Massachusetts Expands Apprenticeship Tax Credits Supporting AI-Related Program Credentials

Massachusetts has expanded the Registered Apprenticeship Tax Credit to cover AI-related credentials.

On Tuesday, Jan. 13, the Healey administration announced that employers offering apprenticeship programs with AI-related credentials can now pursue a state tax credit valued at up to $4,800 per participant.

New eligible apprentice roles include AI data annotators, cloud support specialists, AI security specialists, machine learning data curators, and AI consultants. The state also said it would expand its apprenticeship tax credit into defense manufacturing and other manufacturing sectors.

Apprenticeships provide paid training and classroom instruction toward industry credentials. The state has also reduced the annual registered apprenticeship sponsor fee from $300 to $250.

“By cutting fees and expanding tax credits, we're making it even easier for employers and labor unions to invest in apprentice programs,” Undersecretary of Labor Josh Cutler said in a statement shared with the Worcester Business Journal. “Registered apprenticeship is a time-tested model, and these changes help make Massachusetts a more affordable place to build a skilled workforce.”

Massachusetts reports more than 500 active registered apprenticeship programs serving over 10,000 apprentices. The majority of them are in construction and building trades, with significant participation in health care, education, life sciences, and advanced manufacturing.

Industry groups welcome the changes, noting they will especially help small and medium-sized employers address labor shortages. In addition, these latest changes will help lower barriers and reduce costs for employers and labor unions to invest in apprenticeships.