Registered apprenticeship programs are one of the most effective workforce development tools available to Texas employers, and multiple state and federal funding programs support employers who create or participate in apprenticeship programs. This guide covers the grants, tax credits, and resources available to Texas employers offering apprenticeships.
What Is a Registered Apprenticeship?
A registered apprenticeship is a structured, employer-driven training program that combines on-the-job learning with related technical instruction. Programs are registered with the U.S. Department of Labor or a recognized State Apprenticeship Agency. Key characteristics:
- Apprentices earn wages while learning on the job
- Programs include structured classroom or technical instruction
- Completion results in a nationally recognized credential
- Programs typically last 1-4 years depending on the occupation
- Employers design the program standards and training content
Texas Apprenticeship Programs
Apprenticeship Texas
The Texas Workforce Commission supports registered apprenticeship through the Apprenticeship Texas initiative. TWC provides technical assistance to employers developing new apprenticeship programs, connects employers with apprenticeship intermediaries, and coordinates with federal apprenticeship resources.
Skills Development Fund
The Skills Development Fund can be used to support apprenticeship programs when the training is delivered through a partnership with a public community or technical college. Employers can use SDF grants to fund the related technical instruction component of their apprenticeship program, covering training costs, curriculum development, and instructor expenses.
JET Grants
Jobs and Education for Texans (JET) grants fund equipment purchases at Texas public community and technical colleges for career and technical education programs. When a college partners with employers on apprenticeship programs, JET-funded equipment can support the technical instruction component of the apprenticeship.
Federal Apprenticeship Funding
Apprenticeship Building America (ABA) Grants
The U.S. Department of Labor periodically issues competitive grants to expand registered apprenticeship programs. These grants typically fund intermediary organizations, industry associations, and workforce boards that help employers develop and register apprenticeship programs. Texas employers can benefit by connecting with grant recipients in their region or industry.
WIOA Apprenticeship Funding
The Workforce Innovation and Opportunity Act (WIOA) recognizes registered apprenticeship as an approved training provider. This means local workforce boards can use WIOA funds to support apprentices, including:
- Individual Training Accounts for related technical instruction
- On-the-Job Training reimbursements for employers
- Supportive services for apprentices (transportation, tools, work clothing)
National Apprenticeship Act Provisions
Federal policy has increasingly supported apprenticeship expansion. Employers should check current DOL programs and appropriations, as new funding opportunities for apprenticeship are regularly announced.
Tax Credits for Apprenticeship Employers
Work Opportunity Tax Credit (WOTC)
While WOTC does not specifically target apprentices, employers hiring apprentices who also belong to WOTC-eligible target groups — such as veterans, SNAP recipients, or ex-offenders — can claim the federal tax credit. WOTC can provide up to $2,400-$9,600 per qualifying hire depending on the target group.
Federal Apprenticeship Tax Credit Proposals
A federal apprenticeship tax credit has been proposed multiple times in Congress. While no permanent federal apprenticeship credit exists as of this writing, employers should monitor legislative developments, as this is an active policy area.
Industries Using Apprenticeship in Texas
While apprenticeship is traditional in construction and manufacturing, Texas employers across many industries now use registered apprenticeship:
- Construction: Electricians, plumbers, pipefitters, HVAC technicians, ironworkers, and carpenters.
- Manufacturing: CNC machinists, industrial maintenance technicians, welders, and tool-and-die makers.
- Healthcare: Medical assistants, pharmacy technicians, and dental assistants.
- Technology: Cybersecurity analysts, software developers, and IT support specialists.
- Energy: Power plant operators, lineworkers, instrumentation technicians, and process operators.
How to Start an Apprenticeship Program
- Define the occupation and training standards. Identify the skills apprentices need and the on-the-job and classroom training required.
- Partner with a community college. Identify a public community or technical college to deliver related technical instruction and potentially access Skills Development Fund grants.
- Register the program. Register with the U.S. Department of Labor's Office of Apprenticeship.
- Connect with your local workforce board. Explore WIOA funding and other workforce development resources.
- Recruit apprentices. Use Workforce Solutions offices, college career services, and industry associations to find candidates.
Find Programs That May Fit Your Business
Texas employers using apprenticeship can access workforce training grants, tax credits, and other incentive programs simultaneously. Our free screening report checks your business against 150+ verified programs — grants, tax credits, loans, and incentives — and shows you which ones may match. Start your free screening →