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Money · 4 min read · Updated October 30, 2026

Does New York’s apprenticeship tax credit cover trade shops?

The short version
  • New York’s Empire State Apprenticeship Tax Credit pays $2,000 to $6,000 per registered apprentice per year.
  • But it excludes construction trades, unless the apprentice maintains a building the employer owns.
  • So most electrical, plumbing, HVAC and carpentry contractors can’t claim it for apprentices working on customers’ jobs.
  • The state says the credit runs through 2026. For trade shops, wage reimbursement programs are the money that actually applies.

If you’ve heard “New York pays you to train apprentices,” this is usually what people mean. Here’s what the credit is, and the catch that matters most for trade contractors.

What the credit is

The Empire State Apprenticeship Tax Credit (ESATC) is a credit against New York income or franchise tax for each qualified apprentice in a New York State registered apprenticeship program. According to the Department of Labor, it pays per apprentice, per year:

  • 1st year: $2,000 · 2nd: $3,000 · 3rd: $4,000 · 4th: $5,000 · 5th: $6,000
  • Higher amounts for apprentices who qualify as disadvantaged youth (ages 16–24 who meet certain conditions): $5,000 to $7,000 a year.
  • An extra $500 for each apprentice who has a mentor for the full year.

The apprentice has to be registered, have enrolled on or after January 1, 2018, and work full time (at least 35 hours a week) for at least six months of the year.

The catch: construction trades are excluded

The Department of Labor says the program covers in-demand occupations “excluding construction trades.” The one exception: construction-trade programs qualify if the apprentice works on the upkeep and maintenance of a facility the employer owns, like plant maintenance.

For a typical Long Island electrical, plumbing, HVAC or carpentry shop, apprentices work on customers’ homes and buildings, not on a building the shop owns. So most trade contractors can’t claim this credit for them. If you’re not sure where your shop falls, call the program before you count on the money.

Time is short

The Department of Labor says the credit is available through 2026, and that both the employer application and the final report for each apprentice are due by December 31 each year. Check whether it’s extended before planning around it for 2027.

How to apply, if you qualify

  1. Be the sponsor of (or an approved signatory to) a New York State registered apprenticeship program.
  2. Submit the Employer Application to the Department of Labor. If you’re eligible, they issue a preliminary certificate.
  3. Submit an Employer Final Report for each apprentice, usually available after July.
  4. The Department of Labor checks each apprentice and issues a final certificate with the credit amount.

Questions go to the program at 877-226-5724 or ESATC@labor.ny.gov.

Money that does apply to trade shops

Long Island’s workforce boards can reimburse part of a new hire’s wages while you train them, and that isn’t limited to non-construction jobs. See Getting paid to train a new hire on Long Island.

FirstHand · Long Island

Hours without the paperwork.

Your apprentices log hours on their phones and you approve the week in one tap. Meet your next apprentice at an open house. Founding shops: $49/mo, locked for life.

See how it works for shops
Sources
  1. NYS Department of Labor: Empire State Apprenticeship Tax Credit (P53, 3/26)
  2. NYS Department of Labor: Options for apprenticeship program sponsors

Requirements change. Always check with the program or office before you apply.