Federal apprenticeship bill teases tax credit to offset training costs

A federal bill recently introduced in Congress could give roofing contractors a financial incentive to train the next generation of trade workers. 

What’s happening: The Workforce Apprenticeship Growth and Education Support (WAGES) Act — introduced by Texas Rep. Nathaniel Moran and Indiana Senator Todd Young in April, on National Apprenticeship Day — would create a refundable payroll tax credit for employers that participate in federal- or state-registered apprenticeship programs. 

Why it matters: U.S. employment of roofers is projected to grow six percent between 2024 and 2034, double the average for all occupations, according to the Bureau of Labor Statistics. 

• In Roofing Contractor’s 2026 State of the Roofing Industry Report, 36 percent of contractors cited a lack of qualified workers as a top concern, with 75 percent relying on in-house, on-the-job training.
• Meanwhile, most contractors can’t afford to formalize training, according to Moran’s office, which cited upfront costs of wages, supervision, instruction, and program development as key barriers, particularly among smaller businesses. 

What they’re saying: “Apprenticeships are one of the most powerful — and underutilized — pathways to prosperity in America. The WAGES Act makes it easier and less costly for businesses to invest in the next generation of skilled workers,” Moran said in a statement. 

• “We are making it practical for employers to create workforce opportunities from within their own organization — utilizing the expertise of their experienced employees to upskill and mentor younger workers, all the while keeping more of their tax dollars,” he added. 

Zoom in: Any roofing contractor who maintains or participates in a Department of Labor (DOL) or state-registered apprenticeship program would be eligible for the credit.

• If passed, the bill would cover 50 percent of apprentice wages, up to $5,000 per apprentice per quarter. 
• It would also cover half of program expenses, up to $2,500 per apprentice per quarter (capped at $50,000 per quarter), and mentor wages — the amount paid above a journey worker’s base rate while they’re actively training an apprentice — up to $10,000 per mentor per quarter.
• The tax credit is fully refundable: If an employer’s credit exceeds their quarterly payroll tax liability, they’d get the difference back from the IRS, a design feature to ensure small employers benefit as much as large ones. 

Zoom out: The National Roofing Contractor’s Association (NRCA) has endorsed the legislation, saying the tax credit has the potential to increase the number of registered apprenticeships within the roofing industry and help address workforce development needs, Duane Musser, NRCA’s Vice President of Government Legislation, told Homepros. 

• “By providing this tax credit, the bill would reduce upfront costs that often prevent employers from establishing apprenticeship programs, and therefore would help expand the use of Registered Apprenticeships as a strategy for addressing chronic workforce shortages in the roofing industry,” Musser said.  

The bottom line: For roofing contractors already training workers informally, the bill could turn an existing workforce strategy tool into a federally supported recruiting tool. 

• Nearly 40 percent of skilled construction workers are over 45, and for every five tradespeople retiring, only about two are entering the field. Roofing is not insulated from that math, Moran’s office said.