West Virginia Apprentice Tax Credit

Generally, contractors operating within West Virginia are required to use a minimum amount of apprentices on jobs that occur within the state. Less well-known is the tax incentive that West Virginia provides to offset this mandate in the form of a tax credit based on hours worked.

The contractor’s eligible apprentices must be registered with the Office of Apprenticeship, West Virginia State Office by the taxpayer/employer and participate in a qualified apprenticeship program. Such a program must be jointly administered by labor and management trustees, administered pursuant to 29 U.S.C. Section 50, and certified in accordance with the regulations adopted by the United States Bureau of Apprenticeship.

The credit is based on the hours worked by the apprentice during the tax year. If you have any questions regarding this credit or its potential application to your business, contact a member of Schneider Downs’ construction industry advisory group.

This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.