Starting from January 1, 2024, this legislation enables an income tax credit for taxpayers who hire interns or apprentices, as defined in the act. The credit amounts to $1,500 per intern or apprentice employed at a pay rate equal to or exceeding the minimum wage. To qualify, the total number of interns and apprentices hired during the tax year must surpass the average from the previous three years, and they must work a specified number of hours as outlined in the act.
Taxpayers cannot claim a credit exceeding $9,000 in a single tax year, and the overall tax credits authorized by this act cannot exceed $1 million annually. These credits are non-refundable, non-transferable, and cannot be carried forward. To apply for the tax credit, taxpayers must submit relevant information to the Department of Economic Development, including details about participation in a qualified apprenticeship program or an official transcript for interns.
Lastly, this legislation will expire on December 31, 2029, unless reauthorized by the General Assembly.
Missouri ‘Intern and Apprentice Recruitment Act’
Effective for tax periods beginning on or after January 1, 2024
Must be a qualified apprenticeship program certified by US Department of Labor, in partnership with Missouri department of higher education and workforce development and conducted in Missouri.
$1,500 non-refundable credit for each intern or apprentice hired at a pay rate equal to or greater than minimum wage.
Total number of interns or apprentices employed for the tax year that the credit is claimed must exceed average number of interns or apprentices employed over the previous 3 years.
Apprentices shall comply with all Federal requirements of a qualified apprenticeship including a minimum of 2000 hours of on-the-job training and 144 hours of required technical instruction in a calendar year.
Maximum credit claimed by a taxpayer cannot exceed $9,000 in any given year.
Eligible taxpayers: Individuals, Corporations, Partnerships, S Corporations.
Missouri Department of Economic Development handles applications
For more information please visit the Missouri Department of Economic Development’s website or contact your MarksNelson professional at 816-743-7700.
