Intern and Apprentice Recruitment Act (IARA)

Alert

Preliminary IARA Applications are accepted between July 1 and November 15 of the tax year for which credits are being claimed. Full IARA Applications are accepted between January 1 and February 15 of the year following the tax year for which credits are claimed.

Description

The Intern and Apprentice Recruitment Act (IARA) passed by the 2023 General Assembly in House Bill No. 417 allows eligible taxpayers to claim a tax credit against the taxpayer’s state tax liability for hiring interns or apprentices, provided eligibility criteria is met.

Funding Limits:

  • $1,500 tax credit per eligible Intern or Apprentice

  • $9,000 maximum tax credit per year per eligible company

  • $1 million program cap in tax credits per year

Program Criteria:

  • The total number of interns or apprentices employed for the tax year that the credit is claimed must exceed the average number of interns or apprentices employed over the previous 3 years.
  • Interns must work a minimum of 60 hours per month for 2 consecutive months during the tax year for which the credit is claimed. Must be enrolled in a public or private Missouri institution and have a minimum of at least 30 credit hours.
  • Apprentices must be participating in a qualified US Department of Labor apprenticeship program, must have completed one year in the apprenticeship program, and completed 144 hours of required technical instruction each year of the apprenticeship and a minimum of 2,000 hours of on-the-job training throughout the entire apprenticeship. 

If the total amount of tax credits applied for in a year exceeds $1 million dollars, priority shall be given to applicants that have been in business for less than five years, with the remaining tax credits to be distributed based on the order in which the tax credits are claimed. 

Tax credits issued through this program are not refundable and shall not be assigned, transferred, sold, or otherwise conveyed. Tax credits claimed may not be carried forward to any subsequent tax year. 

Do I Qualify?

Eligible Applicant Entities:

  • Individual [Business Owner]
  • Firm
  • Partner in a firm
  • Corporation
  • Partnership
  • Shareholder in an S corporation
  • Member of a limited liability company

Eligible Applicant Entities are subject to the state income tax imposed under chapter 143, 147, 148, or 153, excluding the withholding tax imposed under sections 143.191 to 143.265 and that engages in business in the apprentice’s or intern’s chosen field of study. 

How Do I Apply?

  1. Review the Intern and Apprentice Recruitment Act Guidelines 
  2. Sign-in or create an account in Submittable 
  3. Complete the Preliminary IARA Application and submit by November 15, 2024
  4. Preliminary IARA Applications will be reviewed for completeness and accuracy by DED staff and questions or concerns will be communicated to the applicant via Submittable
  5. If the Preliminary IARA Application is accepted by DED, complete the Full IARA Application and submit by February 15, 2025

Need Help?

Email: IARA@missourionestart.com

Phone: 573-526-9239

Documents

Program Notes

Intern and Apprentice Recruitment Act Informational Webinar - January 10, 2024