A BILL TO BE ENTITLED
AN ACT to allow an income tax credit against wages paid to certain apprentices.
The General Assembly of North Carolina enacts:
SECTION 1.  Part 1 of Article 4 of Subchapter I of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑130.49.  Credit for apprentices.
(a)	Credit. – A taxpayer that employs a qualifying apprentice is allowed a credit against the taxes imposed by this Part. The credit is equal to fifty percent (50%) of the product of two factors. The first factor is the number of hours worked by the apprentice, and the second factor is the qualifying apprentice's hourly wage for which the taxpayer remits withholding payments to the Department pursuant to Article 4A of this Chapter. A "qualifying apprentice" is either of the following:
(1)	An employee, who, during the term of apprenticeship, is (i) enrolled in an apprenticeship required for licensure by a State licensing board, (ii) employed by the taxpayer for at least 40 hours per week at an hourly wage above minimum wage, (iii) provided supervised instruction by a person licensed by the State licensing board requiring the apprenticeship, and (iv) performing work documented by the taxpayer and approved by the licensing board as appropriate for apprenticeship training.
(2)	An employee who is an apprentice, as defined in G.S. 115D‑11.10.
(b)	Substantiation. – A taxpayer allowed a credit under this section must maintain and make available for inspection any information or records required by the Secretary of Revenue. The taxpayer must obtain and submit documentation from the licensing board requiring the apprenticeship for licensure or from the State Board of Community Colleges that verifies the enrolled status of the apprentice and the term of the apprenticeship."
SECTION 2.  Part 2 of Article 4 of Subchapter I of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑153.11.  Credit for apprentices.
(a)	Credit. – A taxpayer that employs a qualifying apprentice is allowed a credit against the taxes imposed by this Part. The credit is equal to fifty percent (50%) of the product of two factors. The first factor is the number of hours worked by the apprentice, and the second factor is the qualifying apprentice's hourly wage for which the taxpayer remits withholding payments to the Department pursuant to Article 4A of this Chapter. A "qualifying apprentice" is either of the following:
(1)	An employee, who, during the term of apprenticeship, is (i) enrolled in an apprenticeship required for licensure by a State licensing board, (ii) employed by the taxpayer for at least 40 hours per week at an hourly wage above minimum wage, (iii) provided supervised instruction by a person licensed by the State licensing board requiring the apprenticeship, and (iv) performing work documented by the taxpayer and approved by the licensing board as appropriate for apprenticeship training.
(2)	An employee who is an apprentice, as defined in G.S. 115D‑11.10.
(b)	Substantiation. – A taxpayer allowed a credit under this section must maintain and make available for inspection any information or records required by the Secretary of Revenue. The taxpayer must obtain and submit documentation from the licensing board requiring the apprenticeship for licensure or from the State Board of Community Colleges that verifies the enrolled status of the apprentice and the term of the apprenticeship."
SECTION 3.  This act is effective for taxable years beginning on or after January 1, 2019.