Missouri Gov. Mike Parson, earlier this week, signed into law legislation that allows companies to claim tax credits for each paid intern or paid apprentice they hire. These Missouri tax credits for internships and apprenticeships will assist the state in recruiting and retaining young talent.
Missouri Tax Credits For Internships And Apprenticeships: What Is It?
On Tuesday, Missouri Gov. Parson signed legislation, called the Intern and Apprentice Recruitment Act, which is included in House Bill 417. This legislation, which easily passed the legislature earlier this year, encourages businesses to boost the number of interns or apprentices.
The new legislation “will help increase apprenticeship opportunities, strengthen our workforce, and give Missourians the skills and on-the-job training they need to be successful in their chosen careers,” Gov. Parson said.
Under this new legislation, companies will get a $1,500 tax credit for each paid intern or apprentice up to $9,000 for six such positions. A point to note is that the Missouri tax credits for internships and apprenticeships apply only to newly created positions.
Moreover, the Intern and Apprentice Recruitment Act creates a qualifying intern period of sixty hours per month for two consecutive months and an apprentice period of 144 total hours in a calendar year. The total tax credit will be capped at up to $1 million per year.
Companies will have to submit applications to the Department of Economic Development.
The Intern And Apprentice Recruitment Act: How Does It Help?
Along with attracting new talent, the Missouri tax credits for internships and apprenticeships will also make the state more competitive when it comes to attracting businesses. Also, the tax credits will help address the issue of graduates from the state’s higher education institutions leaving the state.
A few months back, St. Charles County Republican Sen. Nick Schroer noted that the state loses about 20,000 students every year, who graduate from the state’s higher education institutions but go on to take their first jobs out of state.
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Schroer also pointed to national data that 70% of undergrad interns are offered full-time positions by the businesses in which they are doing their internship, and almost three-quarters of interns accept those full-time positions.
Research by Greater St. Louis, Inc. found that the internship participation rates of Missouri’s top two economies – St. Louis and Kansas City – is much lower than selected Midwestern peer metros.
The internship estimates, on a per capita basis, for the Nashville, Indianapolis, Minneapolis, Columbus, and Cleveland metro areas are higher than those in St. Louis and Kansas City metros.
Separately, Missouri is taking other steps to boost internships and apprenticeships in the state. During his State of the State address this year, Gov. Parson noted that the state achieved its goal of creating 20,000 new apprenticeships three years ahead of schedule.
Also, to make it easier for interns to search for companies, the Missouri Chamber operates a pair of websites that connects businesses with those seeking training.
This content was originally published here.
