Method of computation

# (a)

Determining number of eligible apprenticeships

# (1)

Total the number of months any apprentice was employed at least 120 hours in any one month during the current claim year and divide by twelve (12) which equals the apprentice level for the claim year.

# (2)

Total the number of months any apprentice was employed at least 120 hours in any month for the five tax years preceding the current claim year and divide by sixty (60) which equals the apprenticeship average.

# (3)

If the apprentice average is greater than the apprentice level for the claim year then no tax credit can be received. However, if the apprentice level for the year is greater than the apprentice average then the difference between these two numbers represents the eligible number of apprenticeships for which a tax credit can be received.

# (b)

Computing tax credit

# (1)

Convert the number in subsection (a) (3) of this section to specific apprentices employed in the claim year who were in the first half of their apprenticeship term.

# (2)

Multiply each hour worked by such apprentice by four dollars ($4.00). Any work hours included in this computation for a specific claim year must be from the first half of an apprenticeship period only, except that for taxable years beginning on or after January 1, 1994, any work hours included in this computation for a specific year of a four-year term of apprenticeship must be only from the first threequarters of the four-year term of apprenticeship. Work hours occurring in any other portion of an apprenticeship period are disallowed for purposes of this part.

# (3)

Claim tax credit based on the lesser of the following three amounts:

(A) Total number of hours worked in a claim year times $4.00 as in subsection

(b) (2) of this section.

(B) 50% of actual wages paid in claim year based on the first half of an apprenticeship period only.

(C) Maximum credit of $4,800.00.