Kansas Tax Credit and Apprenticeship Office Support Manufacturing Training Programs

Key Takeaways:
  • Kansas supports manufacturers with tax credits and apprenticeship programs to train workers for modern, technology-driven jobs.
  • The Kansas Office of Registered Apprenticeship offers grants and resources to help businesses create effective apprenticeship programs.
  • Manufacturers use apprenticeship programs to reskill current employees and train new hires in essential skills for today’s digital manufacturing environment.

 

Though unemployment rates are beginning to moderate in many industries and other regions of the country, local manufacturers are still struggling to hire the qualified workers they need as the Kansas unemployment rate continues to hover at a tight 2.8%.  

But a strong synergy between the manufacturing industry and state government in Kansas has helped build strong public support for tax credits and apprenticeship programs that accomplish two important goals – they help educate and train workers for specific jobs, which in turn helps fill those jobs for employers. 

Moreover, community colleges and technical schools are building collaborative training programs with local and regional companies that need trained employees. Many community colleges and technical schools are working directly with manufacturers, developing programs that teach precisely the skills that those companies need.  

These programs allow student employees to work and make an income while they are acquiring the skills they need. In many cases, employers pay for the classes, which creates a strong recruiting incentive when they are looking for new employees. 

As increasingly more manufacturers are digitizing their manufacturing, using robotics and computer technology to run production processes, they need workers who are trained in how to manage those tools. It’s a whole new set of skills. The days of people working along production lines are a thing of the past in most industries. 

Kansas Support for Apprenticeship Programs 

Support for Kansas companies that want to implement apprenticeship programs includes: 

  • Apprenticeship Tax Credit – Under the Kansas Apprenticeship Tax Credit, for tax years 2023 through 2025, an employer who hires a qualified apprentice (who has entered into a registered apprenticeship agreement), can claim a credit of up to $2,500 for each apprentice employed up to a maximum of 20 credits per year. Starting in tax year 2026, the credit rises to $2,750 for each apprentice hired.  
  • Kansas Office of Registered Apprenticeship – This state office supports the creation of apprenticeship programs through vetting proposed programs and advocating for the expansion of apprenticeship programs statewide. The office supports apprenticeships across a wide array of industries to benefit employers and jobseekers seeking occupational proficiency. The office also administers a variety of grant programs to help employers support apprenticeship programs. 
  • MeadowLARK Grant Program – Administered by the Office of Registered Apprenticeship Programs, these grants are supported by $6.3 million in U.S. Department of Labor funding to promote apprenticeship programs for the 2024 through 2026 fiscal years. MeadowLARK grants are contributing to the expansion of efforts focusing on high-demand, high-wage occupations to meet industry needs. 
  • Kansas Apprenticeship Tax and Grant Act – Effective July 1, 2023, the Kansas Apprenticeship Tax and Grant Act created several categories of grants to support targeted apprenticeship programs in for-profit businesses, nonprofit organizations and education programs producing teacher-educator apprentices.  
  • New Grant Opportunity – The Kansas Office of Registered Apprenticeship is offering grants to enhance registered apprenticeship programs, providing a significant opportunity for business owners. Grants of up to $200,000 are available to help cover costs related to technical instruction, on-the-job training and supportive services. This funding can assist you in developing and expanding your apprenticeship programs, ensuring a skilled workforce for your business. The application deadline is Aug. 25, 2024, so act quickly to take advantage of this valuable opportunity to invest in your company’s future. 

According to the Office of Registered Apprenticeship, Kansas currently boasts 4,400 individual apprentices working in 172 occupations for 180 sponsoring employers. 

For employers, apprenticeship programs open up the labor force, enabling them to hire workers who do not yet have the necessary skills but who will learn on the job while working as an apprentice. Many manufacturers say they have a hard time finding welders. They can hire someone who has no welding skills and put them through an apprenticeship while they’re on the job. 

In addition to working with post-high school students looking for permanent employment, some programs through local colleges and technical schools also are starting to work with high school students to give them exposure to different occupations and start teaching them skills.  

Reskilling & Upscaling 

The digital revolution in manufacturing, making robotics and analytics vital skills in many companies, has rendered some workers’ skills outdated. In response, employers are enrolling long-time employees in apprenticeship programs so they can learn new skills and technologies. They are using the apprenticeship programs to help reskill their workforce and upscale the company’s production processes. 

If you would like to discuss implementing an apprenticeship program at your manufacturing company, contact an Adams Brown advisor.