[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 1352 Introduced in Senate (IS)]
<DOC>
115th CONGRESS
1st Session
S. 1352
To establish a tax credit for on-site apprenticeship programs, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 14, 2017
Ms. Cantwell (for herself, Ms. Collins, and Ms. Klobuchar) introduced
the following bill; which was read twice and referred to the Committee
on Finance
_______________________________________________________________________
A BILL
To establish a tax credit for on-site apprenticeship programs, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Apprenticeship and Jobs Training Act
of 2017''.
SEC. 2. TAX CREDIT FOR APPRENTICESHIP PROGRAMS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45S. CREDIT FOR APPRENTICESHIP PROGRAM EXPENSES.
``(a) Tax Credit.--
``(1) In general.--For purposes of section 38, in the case
of an employer, the apprenticeship program credit determined
under this section for any taxable year is an amount equal to--
``(A) with respect to each qualified individual in
a qualified apprenticeship program, the lesser of--
``(i) the amount of any wages (as defined
in section 51(c)(1)) paid or incurred by the
employer with respect to such qualified
individual during the taxable year, or
``(ii) $5,000, and
``(B) with respect to each qualified individual in
a qualified multi-employer apprenticeship program, the
lesser of--
``(i) an amount equal to the product of--
``(I) the total number of hours of
work performed by such qualified
individual for such employer during
such taxable year, multiplied by
``(II) $3, or
``(ii) $5,000.
``(2) Established apprenticeship programs.--
``(A) In general.--The apprenticeship program
credit determined under this section for the taxable
year shall only be applicable to the number of
qualified individuals employed by the employer through
a qualified apprenticeship program or a qualified
multi-employer apprenticeship program which are in
excess of the apprenticeship participation average for
such employer (as determined under subparagraph (B)).
``(B) Apprenticeship participation average.--For
purposes of subparagraph (A), the apprenticeship
participation average shall be equal to the average of
the total number of qualified individuals employed by
the employer through a qualified apprenticeship program
or qualified multi-employer apprenticeship program
for--
``(i) the 3 preceding taxable years, or
``(ii) the number of taxable years in which
the qualified apprenticeship program or the
qualified multi-employer apprenticeship program
was in existence, whichever is less.
``(3) Denial of double benefit.--No deduction or any other
credit shall be allowed under this chapter for any amount taken
into account in determining the credit under this section.
``(4) Election not to claim credit.--This section shall not
apply to a taxpayer for any taxable year if such taxpayer
elects to have this section not apply for such taxable year.
``(5) Limitation.--The apprenticeship program credit under
this section shall not be allowed for more than 3 taxable years
with respect to any qualified individual.
``(b) Qualified Individual.--
``(1) In general.--For purposes of this section, the term
`qualified individual' means, with respect to any taxable year,
an individual who is an apprentice and--
``(A) is participating in a qualified
apprenticeship program or a qualified multi-employer
apprenticeship program with an employer that is subject
to the terms of a valid apprenticeship agreement (as
defined in the Act of August 16, 1937 (commonly known
as the `National Apprenticeship Act'; 50 Stat. 664,
chapter 663; 29 U.S.C. 50 et seq.)),
``(B) has been employed under a qualified
apprenticeship program or a qualified multi-employer
apprenticeship program for a period of not less than 7
months that ends within the taxable year,
``(C) is not a highly compensated employee (as
defined in section 414(q)), and
``(D) is not a seasonal worker (as defined in
section 45R(d)(5)(B)).
``(2) Training received by members of the armed forces.--An
employer shall consider and may accept, in the case of a
qualified individual participating in a qualified
apprenticeship program or a qualified multi-employer
apprenticeship program, any relevant training or instruction
received by such individual while serving in the Armed Forces
of the United States, for the purpose of satisfying the
applicable training and instruction requirements under such
qualified apprenticeship program.
``(c) Qualified Apprenticeship Program and Qualified Multi-Employer
Apprenticeship Program.--
``(1) Qualified apprenticeship program.--
``(A) In general.--For purposes of this section,
the term `qualified apprenticeship program' means a
program registered under the National Apprenticeship
Act, whether or not such program is sponsored by an
employer, which--
``(i) provides qualified individuals with
on-the-job training and instruction for a
qualified occupation with the employer,
``(ii) is registered with the Office of
Apprenticeship of the Employment and Training
Administration of the Department of Labor or a
State apprenticeship agency recognized by such
Office of Apprenticeship,
``(iii) maintains records relating to the
qualified individual, in such manner as the
Secretary, after consultation with the
Secretary of Labor, may prescribe, and
``(iv) satisfies such other requirements as
the Secretary, after consultation with the
Secretary of Labor, may prescribe.
``(B) Qualified occupation.--For purposes of
subparagraph (A)(i), the term `qualified occupation'
means a skilled trade occupation in a high-demand
mechanical, technical, healthcare, or technology field
(or such other occupational field as the Secretary,
after consultation with the Secretary of Labor, may
prescribe) that satisfies the criteria for an
apprenticeable occupation under the National
Apprenticeship Act.
``(2) Qualified multi-employer apprenticeship program.--The
term `qualified multi-employer apprenticeship program' means an
apprenticeship program described in paragraph (1) in which
multiple employers are required to contribute and that is
maintained pursuant to one or more collective bargaining
agreements between one or more employee organizations and such
employers.
``(d) Apprenticeship Agreement.--
``(1) In general.--For purposes of this section, the term
`apprenticeship agreement' means an agreement between a
qualified individual and an employer that satisfies the
criteria under the National Apprenticeship Act.
``(2) Credit for training received under apprenticeship
agreement.--If a qualified individual has received training or
instruction through a qualified apprenticeship program or a
qualified multi-employer apprenticeship program with an
employer which is subsequently unable to satisfy its
obligations under the apprenticeship agreement, such individual
may transfer any completed training or instruction for purposes
of satisfying any applicable training and instruction
requirements under a separate apprenticeship agreement with a
different employer.
``(e) Application of Certain Rules.--For purposes of this section,
all persons treated as a single employer under subsection (a) or (b) of
section 52, or subsections (m) or (o) of section 414, shall be treated
as a single person.
``(f) Regulations.--The Secretary shall prescribe such regulations
as may be necessary to carry out the provisions of this section.''.
(b) Credit To Be Part of General Business Credit.--Section 38(b) of
the Internal Revenue Code of 1986 is amended by striking ``plus'' at
the end of paragraph (35), by striking the period at the end of
paragraph (36) and inserting ``, plus'', and by adding at the end the
following new paragraph:
``(37) the apprenticeship program expenses credit
determined under section 45S(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 45S. Credit for apprenticeship program expenses.''.
(d) Conforming Amendments.--
(1) Rule for employment credits.--Section 280C(a) of the
Internal Revenue Code of 1986 is amended by inserting
``45S(a),'' after ``45P(a),''.
(2) Exclusion for determination of credit for increasing
research activities.--Clause (iii) of section 41(b)(2)(D) of
such Code is amended by inserting ``the apprenticeship program
credit under section 45S(a) or'' after ``in determining''.
(e) Evaluation.--Not later than 3 years after the date of the
enactment of this Act, and annually thereafter, the Comptroller General
of the United States shall submit a report to the Committees on Finance
and Health, Education, Labor, and Pensions of the Senate and the
Committees on Ways and Means and Education and the Workforce of the
House of Representatives that contains an evaluation of the activities
authorized under this Act, including--
(1) the extent to which qualified individuals completed
qualified apprenticeship programs and qualified multi-employer
apprenticeship programs;
(2) whether qualified individuals remained employed by an
employer that received an apprenticeship program credit under
section 45S of the Internal Revenue Code of 1986 and the length
of such employment following expiration of the apprenticeship
period;
(3) whether qualified individuals who completed a qualified
apprenticeship program or a qualified multi-employer
apprenticeship program remained employed in the same occupation
or field; and
(4) recommendations for legislative and administrative
actions to improve the effectiveness of the apprenticeship
program credit under section 45S of the Internal Revenue Code
of 1986.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2017.
SEC. 3. ENCOURAGING MENTORS TO TRAIN THE FUTURE.
(a) Early Distributions From Qualified Retirement Plans.--Section
72(t)(2) of the Internal Revenue Code of 1986 is amended--
(1) in subparagraph (A)--
(A) by striking ``or'' at the end of clause (vii);
(B) by striking the period at the end of clause
(viii) and inserting ``, or''; and
(C) by adding at the end the following new clause:
``(ix) made to an employee who is serving
as a mentor.''; and
(2) by adding at the end the following new subparagraph:
``(H) Distributions to mentors.--For purposes of
this paragraph, the term `mentor' means an individual
who--
``(i) has attained 55 years of age,
``(ii) is not separated from their
employment with a company, corporation, or
institution of higher education,
``(iii) in accordance with such
requirements and standards as the Secretary
determines to be necessary, has substantially
reduced their hours of employment with their
employer, with the individual to be engaged in
mentoring activities described in clause (iv)
for not less than 20 percent of the hours of
employment after such reduction, and
``(iv) is responsible for the training and
education of employees or students in an area
of expertise for which the individual has a
professional credential, certificate, or
degree.''.
(b) Distributions During Working Retirement.--Paragraph (36) of
section 401(a) of the Internal Revenue Code of 1986 is amended to read
as follows:
``(36) Distributions during working retirement.--
``(A) In general.--A trust forming part of a
pension plan shall not be treated as failing to
constitute a qualified trust under this section solely
because the plan provides that a distribution may be
made from such trust to an employee who--
``(i) has attained age 62 and who is not
separated from employment at the time of such
distribution, or
``(ii) subject to subparagraph (B), is
serving as a mentor (as such term is defined in
section 72(t)(2)(H)).
``(B) Limitation on distributions to mentors.--For
purposes of subparagraph (A)(ii), the amount of the
distribution made to an employee who is serving as a
mentor shall not be greater than the amount equal to
the product obtained by multiplying--
``(i) the amount of the distribution that
would have been payable to the employee if such
employee had separated from employment instead
of reducing their hours of employment with
their employer and engaging in mentoring
activities, in accordance with clauses (iii)
and (iv) of section 72(t)(2)(H), by
``(ii) the percentage equal to the quotient
obtained by dividing--
``(I) the sum of--
``(aa) the number of hours
per pay period by which the
employee's hours of employment
are reduced, and
``(bb) the number of hours
of employment that such
employee is engaging in
mentoring activities, by
``(II) the total number of hours
per pay period worked by the employee
before such reduction in hours of
employment.''.
(c) ERISA.--Subparagraph (A) of section 3(2) of the Employee
Retirement Income Security Act of 1974 (29 U.S.C. 1002(2)) is amended
by striking the period at the end and inserting the following: ``, or
solely because such distribution is made to an employee who is serving
as a mentor (as such term is defined in section 72(t)(2)(H) of the
Internal Revenue Code of 1986).''.
(d) Application.--The amendments made by this section shall apply
to distributions made in taxable years beginning after December 31,
2017.
<all>