Montana Administrative Register Notice 24-21-332 No. 2   01/26/2018    
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                                               OF THE STATE OF MONTANA


In the matter of the adoption of New Rule I pertaining to employer apprenticeship tax credit







TO: All Concerned Persons


            1. On February 16, 2018, at 1:30 p.m., the Department of Labor and Industry will hold a public hearing in the Lewis Room, basement of the Walt Sullivan Building, 1315 Lockey Avenue in Helena, Montana, to consider the proposed adoption of the above-stated rule.


2. The Department of Labor and Industry will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Labor and Industry no later than 5:00 p.m. on February 12, 2018, to advise us of the nature of the accommodation that you need. Please contact Jenny Harris, Workforce Services Division, Department of Labor and Industry, P.O. Box 1728, Helena, Montana, 59624-1728; telephone (406) 444-7895; fax (406) 444-3037; Montana Relay Service *711; or e-mail JHarris@mt.gov.


3. The rule as proposed to be adopted provides as follows:


NEW RULE I EMPLOYER APPRENTICESHIP TAX CREDIT  (1)  An employer may submit an application to the department to claim the apprenticeship tax credit after an apprentice has completed the state apprenticeship and training program's probationary period or after the apprentice has worked for six months, whichever is earlier. An application must be for an active apprentice registered with the state apprenticeship and training program.

(2)  The department may approve the credit for an apprentice for a total of up to 5 years, upon verification by the the state apprenticeship and training program that the apprentice has timely progressed towards completion of the requirements called for in the apprenticeship agreement.

(3)  If an apprentice works for more than one employer in a calendar year, the primary employer will be approved for the credit.  A primary employer is the employer who has provided at least 51% of the registered program’s training hours for that apprentice or has paid the majority of wages to the apprentice during their apprenticeship period.

(4)  Any employer claiming the tax credit for a veteran apprentice shall obtain and keep a record of documentary proof that the apprentice is a veteran. The employer is responsible for obtaining that proof. The employer shall represent to the department whether an apprentice is a veteran for purposes of applying for the credit.

 (5)  The department will issue letters of approval or denial of the tax credit to the employer in the month of December. The department will forward a list of all approved credits to the Department of Revenue, including information on which employers are entitled to a credit for employment of a veteran. 


AUTH: 39-6-101, 39-6-109, MCA

IMP:     39-6-109, MCA


REASON: There is reasonable necessity for the department to adopt New Rule I to implement House Bill 308, Chapter 380, Laws of 2017.  The department will review applications to claim the credit from employers. The rule proposes to clarify which employer will be entitled to the credit if an apprentice works for more than one employer. The department will also require the employer to verify whether a particular apprentice qualifies as a veteran or not. 


            4. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Jenny Harris, Workforce Services Division, Department of Labor and Industry, P.O. Box 1728, Helena, Montana, 59624-1728; fax (406) 444-3037; or e-mail JHarris@mt.gov, and must be received no later than 5:00 p.m., February 23, 2018.


5.  The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request, which includes the name and e-mail or mailing address of the person to receive notices, and specifies the particular subject matter or matters regarding which the person wishes to receive notices. Such written request may be mailed or delivered to the Department of Labor and Industry, attention:  Mark Cadwallader, 1315 E. Lockey Avenue, P.O. Box 1728, Helena, Montana 59624-1728, faxed to the department at (406) 444-1394, e-mailed to mcadwallader@mt.gov, or may be made by completing a request form at any rules hearing held by the agency.


6. The bill sponsor contact requirements of 2-4-302, MCA, apply and have been fulfilled. The primary bill sponsor was contacted by e-mail on December 21, 2017.


7. With regard to the requirements of 2-4-111, MCA, the department has determined that the adoption of the above-referenced rule will significantly and directly impact small businesses. Information regarding the small business impact is on file with the department.  


            8. The Office of Administrative Hearings has been designated to preside over and conduct this hearing.




Mark Cadwallader

Alternate Rule Reviewer


Galen Hollenbaugh, Commissioner



            Certified to the Secretary of State January 16, 2018.


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