Contacts
Contact DAS RATC
The Details
How the tax credit works
The Registered Apprenticeship Tax Credit (RATC) helps Registered Apprenticeship sponsors save money while investing in apprentices. Here’s how it works:
- Sponsors can get a tax credit worth 50% of an apprentice’s wages in a taxable year, up to $4,800 per apprentice.
- Sponsors can qualify for up to $100,000 in total credits each year.
- The credit can be claimed for the same apprentice for up to two consecutive years, if eligible.
- If the RATC is greater than the taxes owed, sponsors can choose to have the remaining balance refunded.
Eligibility
To qualify for the RATC, the following conditions must be met:
- The apprentice’s primary place of employment must be in Massachusetts.
- The apprentice must be employed by the taxpayer for at least 180 calendar days in the taxable year.
- The employer must be registered with DAS as a program sponsor and have an approved apprenticeship agreement for each apprentice claimed.
- Applicants must be current with all obligations to the Commonwealth and in good standing with the Department of Revenue. A Department of Unemployment Assistance Certificate of Compliance is also required.
- The apprentice must be in an eligible occupation. For the full list, see DAS Issuance No. 26-12162024.
Note: Licensure-related restrictions have been lifted: Apprentices required to register by licensure or state regulation are now eligible. However, once 50% of available funding is reached, DAS may prioritize applications that align with industry expansion goals.
How to apply
- Make sure you have a current Certificate of Compliance from DUA and a Certificate of Good Standing from DOR.
- Fill out the RATC application online.
Next steps
DAS will review your application
- DAS will review RATC tax credit applications on a rolling basis and typically respond within 30 days of submission.
- Applicants should submit one application for all apprentices for whom they intend to apply for the credit.
- If approved, DAS will issue a certificate which will enable the taxpayer to claim the credit with the Massachusetts Department of Revenue.