Guam § 10108 - Tax Credit for Pre-Apprenticeship Program

§ 10108. Tax Credit for Pre-Apprenticeship Program

Participants.

(a) Any business that provides skilled trainers to the Eligible

Training Provider List (ETPL) or to a non-profit organization

working with a registered ETPL on Guam and employs skilled

trainers shall be entitled to a tax credit against its business

privilege tax liability equal to one hundred percent (100%) 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;

(9) apprenticeship training costs paid by Workforce

Innovation and Opportunity Act (WIOA) 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;

(10) skilled trainers must provide training in all

apprenticeable occupations, as defined in the Occupational

List prioritized by the United States Department of Labor, to

participants who are unemployed and unskilled, unemployed

and underskilled veterans, participants of residential

substance abuse treatment programs, participants of the

Temporary Assistance for Needy Families Federal Benefits

Program, participants of the Able-Bodied Without

Dependents Program, or eligible participants of the Work

Credit program authorized in 9 GCA § 81.10;

(11) the application of the one hundred percent (100%)

tax credit as described in this Section shall apply only when

a minimum of ten (10) pre-apprentice applicants are qualified

as described in Subsection (j) of this Section, and the pre-

apprentice applicants, as defined herein, are registered with

an approved training ETPL or non-profit organization; and

(12) the term of the pre-apprentice cycle shall extend up

to a term of no less than six (6) months for participating non-

profit and for-profit organizations with Workforce

Innovation Opportunity Act (WIOA) agreements.

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

credit if allowed by the Guam Department of Revenue and

Taxation procedures.