On Thursday, the Alabama State Senate passed the Apprenticeship Tax Credit by Senator Arthur Orr (R-Decatur) to encourage companies to train apprentices.

The legislation provides a $1,000 tax credit to companies that train an apprentice for at least seven months in a tax year. Sen. Orr’s economic development bill is part of the Alabama Senate Republican 2015 legislative agenda. SB109 now goes to the House for consideration.

Under the Apprenticeship Tax Credit Act, any worker could qualify as an apprentice, provided they meet minimum age standards for employment, which is 16 in most Alabama counties. A company may claim the tax credit for a maximum of four years for each apprentice.

“I don’t believe that government can create jobs, but it can set policy that encourages companies to train individual with skills that will help that company and the employee,” remarked Orr. “This tax credit will encourage companies to train more people, which will lead to more job opportunities for the apprentices.”

States across the country, including other Southern states, already have apprenticeship training tax credits available.