Apprenticeship Alabama ensures all employers in Alabama have access to the tools and human capital they need, at no charge, through sponsorship of a demand-driven registered apprenticeship program.
The Department of Commerce, as the Apprenticeship Program Manager, will absorb any administrative/operational costs and will use current staff to administer the program, thus requiring no additional costs. Alabama companies will pay the training wages and as sponsors of individual apprentices, will also pay college costs. The proposed tax credit for participating companies is $1,000. This credit will benefit the companies as well as demonstrate the state’s commitment to the program, as a partner. Workforce Innovation Opportunity Act (WIOA) funds may be available to reduce company (sponsor) cost of On-the-job Training (OJT).
Apprenticeship Tax Credit Act of 2016
Upon passage of Senate Bill 90, Apprenticeship Tax Credit was enacted May 3, 2016. The Workforce Development Division of the Department of Commerce, in coordination with the Board of Trustees of the Alabama Community College System or its designee, may adopt any rules necessary to establish standards for participation and eligibility and to implement and administer this act. The division shall consult with the Department of Revenue to coordinate implementation and administration of this act.
Apprenticeship Program Length:
Typically 3 to 4 years (per USDOL requirements by skill)
Advance Manufacturing, IT, Healthcare, Logistic, & Warehouse Distribution
Register with US Department of Labor
Delivered by community colleges for adults
Delivered by Career Technical Education (CTE) high schools for youth
Hands On Training:
Delivered by employer/company
Department of Commerce
- Development of a highly-skilled workforce
- Meets needs of Alabama companies
- Creates an industry-driven customizable training solution Company tax credit
- Decreases turnover rate/increases employee retention Increase high wage earning potential
- Increases productivity
- Are colleges included in the delivery of the program?
- Yes. The colleges will deliver the classroom/theory portion of the apprentice program for adults.
- Is the apprenticeship program union related?
- No, an apprenticeship program registered with USDOL does not make it union or union related (example: The MBUSI apprenticeship program is registered with USDOL).
- Can union companies apply for a tax credit?