[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4238 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 4238
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for employees who participate in qualified
apprenticeship programs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 6, 2019
Mr. Reed (for himself and Ms. Sanchez) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for employees who participate in qualified
apprenticeship programs.
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 ``Leveraging and Energizing America's
Apprenticeship Programs Act'' or the ``LEAP Act''.
SEC. 2. CREDIT FOR EMPLOYEES PARTICIPATING IN QUALIFIED 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. 45T. EMPLOYEES PARTICIPATING IN QUALIFIED APPRENTICESHIP
PROGRAMS.
``(a) In General.--For purposes of section 38, the apprenticeship
credit determined under this section for the taxable year is an amount
equal to the sum of the applicable credit amounts (as determined under
subsection (b)) for each apprentice of the employer that exceeds the
applicable apprenticeship level (as determined under subsection (e))
during such taxable year.
``(b) Applicable Credit Amount.--For purposes of subsection (a),
the applicable credit amount for each apprentice for each taxable year
is equal to--
``(1) in the case of an apprentice who has not attained 25
years of age at the close of the taxable year, $1,500, or
``(2) in the case of an apprentice who has attained 25
years of age at the close of the taxable year, $1,000.
``(c) Limitation on Number of Years Which Credit May Be Taken Into
Account.--The apprenticeship credit shall not be allowed for more than
2 taxable years with respect to any apprentice.
``(d) Apprentice.--For purposes of this section, the term
`apprentice' means any employee who is employed by the employer--
``(1) in an officially recognized apprenticeable
occupation, as determined by the Office of Apprenticeship of
the Employment and Training Administration of the Department of
Labor, and
``(2) pursuant to an apprentice agreement registered with--
``(A) the Office of Apprenticeship of the
Employment and Training Administration of the
Department of Labor, or
``(B) a recognized State apprenticeship agency, as
determined by the Office of Apprenticeship of the
Employment and Training Administration of the
Department of Labor.
``(e) Applicable Apprenticeship Level.--
``(1) In general.--For purposes of this section, the
applicable apprenticeship level shall be equal to--
``(A) in the case of any apprentice described in
subsection (b)(1), the amount equal to 80 percent of
the average number of such apprentices of the employer
for the 3 taxable years preceding the taxable year for
which the credit is being determined, rounded to the
next lower whole number, and
``(B) in the case of any apprentices described in
subsection (b)(2), the amount equal to 80 percent of
the average number of such apprentices of the employer
for the 3 taxable years preceding the taxable year for
which the credit is being determined, rounded to the
next lower whole number.
``(2) First year of new apprenticeship programs.--In the
case of an employer which did not have any apprentices during
any taxable year in the 3 taxable years preceding the taxable
year for which the credit is being determined, the applicable
apprenticeship level shall be equal to zero.
``(f) Coordination With Other Credits.--The amount of credit
otherwise allowable under sections 45A, 51(a), and 1396(a) with respect
to any employee shall be reduced by the credit allowed by this section
with respect to such employee.
``(g) Certain Rules To Apply.--Rules similar to the rules of
subsections (i)(1) and (k) of section 51 shall apply for purposes of
this section.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of the Internal Revenue Code of 1986 is amended by striking
``plus'' at the end of paragraph (31), by striking the period at the
end of paragraph (32) and inserting ``, plus'', and by adding at the
end the following new paragraph:
``(33) the apprenticeship credit determined under section
45T(a).''.
(c) Denial of Double Benefit.--Subsection (a) of section 280C of
the Internal Revenue Code of 1986 is amended by inserting ``45T(a),''
after ``45S(a),''.
(d) 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. 45T. Employees participating in qualified apprenticeship
programs.''.
(e) Effective Date.--The amendments made by this section shall
apply to individuals commencing apprenticeship programs after the date
of the enactment of this Act.
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