MARYLAND – Maryland lawmakers want to extend and edit an apprenticeship tax credit program for businesses. Supporters said the legislation is needed to ensure Maryland has enough workers set up for success.

Bill to Address Workforce Shortage

Senate Bill 325 would extend the state Income Tax Credit for Employers of Eligible Apprentices to 2030. The legislation would also do away with a requirement that businesses must pay apprentices at least 50 percent of the respective industry wage.

State Senator Mary Beth Carozza (R-Md. District 38), a member of the Apprenticeship 2030 Commission , is also the sponsor of the bill. The Commission’s goal is to ensure at least 60,000 registered apprenticeship opportunities by 2030.

“This will help address the acute workforce shortage that we have, especially in the high-demand industries,” said Sen. Carozza.

Reworking Pay Requirement

On the Eastern Shore, business leaders said several industries would stand to benefit from the program. Bill Chambers, president and CEO of the Salisbury Area Chamber of Commerce, said those industries would include manufacturing, agriculture, health care, and education.

“We need to do what states around us are doing to encourage apprenticeships which then develop into full-time paying jobs, which then develop into folks living in our communities and our state,” Chambers said.

In drafting the legislation, Sen. Carozza said she consulted with Seaside Plumbing in Berlin, as well as Delaware Elevator and Pohanka Automotive in Salisbury. She said smaller businesses struggle with the prevailing wage requirement, installed in 2020. With that rule change, Sen. Carozza said the number of participating employers declined from about 850 to 80.

“The small businesses were no longer able to take advantage of a tax incentive that was put in place, really, for doing exactly what they were doing, which was building the number of apprenticeships in the state of Maryland … You need employer incentives so they will come on board and make the investments in these apprenticeship training programs,” Sen. Carozza said.

Building the Pipeline

Sen. Carozza added she is not worried about the state’s looming budget deficit impacting this bill. She said the funding has already been accounted for. The lawmaker added she worked closely with the Lower Shore Workforce Alliance, Worcester, Wicomico, Somerset County Public Schools, and local employers to ensure the legislation was solid.

“We already have the incentive on the books. We need to ensure this apprenticeship tax credit works for all businesses,” Sen. Carozza said.

Looking Ahead

Chambers said the program is a valuable opportunity for students to immerse themselves in their career paths from the beginning.

“It’s a horrible idea to eliminate the tax credit fund because we would be eliminating apprenticeship opportunities in the state … This small amount of money to invest pays larger dividends that can be counted,” Chambers said.

The Senate Budget and Taxation Committee with review the bill on Jan. 22 at 10:30 a.m.