Guam § 10108 - Tax Credit for Apprenticeship Program

§ 10108. Tax Credit for Apprenticeship Program

Participants.

(a) Any business that employs apprentices duly enrolled and

registered under the terms of the Program is entitled to a tax credit

against its business privilege tax liability equal to fifty percent

(50%) of the eligible costs paid or incurred by the business,

provided that:

(1) the apprenticeship training program teaches an

approved occupation under § 10104 of this Article;

(2) the apprentice completes a training stage of an

apprenticeship program as determined by DOL following

USDOL-OA standards. No tax credit shall be claimed by a

program participant for an apprentice unless the apprentice

satisfactorily completes the current level of training;

(3) the eligible costs were paid or incurred during the

apprentice’s participation in the Program;

(4) the eligible costs were paid or incurred within the

previous three (3) calendar years from the date the costs are

submitted to DOL for certification. Costs paid or incurred

earlier than the three (3) calendar years preceding the date the

costs are submitted to DOL shall not be certified as eligible

costs;

(5) no business or program participant holding a

Qualifying Certificate (QC) shall claim tax credits pursuant

to this Section. The Guam Economic Development Authority

shall assist the Director in determining whether a participant

may claim the credit;

(6) the apprentice must work a minimum of one hundred

twenty (120) hours per month at the trade;

(7) the apprentice must be paid the prevailing wage

required by the Program, which shall be a graduated

percentage of journeyman wages as outlined in the

apprenticeship standards;

(8) pre-apprentices are not counted as apprentices and

wages earned by pre-apprentices are not eligible for this tax

credit; and

(9) apprenticeship training costs paid by Workforce

Innovation and Opportunity Act (WOIA) funds, Department

of Labor Manpower Development Fund (MDF) funds,

Hotel/Restaurant Industry Training Program funds, and any

training costs paid by the government of Guam or federal

funding shall not be eligible Program costs and shall not be

applied as a tax credit.

(b) A program participant may only carry forward the tax

credit if allowed by the Guam Department of Revenue and

Taxation procedures.

2024 NOTE: Subsection designations added/altered pursuant to the

authority of 1 GCA § 1606.