Are you a business owner looking to invest in the next generation of professionals while also benefiting from valuable tax credits? The Intern and Apprentice Recruitment Act (IARA) might be the perfect opportunity for you!
Starting July 1, 2024, the Preliminary Application for IARA opened, offering a fantastic chance for eligible taxpayers to claim a tax credit against their state tax liability for hiring interns or apprentices. Here’s everything you need to know to get started.
What is IARA?
The Intern and Apprentice Recruitment Act (IARA) is a tax credit program that began on January 1, 2024, following its passage by the 2023 General Assembly in House Bill No. 417. This program is designed to encourage businesses to hire interns and apprentices by offering significant tax incentives.
Funding Limits:
- $1,500 tax credit per eligible intern or apprentice.
- $9,000 maximum tax credit per year per eligible company.
- $1 million program cap in tax credits per year.
Program Criteria:
To qualify for the tax credit, businesses must meet specific criteria:
- Interns:
- Must work a minimum of 60 hours per month for 2 consecutive months during the tax year for which the credit is claimed.
- Must be enrolled in a public or private Missouri institution and have completed at least 30 credit hours.
- Apprentices:
- Must be participating in a qualified US Department of Labor apprenticeship program.
- Must have completed one year in the apprenticeship program.
- Must complete 144 hours of required technical instruction each year of the apprenticeship.
- Must complete a minimum of 2,000 hours of on-the-job training throughout the entire apprenticeship.
Additionally, the total number of interns or apprentices employed during the tax year must exceed the average number employed over the previous three years.
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Important Notes:
- If the total amount of tax credits applied for in a year exceeds $1 million, priority will be given to businesses that have been established for less than five years. The remaining tax credits will be distributed based on the order in which they are claimed.
- Tax credits issued through this program are not refundable and cannot be assigned, transferred, sold, or otherwise conveyed.
- Tax credits claimed cannot be carried forward to any subsequent tax year.
How to Apply:
To help you prepare for the application process, a video tutorial covering the entire process is now available. This tutorial will guide you through each step, ensuring that you have all the necessary information to apply successfully.
Learn More:
To find out more about the IARA program, including detailed eligibility criteria and application guidelines, visit the program webpage.