The Workforce Apprenticeship Growth and Education Support (WAGES) Act of 2026 aims to bolster the American workforce by providing a new refundable payroll tax credit to employers who invest in registered apprenticeship programs. This credit is designed to offset the costs associated with developing and maintaining these programs, thereby encouraging broader employer participation and addressing critical workforce shortages across various industries. Specifically, the bill allows an eligible employer to claim a credit equal to 50 percent of qualified wages paid to each qualified apprentice and registered apprenticeship program expenses incurred during a calendar quarter. The credit for qualified wages is capped at $5,000 per apprentice per quarter for the first two years of their participation. Registered apprenticeship program expenses, which include related instruction, on-the-job learning, and mentor wages, are also creditable, subject to quarterly limits of up to $50,000 or $2,500 per apprentice , whichever is greater. An eligible employer must either maintain a registered apprenticeship program or adhere to one through an agreement, employing a qualified apprentice who is registered with the Department of Labor or a state agency within 90 days of probationary employment. The credit is applied against applicable employment taxes, and any excess amount is refundable to the employer. To prevent double benefits, expenses claimed for this credit cannot be used for other federal credits or deductions, nor can they be claimed if already funded by other federal programs like the Workforce Innovation and Opportunity Act. Furthermore, the WAGES Act modifies the tax treatment of apprenticeship awards. It reclassifies certain awards given to apprentices in connection with their training as employee achievement awards, making them deductible for employers. The bill significantly increases the deductible limits for these awards, raising them from $400 to $1,500 for non-qualified plan awards and from $1,600 to $5,000 for qualified plan awards, provided they are not received within the first 90 days of program participation.