7 min. read

Maryland pays employers to hire registered apprentices — through direct grants and a state tax credit. And with the registration of the nation’s first AI Project Management apprenticeship (MATC Program #2575, announced via Business Wire), those incentives now apply to a category of hire most employers assumed they had to buy at market rates: AI deployment talent. This post covers what exists, the figures, and — critically — the timing rules. Maryland leads because that is where the program is registered, but it is one example of a nationwide pattern; other states are covered below.

One note before the numbers: this is general information, not tax or legal advice. Incentive programs are funded by fiscal year and their terms change; confirm current availability with the Maryland Department of Labor and your tax professional before building them into a hiring decision.

The Maryland Apprenticeship Incentive Program (MAIP): up to $3,000 per apprentice

The headline program is the Maryland Apprenticeship Incentive Program, a grant established under the Registered Apprenticeship Investment for a Stronger Economy (RAISE) Act and launched by Governor Moore with $5 million for FY 2026. Registered Apprenticeship sponsors or employers may receive up to $3,000 for each newly registered adult apprentice — or up to $7,500 for each newly registered high-school-level apprentice — to offset eligible training expenses, including instructional costs (tuition, fees, books, materials), mentorship and on-the-job learning expenses, recruitment, disability accommodations, and supportive services.

The mechanics matter as much as the amount. Per the state’s program terms: applications must be submitted within 30 days of an apprentice’s initial registration with the Maryland Department of Labor Office of Apprenticeship; the apprentice must be within their first year; and the apprentice must remain employed and registered for at least seven months after the application is submitted before funds are disbursed. Awards for adult apprentices are limited to ten per employer per calendar year, and applications are accepted on a rolling basis. The practical takeaway: the clock starts at registration, so the incentive application should be planned alongside the hire, not after it.

The Maryland tax credit for eligible apprentices

Separate from the grant, Maryland has operated an income tax credit for employers of eligible apprentices under Tax-General §10-742. As described in state guidance, the credit is worth $3,000 for each eligible registered apprentice (and $1,000 for youth apprentices), applies to the apprentice’s first year of employment, and requires the apprentice to have been employed at least seven full months of the taxable year. Employers apply to the Maryland Department of Labor for certification and attach it to the state return; the credit is nonrefundable, with excess carried forward.

Status caveat, stated plainly: this credit’s authorization has run on sunset-and-extension cycles since it originated under the More Jobs for Marylanders Act of 2017, and legislation in the 2025 session (SB 325 / HB 1047) proposed extending it through 2030 while removing an earlier wage requirement. Because authorization is legislative, confirm with the Maryland Department of Labor that the credit is available for your tax year before counting on it. If the credit lapses in any year, MAIP — which is grant-funded, not tax-code-dependent — remains the primary vehicle.

Additional Maryland programs worth checking

Maryland Labor also operates a Sponsor Apprenticeship Incentive Reimbursement program providing up to $2,500 per newly registered apprentice against the cost of required related instruction, capped at ten apprentices per employer per calendar year, alongside a rotating set of industry-specific apprenticeship grants. Program availability shifts with funding cycles, and stacking rules between programs are set by the state — which is exactly why the right first move is a conversation, not an assumption.

The federal picture

Federal investment increasingly routes through the Registered Apprenticeship system itself — the U.S. Department of Labor’s forecasted $145 million Pay-for-Performance Incentive Payments Program is the most recent signal — and registered-program status is the gateway to that funding pipeline. The underlying economics also favor the model: the Maryland Department of Labor cites U.S. DOL figures showing employers get $1.47 back in increased productivity for every dollar spent on apprenticeship, and that 91% of apprentices remain on the job a year after employment.

Not just Maryland: apprenticeship incentives across the states

Maryland anchors this post because MATC Program #2575 is registered there — but employer incentives for registered apprenticeship are a nationwide pattern, not a Maryland quirk. The U.S. Department of Labor maintains a state-by-state directory of tax credits, funding, and tuition support for hiring registered apprentices, and the range is wide. Illinois, for example, offers a credit of up to $3,500 per apprentice per tax year for qualified education expenses, with an additional $1,500 available when the business or the apprentice is in an underserved area; Tennessee offers a credit of $2,000 or 10% of an apprentice’s wages, whichever is less.

Beyond state tax codes, WIOA funding — allotted to states and administered through local Workforce Development Boards — can support apprenticeship in every state, and the Department of Labor’s apprenticeship consultants exist specifically to walk employers through the funding and reimbursement options in their area. One honest caveat: eligibility rules vary by state, including how each state treats hiring into a program registered elsewhere, so wherever you operate, confirm the specifics with your state’s apprenticeship office before building an incentive into the hiring math.

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How this applies to hiring an AI project management apprentice

Every incentive above attaches to hiring a registered apprentice — and AI project management is now a registered pathway. MATC Program #2575, sponsored by Master of Project Academy, was registered by the Maryland Apprenticeship and Training Council on September 8, 2026, as the first Registered Apprenticeship in the United States dedicated to AI project management; the Maryland Department of Labor publicly welcomed the sponsor cohort on LinkedIn. In practice that means the same state that funds apprentice hiring has registered a program aimed at the exact capability gap — the deployment layer — that enterprise AI keeps failing at.

Because MAIP’s application window runs 30 days around the apprentice’s registration, sequencing is part of the value a sponsor provides: as sponsor, Master of Project Academy handles the apprentice registration paperwork with the state and walks participating employers through which incentives apply and when to file. To start that conversation, visit masterofproject.com/p/aipmapprenticeship or write to [email protected].

Frequently asked questions

Does Maryland have an apprenticeship tax credit?

Maryland has operated an income tax credit of $3,000 per eligible registered apprentice under Tax-General §10-742, subject to legislative authorization cycles — confirm current-year availability with the Maryland Department of Labor. Separately, the Maryland Apprenticeship Incentive Program grant offers up to $3,000 per newly registered adult apprentice.

How much is the Maryland Apprenticeship Incentive Program grant?

Up to $3,000 for each newly registered adult apprentice, or up to $7,500 for each newly registered high-school-level apprentice, for eligible training expenses — with applications due within 30 days of the apprentice’s initial registration and a seven-month retention requirement before disbursement.

Do employers outside Maryland get apprenticeship incentives?

Yes — apprenticeship incentives are a nationwide pattern. The U.S. Department of Labor maintains a state-by-state directory of tax credits, funding, and tuition support; Illinois and Tennessee are among the states with per-apprentice credits, and WIOA funding runs through local workforce boards in every state. Eligibility rules vary by state, so confirm with your state’s apprenticeship office — and reach out to the program regardless at masterofproject.com/p/aipmapprenticeship.

About Master of Project Academy

Founded in 2012, Master of Project Academy has trained 500,000+ learners across 180+ countries in project management, with a 99.6% first-attempt PMP pass rate in delivered cohorts. Master of Project Academy is the registered sponsor of MATC Program #2575, the nation’s first AI Project Management apprenticeship. Learn more at masterofproject.com/p/aipmapprenticeship.

Sources

Maryland Department of Labor — LinkedIn announcement welcoming the new sponsor cohort

Maryland Apprenticeship Tax Credit and Employer Incentives: What You Can Claim in 2026