(a) As used in this section:
(1) "Department" means the Department of Finance and Administration;
(2) "Office" means the Office of Apprenticeship of the United States Department of Labor; and
(3) "Youth apprentice" means an individual between the ages of sixteen (16) and twenty-one (21) years who is enrolled in a public or private secondary or postsecondary school.
(b) (1) A taxpayer who employs a youth apprentice in a registered apprenticeship program as provided in 29 C.F.R. § 29.1 et seq., Part 29, as in effect on January 1, 1995, shall be allowed a credit in the amount of two thousand dollars ($2,000) or ten percent (10%) of the wages earned by the youth apprentice, whichever is less, against the tax imposed by the Income Tax Act of 1929, § 26-51-101 et seq., for each such apprentice.
(2) (A) A partner's or member's distributive share of the credit shall be determined by the partnership or limited liability company agreement, unless the agreement does not have substantial economic effect or does not provide for the allocation of credits.
(B) If the agreement does not have substantial economic effect or does not provide for the allocation of the credit, the credit shall be allocated according to the partner's or member's interest in the partnership, pursuant to federal 26 U.S.C. § 704(b), as in effect on January 1, 1995.
(c) (1) To claim the benefits of this section, a taxpayer must obtain a certification from the office certifying to the Revenue Division of the Department of Finance and Administration that the taxpayer has met all the requirements and qualifications set forth in this section.
(2) The certification to the department shall include the total amount of wages paid to each youth apprentice employed by the taxpayer or 501(c)(3) corporation in the taxable year for which the taxpayer claims the credit provided in this section.
(d) (1) The amount of the credit that may be used by a taxpayer for a taxable year may not exceed the amount of individual or corporate income tax otherwise due.
(2) Any unused credit may be carried over for a maximum of two (2) consecutive taxable years.
(e) If the business is an S corporation, the pass-through provisions of § 26-51-409, as in effect for the taxable year the credit is earned, shall be applicable.
(f) A taxpayer who trains a youth apprentice in a registered youth apprenticeship program as provided in subsection (b) of this section shall be entitled to the tax credit provided in this section for such youth apprentice, even though the apprentice receives his or her wages for such training from a 501(c)(3) corporation.
(g) (1) The division shall promulgate such rules and regulations as may be deemed necessary to carry out the purposes of this section.
(2) The division shall consult with the office during the promulgation of the rules and regulations.
Section: Previous 26-51-502 26-51-503 26-51-504 26-51-505 26-51-506 26-51-507 26-51-508 26-51-509 26-51-511 26-51-512 26-51-513 26-51-514 NextLast modified: November 15, 2016