HB 7377 Summary

• Extends manufacturing apprenticeship tax credit to affected business entities for tax years commencing on or after January 1, 2019, effective July 1, 2019.

• Manufacturing trades credit: $6 per hour worked during first half of two-year apprenticeships or first three-quarters of four-year apprenticeships, capped at $7,500 or 50% of actual wages paid, whichever is less.

• For tax years 2019 and beyond, allows S corporations, partnerships, and single-member LLCs to claim credits through their shareholders, partners, or owners directly.

• Plastics trades credit: $4 per hour (capped at $4,800 or 50% of wages) only when apprenticeships exceed the taxpayer's average from prior five years.

• Construction trades credit: $2 per hour upon program completion for four-year certified apprenticeships, capped at $4,000 or 50% of total wages over four years, whichever is less.