Tax Credit for Pre-Apprenticeship Program

Participants.

(a)Any business that provides skilled trainers to the Eligible Training Provider List

(ETPL)or to a non-profit organization working with a registered ETPL on Guam and employs skilled trainers shall be entitled to a tax credit against its business privilege tax liability equal to one hundred percent (100%) of the eligible costs paid or incurred by the business; provided, that:

(1)the apprenticeship training program teaches an approved occupation under § 10104 of this Article; COL 1/26/2024 CH. 10 APPRENTICESHIP PROGRAMS

(2)the apprentice completes a training stage of an apprenticeship program as determined by DOL following USDOL-OA standards. No tax credit shall be claimed by a program participant for an apprentice unless the apprentice satisfactorily completes the current level of training;

(3)the eligible costs were paid or incurred during the apprentice’s participation in the Program;

(4)the eligible costs were paid or incurred within the previous three

(3)calendar years from the date the costs are submitted to DOL for certification. Costs paid or incurred earlier than the three

(3)calendar years preceding the date the costs are submitted to DOL shall not be certified as eligible costs;

(5)no business or program participant holding a Qualifying Certificate

(QC)shall claim tax credits pursuant to this Section. The Guam Economic Development Authority shall assist the Director in determining whether a participant may claim the credit;

(6)the apprentice must work a minimum of one hundred twenty

(120)hours per month at the trade;

(7)the apprentice must be paid the prevailing wage required by the Program, which shall be a graduated percentage of journeyman wages as outlined in the apprenticeship standards;

(8)pre-apprentices are not counted as apprentices, and wages earned by pre-apprentices are not eligible for this tax credit;

(9)apprenticeship training costs paid by Workforce Innovation and Opportunity Act

(WIOA)funds, Department of Labor Manpower Development Fund

(MDF)funds, Hotel/Restaurant Industry Training Program funds, and any training costs paid by the government of Guam or federal funding shall not be eligible Program costs and shall not be applied as a tax credit; COL 1/26/2024 CH. 10 APPRENTICESHIP PROGRAMS

(10)skilled trainers must provide training in all apprenticeable occupations, as defined in the Occupational List prioritized by the United States Department of Labor, to participants who are unemployed and unskilled, unemployed and underskilled veterans, participants of residential substance abuse treatment programs, participants of the Temporary Assistance for Needy Families Federal Benefits Program, participants of the Able-Bodied Without Dependents Program, or eligible participants of the Work Credit program authorized in 9 GCA § 81.10;

(11)the application of the one hundred percent (100%) tax credit as described in this Section shall apply only when a minimum of ten

(10)pre-apprentice applicants are qualified as described in Subsection

(j)of this Section, and the preapprentice applicants, as defined herein, are registered with an approved training ETPL or non-profit organization; and

(12)the term of the pre-apprentice cycle shall extend up to a term of no less than six

(6)months for participating nonprofit and for-profit organizations with Workforce Innovation Opportunity Act

(WIOA)agreements.

(b)A program participant may only carry forward the tax credit if allowed by the Guam Department of Revenue and Taxation procedures.