Apprenticeships for Small Businesses Act of 2025
Summary
The Apprenticeships for Small Businesses Act of 2025 introduces a tax credit for small businesses that employ qualifying career and technical education students. This credit aims to incentivize small businesses to invest in the training and development of young workers and apprentices. The bill amends the Internal Revenue Code of 1986 to establish this new credit, which covers a portion of qualified wages and workmen's compensation expenses.
Expected Effects
The Act will likely increase the number of apprenticeships and technical education opportunities available at small businesses. This could lead to a more skilled workforce and improved employment prospects for young people. The tax credit may also reduce the financial burden on small businesses, encouraging them to hire and train more students.
Potential Benefits
- Increased Job Opportunities: More apprenticeships and technical education positions for young people.
- Reduced Costs for Small Businesses: Tax credits offset the expenses of employing and training students.
- Skilled Workforce Development: Encourages businesses to invest in training the next generation of workers.
- Economic Growth: Stimulates local economies by supporting small businesses and creating jobs.
- Improved Educational Outcomes: Provides practical, real-world experience for students in career and technical fields.
Potential Disadvantages
- Complexity of Implementation: Small businesses may face challenges navigating the tax credit application process.
- Limited Scope: The credit is capped at $10,000 per taxpayer, which may not be sufficient for all businesses.
- Potential for Abuse: Risk of businesses misclassifying employees to claim the credit.
- Administrative Burden: Increased paperwork and compliance requirements for both businesses and the IRS.
- Delayed Impact: The amendments apply to amounts paid or incurred in taxable years beginning after December 31, 2025, delaying immediate benefits.
Constitutional Alignment
The Apprenticeships for Small Businesses Act of 2025 appears to align with the Constitution's broad mandate to "promote the general Welfare" (Preamble). Congress has the power to lay and collect taxes (Article I, Section 8) and to make all laws which shall be necessary and proper for carrying into execution the foregoing powers. The Act uses the tax code to incentivize certain behaviors (hiring and training young workers), which falls within Congress's enumerated powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).