22 GCA § 10108: Tax Credit for Apprenticeship Program Participants.

(a) Any business that employs apprentices duly enrolled and registered under the terms of the Program is entitled to a tax credit against its business privilege tax liability equal to fifty percent (50%) 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;

(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; and

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

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