Turn Training Into a Tax Refund With Registered Apprenticeships
Hiring skilled workers is not getting easier. Many employers are feeling the pressure to fill roles, train new hires faster, and stay competitive in a tight labor market. Registered Apprenticeships offer a proven way to do all three.
Now, Texas employers have a new incentive to explore apprenticeships through the Apprenticeship Tax Refund Pilot Program from the Texas Workforce Commission.
At Workforce Solutions Rural Capital Area (WSRCA), we want employers across our region to know how this opportunity can help offset training costs while strengthening long-term workforce pipelines.
What Is the Apprenticeship Tax Refund Pilot Program?
The Apprenticeship Tax Refund Pilot Program allows eligible Texas employers to receive a refund on state taxes for hiring apprentices through a Registered Apprenticeship Program approved by the U.S. Department of Labor Office of Apprenticeship.
The program is designed to encourage more employers to invest in paid, hands-on training, especially in new or nontraditional occupations and in rural communities.
How the Tax Refund Works
Eligible employers may receive a state tax refund of up to $2,500 per qualifying apprentice.
To qualify:
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The apprentice must be enrolled in a Registered Apprenticeship Program
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The apprentice must have earned wages for at least seven months during the calendar year
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The employer must pay State of Texas sales and use taxes
The Texas Workforce Commission may approve tax refunds for up to 100 eligible employers each year. If applications exceed that number, priority may be given to employers who:
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Operate or offer apprenticeships in rural areas
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Train workers in new or emerging job fields
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Employ apprentices from priority populations such as transitioning foster youth, veterans, military spouses, and women
Who Can Receive Multiple Refunds?
Most eligible employers may receive a tax refund for one apprentice. However, employers who hire apprentices from priority populations may be eligible for refunds for up to six apprentices, provided at least half of those apprentices come from one or more of the qualifying groups.
This structure is designed to expand opportunity while rewarding employers who build inclusive training pathways.
How and When to Apply
Employers must complete their application for the Employer Application for Tax Refund Pilot Program through the TWC's DocuSign portal.
Key application details:
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Applications need to be submitted between January 1 and March 31
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For apprentices employed during the 2025 calendar year, applications must be submitted no later than March 31, 2026
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A separate application is required for each eligible apprentice
After submitting, employers should:
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Save the confirmation notice as proof of timely submission
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Retain records for four years if approved or one year if denied
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Ensure all application materials are stored securely
What to Expect After You Apply
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Applications are reviewed from April 1 through May 31
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Employers are notified once the review process is complete
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Application status questions may be directed to RATF@twc.texas.gov with the employer name and apprentice information
Why Apprenticeships Make Sense for Employers
Registered Apprenticeships help employers develop talent that fits their exact needs. Workers earn while they learn, productivity increases over time, and retention improves as skills grow.
For employers in rural and small-market communities, apprenticeships also provide a way to grow local talent, reduce turnover, and build a workforce that is invested in the community.
When paired with a tax refund, apprenticeships become an even stronger business strategy.
We Are Here to Help
At WSRCA, our Business Services team works alongside employers to:
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Explore whether Registered Apprenticeships are a good fit
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Connect with apprenticeship resources and partners
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Understand eligibility requirements and timelines
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Build training strategies that support long-term growth
If you're interested in apprenticeships or want to learn more about the Apprenticeship Tax Refund Pilot Program, we invite you to connect with us.
Training talent is an investment, and this program helps that investment go further.
TOPICS: Business Services
