May 24, 2024 Less than a minute read

Apply for intern and apprentice tax credits

A preliminary application process will open on July 1 for a new tax credit program aimed at incentivizing businesses to grow the number of interns or apprentices they employ.

The Intern and Apprentice Recruitment Act (IARA) is designed to create a stronger workforce with the skills and on-the-job training needed to be successful. The IARA allows businesses to claim a tax credit for new interns or apprentices hired. Businesses can only claim the tax credit for interns or apprentices hired in addition to the company’s historic average number of interns or apprentices.

To help prepare potential applicants, the Missouri Department of Economic Development has released a video tutorial covering the application process.

The tax credit program began in January after Missouri lawmakers passed a bill in 2023 creating the IARA. The Missouri Chamber of Commerce and Industry supported the legislation, calling it a vital tool in encouraging both large and small businesses to consider offering internships and apprenticeships.

Rep. Brad Christ (R-St. Louis County), who sponsored the IARA legislation, said there is currently an internship gap in Missouri that this program will help address.

“We have tremendous universities in our state that create a strong pipeline of in- and out-of-state undergraduates,” Christ said. “However, we are a net exporter of many undergraduates. The data shows we lose roughly 20,000 every year out of state from those universities. The top two metros, St. Louis and Kansas City, have lower internship participation rates than our surrounding competitive Midwestern peers.”

In contrast, Missouri ranks among the top 10 states in several apprenticeship categories, including completed apprenticeships and new apprentices.

To learn more about the IARA, including participation criteria and how to apply, visit the program webpage.


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