Eliminating the requirement that the apprenticeship training tax credit base be limited to wages paid to apprentices in the construction trades
Summary
HB2052 expands West Virginia’s apprenticeship training tax credit. Under current law, the credit applies to wages paid to apprentices in the construction trades who are registered with the U.S. Department of Labor’s Office of Apprenticeship and participate in a qualified apprenticeship program. Beginning with tax years on or after January 1, 2026, the bill removes the construction-trades limitation and allows the credit for wages paid to registered apprentices in any qualifying apprenticeship program, so long as the program meets the existing federal certification and training-hour requirements.
The credit remains calculated at $2 per hour worked by an apprentice, capped at $2,000 per apprentice per tax year or 50 percent of actual wages paid, whichever is less. The bill also keeps the existing structure for applying the credit first against corporation net income tax and then, if unused, against certain personal income tax liabilities for pass-through entities and sole proprietors. Unused credit still cannot be carried back and is forfeited if not used in the year earned.
Impact
The bill amends §11-13W-1 of the West Virginia Code to broaden eligibility for the apprenticeship training tax credit beyond construction trades, which could increase the number of employers and industries able to claim the credit starting in 2026. It does not change the credit amount, program certification standards, or the order in which the credit is applied against state tax liabilities, but it does expand the pool of qualifying apprentices and participating taxpayers. The bill also maintains the prohibition on using the credit against employer withholding taxes and the rule that unused credits are lost rather than carried forward or back.
Sentiment
The available voting history suggests strong bipartisan support, as the House passed the bill 94-0. No committee transcript excerpts were provided, so there is no recorded floor or committee debate to indicate opposition. The bill’s caption and unanimous House vote suggest it was viewed as a technical but pro-workforce development measure.
Contention
No specific points of contention are documented in the provided materials. The main policy change is the removal of the construction-trades limitation, which could raise questions about the fiscal cost of the credit and whether it should be extended to all apprenticeship programs rather than remaining targeted to a narrower set of industries. However, no named opponents or objections appear in the available discussion or vote record.
Expiring funds to the unappropriated surplus balance in the State Fund, General Revenue, from the Department Revenue, State Budget Office, PEIA Rainy Day Fund