Apprenticeship Tax Credit for For-Profit Organizations
Kansas For-Profit Business Tax Credits
The Kansas Apprenticeship Tax Act (K.S.A 74-50,231) authorizes the Kansas Department of Revenue to award tax credits 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. There is an additional $500 credit for Registered Apprenticeship programs connected to Perkins Eligible programming. The K-24 form will need to be completed through KS Department of Revenue. A link to this form can be found below.
New for tax year 2026:
For taxable year 2026, tax credits will be given based on the apprentice completing at least 25% of their total program.
REQUIRED STEPS FOR APPLYING FOR APPRENTICESHIP TAX CREDIT:
Outlined below, are the steps that each organization will need to take to apply and qualify for the tax credit.
- Ensure eligibility of apprentices.
- Complete KS Apprenticeship Act – Tax Credit Application form. This needs to be filled out by the company/taxpayer that plans to claim the credits. This form is automatically submitted to the Kansas Office of Registered Apprenticeship.
- Kansas Office of Registered Apprenticeship (KOA) will review and send a ‘Tax Credit Confirmation’ Certificate back to the company to confirm eligibility and the tax credit amount.
- The company/taxpayer fills out schedule K-24 from the Kansas Department of Revenue.
*NOTE* the credit amount allocated for the company will be listed on ‘Tax Credit Confirmation’ Certificate, which will be needed when filling out Line 1 on schedule K-24. - The Tax Credit Confirmation Certificate and schedule K-24 Form must be submitted with the Kansas Tax Return to the Kansas Department of Revenue.
Kansas Apprenticeship Tax and Grant Act
Effective July 1, 2023, Governor Kelly signed into law the Kansas Apprenticeship Act (Act), which establishes a tax credit and grant incentive programs 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. For more information on the act, please visit this link.
Total fund established is $13 million/year
Download complete guidance document here: