Effective July 1, 2023, Governor Kelly signed into law the Kansas Apprenticeship Act (Act), which establishes a tax credit and grant incentive program for apprenticeships and creates a matching grant program. This act establishes an incentive fund for businesses and non-profits hiring registered apprentices. It is separated into 3 specific areas including $7.5 million in tax credits to for-profit businesses*, $2.5 million for non-profits and healthcare, and $3 million for K-12 Education. The incentive fund is a use-it-or-lose-it fund as it does not allow for carry-over funding nor building value. It also does not have a sunset clause.
- Kansas Nonprofit Apprenticeship Grant Program - Commerce awards and administers grants to eligible nonprofit employers and eligible nonprofit healthcare employers that employ an apprentice pursuant to a registered apprenticeship agreement. The amount of the grant is up to $2,750 for each employed apprentice, not to exceed 20 such grants in any taxable year per eligible employer and up to 4 years per apprentice. Disbursement method: Apprenticeship Grant funds will be reimbursed two times per year using a voucher method.
- Kansas Educator Apprenticeship Grant Program - Commerce awards and administers grants to eligible Teacher Educator apprentices attending applicant schools and awarded through their employer. The use of grant funds for the payment of apprentice tuition, fees, and the cost of books and materials, up to a maximum of $2,750 per year for four years. Disbursement method: Apprenticeship Grant funds will be reimbursed two times per year. Documentation showing expenditures will be required for each distribution. Purchase orders, invoices, and/or proof of payment via canceled checks or bank statements can be submitted as proof of expended matching funds and awarded dollars.
Grant funds may be used for project needs related to technical instruction for the registered apprenticeship, OJT, apprentice wages, staffing and/or FTE to implement and manage programs, marketing and outreach, and other allowable activities on an as-needed basis.
Fiscal Year – July 1, 2024
Funding window 1: January 1 through January 31 for 2024 (finished probationary period July – Dec 2023)
Funding window 2: May 1 through May 31 for 2024 (finished probationary period through Jan - June 2024)
Fiscal Year – July 1, 2025
Funding window 1: January 1 through January 31 for 2025 (finished probationary period July – Dec 2024)
Funding window 2: May 1 through May 31 for 2025 (finished probationary period through Jan - June 2025)
*Kansas For-Profit Businesses Tax Credits
The Kansas For-Profit Businesses Tax Credits authorizes Kansas Department of Revenue to award tax credits up to $2,500 until after December 31, 2025 when it goes up to $2,750 for each employed apprentice, not to exceed 20 such credits in any taxable year per eligible employer and up to 4 years per apprentice. The tax credit is to be claimed by an eligible employer for the taxable year in which the apprentice completed the probationary period or the taxable year succeeding the calendar year in which the apprentice completed the probationary period while employed by the eligible employer. Please contact the Kansas Department of Revenue for this tax credit: https://www.ksrevenue.gov/