Maryland 2025 Regular Session

Maryland Senate Bill SB325 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	sb0325
6	6
7	7	SENATE BILL 325
8	8	Q3 5lr1799
9	9
10	10	By: Senators Carozza, Augustine, Bailey, Corderman, Jennings, Rosapepe, and
11	11	Salling
12	12	Introduced and read first time: January 15, 2025
13	13	Assigned to: Budget and Taxation
14	14
15	15	A BILL ENTITLED
16	16
17	17	AN ACT concerning 1
18	18
19	19	Income Tax – Credit for Employers of Eligible Apprentices – Alterations 2
20	20
21	21	FOR the purpose of altering the definition of “eligible apprentice” for purposes of a certain 3
22	22	credit against the State income tax for the employment of certain eligible apprentices 4
23	23	by repealing a certain wage requirement; extending for a certain number of years 5
24	24	the termination of the credit; and generally relating to an income tax credit for 6
25	25	employers of eligible apprentices. 7
26	26
27	27	BY repealing and reenacting, with amendments, 8
28	28	Article – Tax – General 9
29	29	Section 10–742 10
30	30	Annotated Code of Maryland 11
31	31	(2022 Replacement Volume and 2024 Supplement) 12
32	32
33	33	BY repealing and reenacting, with amendments, 13
34	34	Chapter 149 of the Acts of the General Assembly of 2017, as amended by Chapter 14
35	35	643 of the Acts of the General Assembly of 2020 15
36	36	Section 9 16
37	37
38	38	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
39	39	That the Laws of Maryland read as follows: 18
40	40
41	41	Article – Tax – General 19
42	42
43	43	10–742. 20
44	44
45	45	(a) (1) In this section the following words have the meanings indicated. 21
46	46
47	47	(2) “Department” means the Maryland Department of Labor. 22
48	48	2 SENATE BILL 325
49	49
50	50
51	51	(3) “Eligible apprentice” means an individual who: 1
52	52
53	53	(i) is enrolled in an apprenticeship training program that: 2
54	54
55	55	1. is registered with the Maryland Apprenticeship and 3
56	56	Training Council in accordance with § 11–405 of the Labor and Employment Article; 4
57	57
58	58	2. provides highly supervised training skills through a 5
59	59	certified Apprenticeship Training Program, for classroom credit offered at community 6
60	60	colleges, universities, high schools, vocational training centers, or directly through certified 7
61	61	Apprenticeship Training Centers registered with the State; 8
62	62
63	63	3. meets Maryland Apprenticeship and Training Council 9
64	64	requirements for Youth Apprenticeships and Registered Apprenticeships, as applicable; 10
65	65	and 11
66	66
67	67	4. complies with 29 C.F.R. § 29.5(b)(7); AND 12
68	68
69	69	(ii) 1. has been employed by the taxpayer for at least 450 hours 13
70	70	of the taxable year through a youth apprenticeship program; or 14
71	71
72	72	2. for an individual other than an individual described under 15
73	73	item 1 of this item, has been employed by the taxpayer for at least 7 full months of the 16
74	74	taxable year[; and 17
75	75
76	76	(iii) if the individual is in an employee classification for which there 18
77	77	is a prevailing wage rate, receives an apprenticeship wage that is at least 50% of the 19
78	78	prevailing wage]. 20
79	79
80	80	(4) “Fund” means the Apprenticeship Tax Credit Reserve Fund established 21
81	81	under subsection (e) of this section. 22
82	82
83	83	(b) Subject to the limitations of this section, a taxpayer may claim a credit against 23
84	84	the State income tax in an amount equal to the amount stated in the tax credit certificate 24
85	85	issued under subsection (c) of this section for the first year of employment of an eligible 25
86	86	apprentice. 26
87	87
88	88	(c) (1) A taxpayer may submit an application to the Department for a tax 27
89	89	credit certificate. 28
90	90
91	91	(2) The application shall be in the form and contain the information that 29
92	92	the Department requires, including proof of: 30
93	93
94	94	(i) the enrollment of each eligible apprentice in a registered 31
95	95	apprenticeship program; and 32
96	96	SENATE BILL 325 3
97	97
98	98
99	99	(ii) the duration of each eligible apprentice’s employment by the 1
100	100	taxpayer. 2
101	101
102	102	(3) Subject to paragraph (4) of this subsection, the Department shall issue 3
103	103	a tax credit certificate to the taxpayer in the amount of: 4
104	104
105	105	(i) except as provided in item (ii) of this paragraph, $1,000 for each 5
106	106	eligible apprentice; or 6
107	107
108	108	(ii) with respect to the first five eligible apprentices for whom the 7
109	109	taxpayer claims the credit under this section: 8
110	110
111	111	1. $1,000 for each eligible apprentice if the eligible 9
112	112	apprentice is employed through a youth apprenticeship program; and 10
113	113
114	114	2. $3,000 for each eligible apprentice who is not an eligible 11
115	115	apprentice described under item 1 of this item. 12
116	116
117	117	(4) The Department may not certify more than $15,000 of tax credits in the 13
118	118	taxable year for any taxpayer. 14
119	119
120	120	(5) The Department shall: 15
121	121
122	122	(i) approve all applications that qualify for a tax credit certificate 16
123	123	under this subsection on a first–come, first–served basis; and 17
124	124
125	125	(ii) notify a taxpayer within 45 days of receipt of the taxpayer’s 18
126	126	application of its approval or denial. 19
127	127
128	128	(6) For each taxable year, the total amount of tax credit certificates that 20
129	129	may be issued by the Department under this section may not exceed the total funds 21
130	130	available in the Fund for that year. 22
131	131
132	132	(d) (1) The total amount of the credit allowed under this section for any taxable 23
133	133	year may not exceed the State income tax for that taxable year, calculated before the 24
134	134	application of the credits under this section and §§ 10–701 and 10–701.1 of this subtitle, 25
135	135	but after the application of other credits allowable under this subtitle. 26
136	136
137	137	(2) If the credit otherwise allowable under this section exceeds the limit 27
138	138	under paragraph (1) of this subsection, a taxpayer may apply the excess as a credit against 28
139	139	the State income tax for succeeding taxable years until the full amount of the excess is 29
140	140	used. 30
141	141
142	142	(e) (1) There is an Apprenticeship Tax Credit Reserve Fund. 31
143	143
144	144	(2) The Department shall administer the Fund. 32
145	145	4 SENATE BILL 325
146	146
147	147
148	148	(3) The purpose of the Fund is to offset the revenue reduction to the 1
149	149	General Fund of the State as a result of the tax credits authorized under this section. 2
150	150
151	151	(4) The Fund is a special continuing, nonlapsing fund that is not subject to 3
152	152	§ 7–302 of the State Finance and Procurement Article. 4
153	153
154	154	(5) The State Treasurer shall hold the Fund separately, and the 5
155	155	Comptroller shall account for the Fund. 6
156	156
157	157	(6) The Fund consists of: 7
158	158
159	159	(i) money appropriated in the State budget to the Fund; and 8
160	160
161	161	(ii) any other money from any other source accepted for the benefit 9
162	162	of the Fund. 10
163	163
164	164	(7) The money in the Fund shall be invested and reinvested by the State 11
165	165	Treasurer, and interest and earnings shall be credited to the General Fund of the State. 12
166	166
167	167	(8) For each fiscal year, the Governor shall include in the budget bill an 13
168	168	appropriation to the Fund. 14
169	169
170	170	(9) Notwithstanding the provisions of § 7–213 of the State Finance and 15
171	171	Procurement Article, the Governor may not reduce an appropriation to the Fund in the 16
172	172	State budget as approved by the General Assembly. 17
173	173
174	174	(10) (i) Except as otherwise provided in this paragraph, money credited 18
175	175	or appropriated to the Fund shall remain in the Fund. 19
176	176
177	177	(ii) 1. Within 15 days after the end of each calendar quarter, the 20
178	178	Department shall notify the Comptroller as to each tax credit certificate issued during the 21
179	179	quarter. 22
180	180
181	181	2. On notification that a tax credit certificate has been issued 23
182	182	by the Department, the Comptroller shall transfer an amount equal to the credit amount 24
183	183	stated in the tax credit certificate from the Fund to the General Fund of the State. 25
184	184
185	185	(f) The Department shall adopt regulations to: 26
186	186
187	187	(1) implement the provisions of this section; and 27
188	188
189	189	(2) specify criteria and procedures for application for, approval of, and 28
190	190	monitoring continuing eligibility for the tax credit under this section. 29
191	191
192	192	SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 30
193	193	as follows: 31
194	194	SENATE BILL 325 5
195	195
196	196
197	197	Chapter 149 of the Acts of 2017, as amended by Chapter 643 of the Acts of 2020 1
198	198
199	199	SECTION 9. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 2
200	200	effect July 1, 2017, and shall be applicable to all taxable years beginning after December 3
201	201	31, 2016, but before January 1, [2025] 2031. It shall remain effective for a period of [8] 14 4
202	202	years and, at the end of June 30, [2025] 2031, with no further action required by the 5
203	203	General Assembly, Section 2 of this Act shall be abrogated and of no further force and effect. 6
204	204
205	205	SECTION 3. AND BE IT FURTHER ENACTED, That Section 1 of this Act sha ll be 7
206	206	applicable to all taxable years beginning after December 31, 2024. 8
207	207
208	208	SECTION 4. AND BE IT FURTHER ENACTED, That this Act shall take effect June 9
209	209	1, 2025. 10