WASHINGTON (WOWO): U.S. Sen. Todd Young and U.S. Rep. Nathaniel Moran are backing legislation designed to encourage more businesses to create and expand apprenticeship programs by offering a federal tax credit to participating employers.

According to Young’s office, the Workforce Apprenticeship Growth and Education Support, or WAGES, Act would establish a refundable payroll tax credit for employers that maintain or participate in a Registered Apprenticeship Program.

The proposed credit would help offset wages paid to apprentices and mentors, as well as other costs associated with operating apprenticeship programs.

“Apprenticeships equip individuals with sustainable skills to advance their careers and offer employers job-ready workers, but too many businesses still face barriers to launching or scaling these programs,” Young said in a statement. “At a time when high-demand industries are struggling to fill open positions, our bill will make it easier for businesses to invest in high-quality apprenticeship programs, strengthening our workforce and expanding pathways to good-paying careers.”

Under the legislation, employers would be required to maintain or participate in a registered apprenticeship program, employ at least one qualified apprentice during a calendar quarter and refrain from receiving federal payments for the same qualifying wages or expenses.

According to the bill’s sponsors, eligible expenses would include classroom and technical instruction, on-the-job training costs, mentor compensation, apprenticeship program development and maintenance expenses, and certain collective bargaining agreement contributions that support registered apprenticeship programs.

Supporters say the measure is intended to address workforce shortages in high-demand industries while creating additional pathways for workers to gain job skills and enter careers without pursuing traditional four-year degrees.

The legislation has been introduced in Congress but has not yet advanced to a vote.