Tax Policy Analysis
H.R. 4286 (116th Congress) – Virtual Apprenticeship Tax Credit Act of 2019

Representative Ted Budd recently introduced the Virtual Apprenticeship Tax Credit Act of 2019 in September 11, 2019. This proposal would add IRC section 45T to provide taxpayers a credit
for 30 percent of the qualified virtual training expenses paid or incurred during the tax year, up to $2,500 tax credit per year.

What is a Virtual Apprenticeship?

Students who may not live close to college or be able to physically attend classes can enroll in the virtual apprenticeship program to develop skills that align with the continually changing
workforce. The virtual apprenticeship program provides an engaging experience in a virtual environment for job training and professional development. The qualified virtual training expenses related to the virtual apprenticeship program can generate a 30 percent credit. H.R. 4286 defines these expenses as “related to developing or expanding an industry-recognized
virtual apprenticeship program for elementary and secondary school students.”

What is the Purpose of H.R. 4286?

There are millions of Americans who are unemployed even though there are many jobs that remain unfilled. Many employers struggle to find employees with the necessary skills. Most students obtain a four-year degree, but they still graduate without the skills that employers want. There are not many alternative options for post-high school graduates except earning an associate’s or bachelor’s degree. To resolve this issue, Rep. Budd proposed the Virtual Apprenticeship Tax Credit Act of 2019 to encourage employers to provide virtual apprenticeship programs to students while in grades K to 12:
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