HB 1366

                                                           Introduced Version
          HOUSE BILL No. 1366
                _____
              DIGEST OF INTRODUCED BILL
Citations Affected: IC 6-3.1-46.5; IC 25-1-24.5.
Synopsis: Workforce development incentives. Provides for a
nonrefundable apprenticeship tax credit (credit) for an eligible
employer. Provides that the amount of the credit is $2,500 for each
apprentice employed. Specifies procedures for claiming the credit.
Requires a board to issue a license, certificate, registration, or permit
to an individual to allow the individual to practice the individual's
occupation in Indiana if the individual satisfies certain conditions.
Effective: July 1, 2026; January 1, 2027.
                          Jackson C
   January 8, 2026, read first time and referred to Committee on Ways and Means.
2026  IN 1366—LS 6998/DI 125
                                                                                       Introduced
            Second Regular Session of the 124th General Assembly (2026)
 PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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                   HOUSE BILL No. 1366
    A BILL FOR AN ACT to amend the Indiana Code concerning
 professions and occupations.
     Be it enacted by the General Assembly of the State of Indiana:
1    SECTION 1. IC 6-3.1-46.5 IS ADDED TO THE INDIANA CODE
2 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
3 JANUARY 1, 2027]:
4    Chapter 46.5. Apprenticeship Tax Credit
5    Sec. 1. As used in this chapter, "department of workforce
6 development" means the department of workforce development
7 established by IC 22-4.1-2-1.
8    Sec. 2. As used in this chapter, "eligible employer" means a
9 person, corporation, limited liability company, partnership, or
10 other entity.
11    Sec. 3. As used in this chapter, "pass through entity" means:
12      (1) a corporation that is exempt from the adjusted gross
13      income tax under IC 6-3-2-2.8(2);
14      (2) a partnership;
15      (3) a trust;
16      (4) an estate;
17      (5) a limited liability company; or
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1(6) a limited liability partnership.
2     Sec. 4. As used in this chapter, "qualified apprenticeship"
3 means an apprenticeship that is:
4(1) certified as an industry recognized apprenticeship
5program by an entity determined to meet United States
6Department of Labor criteria;
7(2) registered with the United States Department of Labor; or
8(3) offered through or in conjunction with a program
9developed by the department of workforce development.
10     Sec. 5. As used in this chapter, "state tax liability" means a
11 taxpayer's total tax liability that is incurred under:
12(1) IC 6-3-1 through IC 6-3-7 (the adjusted gross income tax);
13and
14(2) IC 6-5.5 (the financial institutions tax);
15 as computed after the application of the credits that under
16 IC 6-3.1-1-2 are to be applied before the credit provided by this
17 chapter.
18     Sec. 6. As used in this chapter, "taxpayer" means an eligible
19 employer that has state tax liability.
20     Sec. 7. (a) Subject to subsection (b), a taxpayer that employs an
21 individual for at least seven (7) full months in a taxable year in a
22 qualified apprenticeship that has been certified by the department
23 of workforce development is eligible for a credit against the
24 taxpayer's state tax liability in the taxable year in which the
25 taxpayer employs the apprentice.
26     (b) An individual may not be certified as being employed in a
27 qualified apprenticeship for purposes of claiming the credit under
28 this chapter:
29(1) after the earlier of:
30(A) the date that falls four (4) years after the individual's
31first day of employment with the employer; or
32(B) the conclusion of the term of the apprenticeship
33position; or
34(2) if the individual was employed in another position with the
35employer immediately before beginning employment in the
36apprenticeship position.
37     Sec. 8. (a) The amount of the credit is two thousand five
38 hundred dollars ($2,500) for each individual employed in a
39 qualified apprenticeship position. However, and except as provided
40 in subsection (b), a taxpayer may not claim a credit for more than
41 one (1) individual employed in a qualified apprenticeship position
42 under this chapter in a taxable year.
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1     (b) A taxpayer may claim a credit under this chapter for up to
2 six (6) individuals employed in a qualified apprenticeship position
3 during a taxable year if at least half of the number of individuals
4 for whom the credit is claimed are:
5(1) foster children participating in a transition to independent
6living program with the department of child services;
7(2) military veterans;
8(3) spouses of individuals in the military; or
9(4) women.
10     Sec. 9. A taxpayer may apply to the department of workforce
11 development for a certification of a position as a qualified
12 apprenticeship in the manner provided by the department of
13 workforce development. The department of workforce
14 development may certify that a particular position is a qualified
15 apprenticeship or deny the request.
16     Sec. 10. A taxpayer is not entitled to a carryback or refund of
17 any unused credit.
18     Sec. 11. If a pass through entity is entitled to a credit under
19 section 7 of this chapter but does not have state tax liability against
20 which the tax credit may be applied, a shareholder, partner, or
21 member of the pass through entity is entitled to a tax credit equal
22 to:
23(1) the tax credit determined for the pass through entity for
24the taxable year; multiplied by
25(2) the percentage of the pass through entity's distributive
26income to which the shareholder, partner, or member is
27entitled.
28     Sec. 12. To apply a credit against the taxpayer's state tax
29 liability, a taxpayer must claim the credit on the taxpayer's annual
30 state tax return or returns in the manner prescribed by the
31 department. The taxpayer shall submit to the department the
32 information that the department determines is necessary for the
33 department to determine whether the taxpayer is eligible for the
34 credit.
35     SECTION 2. IC 25-1-24.5 IS ADDED TO THE INDIANA CODE
36 AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE
37 JULY 1, 2026]:
38     Chapter 24.5. Neighboring State Licensure Recognition
39     Sec. 1. (a) Except as provided in subsection (b), this chapter
40 applies to any license, certificate, registration, or permit issued by
41 a board under this article.
42     (b) This chapter does not apply to the issuance or regulation of
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1 any license, certificate, registration, or permit for the following:
2(1) Any health care practitioners, including a license,
3certificate, registration, or permit issued under:
4(A) IC 25-14;
5(B) IC 25-22.5;
6(C) IC 25-23;
7(D) IC 25-23.5;
8(E) IC 25-24;
9(F) IC 25-26;
10(G) IC 25-27;
11(H) IC 25-27.5; or
12(I) IC 25-33.
13(2) Architects under IC 25-4.
14(3) Engineers under IC 25-31.
15(4) Certified public accountants under IC 25-2.1.
16(5) Veterinarians or veterinary technicians under IC 25-38.1.
17     Sec. 2. Notwithstanding any other law, a board shall issue a
18 license, certificate, registration, or permit to an individual to allow
19 the individual to practice the individual's occupation in Indiana if,
20 upon application to the board, the individual satisfies the following
21 conditions:
22(1) Holds a current license, certification, registration, or
23permit from Ohio, Michigan, Illinois, or Kentucky, and that
24jurisdiction's requirements for a license, certificate,
25registration, or permit are substantially equivalent to or
26exceed the requirements for a license, certificate, registration,
27or permit of the board from which the applicant is seeking
28licensure, certification, registration, or a permit.
29(2) Can demonstrate competency in the occupation through
30methods as determined by the board.
31(3) Has held the license, certification, registration, or permit
32required under subdivision (1) for at least one (1) year.
33(4) Has not committed any act in any jurisdiction that would
34have constituted grounds for refusal, suspension, or
35revocation of a license, certificate, registration, or permit to
36practice that occupation in Indiana at the time the act was
37committed.
38(5) Is in good standing and has not been disciplined by the
39agency that has jurisdiction to issue the license, certification,
40registration, or permit.
41(6) Does not have a complaint or investigation pending before
42an occupational licensing board that relates to unprofessional
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1conduct or an alleged crime.
2(7) Pays any fees required by the board for which the
3applicant is seeking licensure, certification, registration, or a
4permit.
5(8) Has passed an examination for the license, certification,
6registration, or permit required under subdivision (1) if an
7examination was required in the jurisdiction.
8(9) Does not have a disqualifying criminal history.
9     Sec. 3. If an individual had any disciplinary action taken against
10 the individual or the individual's license, certification, registration,
11 or permit in the jurisdiction in which the individual holds a license,
12 certification, registration, or permit described in section 2(1) of this
13 chapter, the individual shall confirm, and provide evidence, that
14 the disciplinary action has been resolved and of the corrective
15 action taken.
16     Sec. 4. Nothing in this chapter may be construed to invalidate
17 any existing reciprocity agreement between a board in Indiana and
18 a board in another jurisdiction.
19     Sec. 5. An individual who receives a license, certification,
20 registration, or permit under this chapter is entitled to the same
21 rights and subject to the same obligations as an individual who
22 receives a license, certification, registration, or permit under this
23 title.
24     SECTION 3. [EFFECTIVE JULY 1, 2026] (a) IC 6-3.1-46.5, as
25 added by this act, applies to taxable years beginning after
26 December 31, 2026.
27     (b) This SECTION expires July 1, 2029.
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