H.R.3871 - Apprenticeship Infrastructure Tax Credit Act of 2025 (119th Congress)
Summary
H.R. 3871, the Apprenticeship Infrastructure Tax Credit Act of 2025, proposes to amend the Internal Revenue Code of 1986 by introducing a tax credit for employers who hire individuals through qualified apprenticeship programs. The bill aims to incentivize employer participation in apprenticeship programs, particularly in infrastructure-related occupations.
The tax credit provides up to $3,000 per apprentice employee, with an increased credit of $6,000 for recently separated veterans, members of the National Guard or Reserve, and military spouses. The credit is available for a limited period and is subject to a volume cap of $5 billion.
The bill also includes provisions for the Secretary of Labor to identify eligible infrastructure-related occupations and to issue apprenticeship tax credit eligibility certificates to employers.
Expected Effects
The bill, if enacted, would likely increase the number of apprenticeship programs and the number of individuals participating in them, especially in infrastructure-related fields. This could lead to a more skilled workforce and increased employment opportunities.
Employers would likely be incentivized to hire apprentices, particularly veterans and military spouses, due to the tax credit. The legislation also establishes mechanisms for tracking and managing the credit to ensure it remains within the allocated budget.
Potential Benefits 4/5
- Increased job training and skill development in infrastructure-related occupations.
- Incentivizes employers to hire and train new workers, especially veterans and military spouses.
- Potential reduction in unemployment and underemployment.
- Supports economic growth by creating a more skilled workforce.
- May lead to higher wages and improved career prospects for apprentices.
Potential Disadvantages
- The $5 billion volume cap could limit the long-term effectiveness of the program.
- Potential for administrative complexity in determining eligibility and issuing certificates.
- Some employers might exploit the tax credit without providing meaningful training.
- The focus on infrastructure-related occupations may neglect other important sectors.
- The credit could create a distortion in the labor market, favoring apprentices over other types of employees.
Constitutional Alignment 4/5
The bill appears to align with the general welfare clause of the US Constitution (Preamble). Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1).
The creation of tax credits to incentivize apprenticeship programs falls under Congress's power to promote the general welfare by supporting workforce development and economic growth. The bill does not appear to infringe upon any specific individual rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About
This action has been evaluated across 19 key areas that matter to citizens. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).