Arkansas employers and training providers can significantly reduce apprenticeship costs through two state funding programs that often go underutilized. The Construction Industry Craft Training Trust Fund provides grants to training providers, while the Apprenticeship Tax Credit offers direct tax relief for employers hiring apprentices.
This guide explains what's available, who qualifies, and how to access each program.
Understanding Arkansas's Apprenticeship Funding Landscape
Arkansas has developed several mechanisms to support apprenticeship and work-based training. Two primary state funding options serve different roles in the apprenticeship ecosystem.
The Construction Industry Craft Training Trust Fund supports training providers who deliver related technical instruction (RTI) for construction apprenticeships. The Arkansas Apprenticeship Tax Credit directly incentivizes employers who hire apprentices in Registered Apprenticeship programs. Training providers and employers can both benefit—and in many cases, the same apprenticeship program can leverage both funding streams simultaneously.
Construction Trust Fund Grants—For Training Providers
The Arkansas Office of Skills Development (OSD) administers grants through the Arkansas Apprenticeship Coordination Steering Committee. The Arkansas Construction Industry Craft Training Trust Fund is financed by a $0.50 surcharge per $1,000 of construction permit value. In FY2024, this fund had a budget of approximately $800,000 dedicated to apprenticeship training in construction trades.
The funding breaks down into four priority areas: curriculum development receives $640,000 (80%), outreach gets $60,000 (7.5%), equipment purchases receive $60,000 (7.5%), and instructor training gets $40,000 (5%).
Training providers delivering classroom instruction for Registered Apprenticeships in construction occupations can apply for these grants. Eligible expenses include instructor salaries, equipment purchases, and related instructional needs. Similar support may be available for non-construction apprenticeships through OSD's general grants.
The key benefit: these grants help training providers avoid passing costs onto apprentices or employers, keeping apprenticeship training tuition-free in many cases.
Employer Tax Credit—$2,000 Per Apprentice
Arkansas offers a state income tax credit to incentivize employers to hire apprentices. The credit amount is $2,000 per apprentice, or 10% of the apprentice's wages—whichever is less—up to $10,000 total per employer per year.
The program covers both USDOL-registered apprentices and state-registered apprentices (once Arkansas's State Apprenticeship Agency is fully operational). It specifically includes youth apprentices age 16 and older.
To claim the credit, employers must obtain certification from OSD confirming the apprentice and program qualify, then claim the credit when filing state taxes. This credit has been in place since 2017 and was recently extended.
Here's how the math works: A company with 5 apprentices could receive up to $10,000 off its state tax bill that year. The credit effectively reimburses employers for a portion of on-the-job training costs through tax relief.
Documentation Requirements for Both Programs
Accessing both funding streams requires tracking different documentation. Trust Fund grant applications require proof of program registration, training delivery records, and detailed expense documentation. Tax credit claims require OSD certification, proof of apprentice employment, and wage records for each apprentice.
Managing multiple funding sources means maintaining separate compliance documentation for each. Craft Connect, a free apprenticeship data management platform, centralizes OJT hours, RTI completions, and program records in one audit-ready system. Built-in compliance reporting can export data formatted for USDOL, WIOA, and state requirements—helping programs document what each funding source needs without juggling spreadsheets. For teams ready to use these incentives, our team can clarify structure, documentation, and funding strategy.
What's Changing in Arkansas
In 2025, Arkansas passed Act 695, establishing a State Apprenticeship Agency under OSD and directing it to apply for federal recognition by the end of 2025. This will bring more federal apprenticeship dollars directly to Arkansas through State Apprenticeship Expansion (SAE) formula grants.
For employers, all existing incentives—including the tax credit—remain in place. Arkansas's "Apprenticeship Works" initiative in late 2024 highlighted that companies can leverage a variety of funding avenues when launching programs.
Take Action
Arkansas provides substantial funding for apprenticeship programs through both training provider grants and employer tax credits. If you're running construction apprenticeships, contact the Arkansas Office of Skills Development about Trust Fund grant eligibility. If you're an employer hiring apprentices, start the OSD certification process now to claim credits when you file taxes.
For a complete breakdown of federal and state apprenticeship funding options—including WIOA, Perkins V, Pell Grants, and programs in six additional states—download the Definitive Guide to Apprenticeship Funding.
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