North Carolina allocated $12 million over multiple years to expand apprenticeships through Session Law 2021-180 §6.14. The funding provides direct incentives to employers and apprentices from 2022 through 2026 through a three-part structure. The program specifically targets small businesses (500 or fewer employees) in the state's Tier 1 and Tier 2 counties and focuses on high-demand occupations. Understanding the program mechanics, eligibility requirements, and coordination with federal funding is essential for maximizing these benefits through the December 31, 2026 sunset date.
Section 1: The Three Funding Components
North Carolina's incentive package combines three distinct financial benefits to reduce the cost of apprenticeship programs.
Component 1: Employer Training Subsidy
Employers receive $2,000 per year per apprentice to help offset the costs of onboarding and training. This direct payment can cover expenses like mentor time, training materials, and other infrastructure costs associated with bringing new apprentices into the workforce.
Component 2: Education Scholarship
The program provides $2,500 per year per apprentice specifically for tuition, books, and fees. This money ensures the apprentice's related instruction is tuition-free and that required textbooks or course fees are covered. The funds function as a scholarship administered through the community college or training provider, meaning apprentices pay nothing out-of-pocket for their education.
Component 3: Wage Reimbursement
Employers receive 50% wage reimbursement for the apprentice's wages during each training period, subject to hourly caps:
- $15/hour cap for adult apprentices
- $14/hour cap for high school apprentices
This functions similarly to an On-the-Job Training (OJT) subsidy. The employer pays the wages, then receives half back for the hours the apprentice spent training, within the hourly limits.
How the caps work in practice:
- If a high school apprentice earns $12/hour, North Carolina reimburses $6/hour
- If an adult apprentice earns $18/hour, North Carolina reimburses $7/hour (half of the $14 cap)
When you add up all three components, an employer could receive up to ~$4,500 per year plus half of wages per apprentice. This represents a substantial subsidy package for workforce development.
Section 2: Eligibility Requirements
Business Qualifications
To qualify for the incentive package, businesses must meet specific criteria:
- 500 or fewer employees
- Located in or hiring apprentices from Tier 1 or Tier 2 counties (the state's less urban counties)
- Operating in high-demand occupations
Apprentice and Program Qualifications
The incentives apply specifically to fully registered apprentices in Registered Apprenticeship programs. Pre-apprenticeships are not eligible—the program focuses exclusively on full apprenticeships.
Apprentices must have been hired on or after July 1, 2022, and the incentives can be received for each year the apprentice remains in the program. Most apprenticeships in the targeted occupations last between 1 to 4 years.
Critical Timing and Deadlines
At this stage, only employers or programs that acted before the end of 2024 and properly obligated funds are eligible to use apprenticeship expansion funds through the final spending deadline of December 31, 2026. Employers who did not act before the 2024 cutoff cannot newly obligate or receive these funds now.
Section 3: Program Results and Impact
The $12 million infusion has led to record numbers of new apprentices in North Carolina. ApprenticeshipNC reported more than 16,000 total participants and more than 5,200 new enrollments as of late 2025. Currently, hundreds of employers across the state have tapped into these funds, spurring growth especially in rural areas and new sectors.
Section 4: Coordinating with Federal WIOA Funding
North Carolina's state incentives already braid multiple elements (tuition, wage, training subsidy) into one package. However, employers can add additional federal funding sources if properly coordinated.
Avoiding Duplicate Reimbursement
The most important coordination rule: employers cannot exceed 100% wage reimbursement when combining funding streams. If an apprentice makes $17/hour, the state wage match only covers up to $14 (so half of $14 equals $7/hour reimbursement). A local workforce board might agree to reimburse the other half of the difference for eligible participants, or extend the duration beyond what state funds cover.
For example, if the state limits reimbursement to 40 hours per week for one year, WIOA could possibly cover On-the-Job Training beyond that timeframe if needed.
Additional Braiding Opportunities
Veterans: Veterans in North Carolina can stack the GI Bill housing allowance on top of the state incentive package, giving them even more income while apprenticing.
High school apprentices: If a high school apprentice is dual enrolled in college classes, the dual enrollment program covers their tuition while in high school, then the apprenticeship tuition waiver covers after graduation. This creates two different funding streams accomplishing free tuition at different stages.
Workforce board supportive services: Many local workforce boards provide supportive services like gas cards or tools while the state covers the wage match, avoiding duplication of the same expense.
Coordination Process
North Carolina has already done much of the funding integration behind the scenes, but employers should coordinate with their ApprenticeshipNC consultant and local NCWorks career center to map out who pays for what.
Section 5: Managing Documentation and Compliance
Multi-Source Tracking Requirements
When combining state incentives with federal WIOA funding, employers must track which funding source covers which costs and document that wage reimbursement from all sources combined does not exceed 100% of actual wages paid.
Employers coordinate with ApprenticeshipNC consultants and local NCWorks career centers to ensure proper documentation. The state has already done much of the integration behind the scenes to minimize complex braiding requirements, but proper recordkeeping remains essential through the 2026 sunset date.
Conclusion
North Carolina's Apprenticeship Expansion Incentive provides substantial financial support—up to ~$4,500 annually plus 50% wage reimbursement per apprentice—to small businesses in Tier 1 and Tier 2 counties. The program runs through December 31, 2026, for employers who properly obligated funds before the end of 2024. Proper coordination with ApprenticeshipNC consultants and local NCWorks career centers ensures compliance across multiple funding sources while maximizing benefits.
For comprehensive information on braiding North Carolina's incentives with federal funding sources like WIOA, Perkins V, and Pell Grants, download the complete Apprenticeship Funding Guide.
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