	112
113	113	2. $3,000 for each eligible apprentice who is not an eligible 9
114	114	apprentice described under item 1 of this item. 10
115	115
116	116	(4) The Department may not certify more than $15,000 of tax credits in the 11
117	117	taxable year for any taxpayer. 12
118	118
119	119	(5) The Department shall: 13
120	120
121	121	(i) approve all applications that qualify for a tax credit certificate 14
122	122	under this subsection on a first–come, first–served basis; and 15
123	123
124	124	(ii) notify a taxpayer within 45 days of receipt of the taxpayer’s 16
125	125	application of its approval or denial. 17
126	126
127	127	(6) For each taxable year, the total amount of tax credit certificates that 18
128	128	may be issued by the Department under this section may not exceed the total funds 19
129	129	available in the Fund for that year. 20
130	130
131	131	(d) (1) The total amount of the credit allowed under this section for any taxable 21
132	132	year may not exceed the State income tax for that taxable year, calculated before the 22
133	133	application of the credits under this section and §§ 10–701 and 10–701.1 of this subtitle, 23
134	134	but after the application of other credits allowable under this subtitle. 24
135	135
136	136	(2) If the credit otherwise allowable under this section exceeds the limit 25
137	137	under paragraph (1) of this subsection, a taxpayer may apply the excess as a credit against 26
138	138	the State income tax for succeeding taxable years until the full amount of the excess is 27
139	139	used. 28
140	140
141	141	(e) (1) There is an Apprenticeship Tax Credit Reserve Fund. 29
142	142
143	143	(2) The Department shall administer the Fund. 30
144	144
145	145	(3) The purpose of the Fund is to offset the revenue reduction to the 31
146	146	General Fund of the State as a result of the tax credits authorized under this section. 32 4 HOUSE BILL 1047
147	147
148	148
149	149
150	150	(4) The Fund is a special continuing, nonlapsing fund that is not subject to 1
151	151	§ 7–302 of the State Finance and Procurement Article. 2
152	152
153	153	(5) The State Treasurer shall hold the Fund separately, and the 3
154	154	Comptroller shall account for the Fund. 4
155	155
156	156	(6) The Fund consists of: 5
157	157
158	158	(i) money appropriated in the State budget to the Fund; and 6
159	159
160	160	(ii) any other money from any other source accepted for the benefit 7
161	161	of the Fund. 8
162	162
163	163	(7) The money in the Fund shall be invested and reinvested by the State 9
164	164	Treasurer, and interest and earnings shall be credited to the General Fund of the State. 10
165	165
166	166	(8) For each fiscal year, the Governor shall include in the budget bill an 11
167	167	appropriation to the Fund. 12
168	168
169	169	(9) Notwithstanding the provisions of § 7–213 of the State Finance and 13
170	170	Procurement Article, the Governor may not reduce an appropriation to the Fund in the 14
171	171	State budget as approved by the General Assembly. 15
172	172
173	173	(10) (i) Except as otherwise provided in this paragraph, money credited 16
174	174	or appropriated to the Fund shall remain in the Fund. 17
175	175
176	176	(ii) 1. Within 15 days after the end of each calendar quarter, the 18
177	177	Department shall notify the Comptroller as to each tax credit certificate issued during the 19
178	178	quarter. 20
179	179
180	180	2. On notification that a tax credit certificate has been issued 21
181	181	by the Department, the Comptroller shall transfer an amount equal to the credit amount 22
182	182	stated in the tax credit certificate from the Fund to the General Fund of the State. 23
183	183
184	184	(f) The Department shall adopt regulations to: 24
185	185
186	186	(1) implement the provisions of this section; and 25
187	187
188	188	(2) specify criteria and procedures for application for, approval of, and 26
189	189	monitoring continuing eligibility for the tax credit under this section. 27
190	190
191	191	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 28
192	192	as follows: 29
193	193
194	194	Chapter 149 of the Acts of 2017, as amended by Chapter 643 of the Acts of 2020 30
195	195	HOUSE BILL 1047 5
196	196
197	197
198	198	SECTION 9. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 1
199	199	effect July 1, 2017, and shall be applicable to all taxable years beginning after December 2
200	200	31, 2016, but before January 1, [2025] 2031. It shall remain effective for a period of [8] 14 3
201	201	years and, at the end of June 30, [2025] 2031, with no further action required by the 4
202	202	General Assembly, Section 2 of this Act shall be abrogated and of no further force and effect. 5
203	203
204	204	SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act sha ll be 6
205	205	applicable to all taxable years beginning after December 31, 2024. 7
206	206
207	207	SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 8
208	208	1, 2025. 9
209	209