[Congressional Record Volume 149, Number 128 (Wednesday, September 17, 2003)]
[Senate]
[Pages S11649-S11651]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ALLARD:
  S. 1625. To amend the Internal Revenue Code of 1986 to allow small 
business employers a credit against income tax for certain expenses for 
long-term training of employees in highly skilled small business 
trades; to the Committee on Finance.
  Mr. ALLARD. Mr. President, it gives me great pleasure to introduce 
today a

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bill to provide a tax credit for apprenticeship training programs for 
various construction trades recognized by the Bureau of Labor 
Statistics (BLS), including masonry, electrical contract work, plumbing 
and heating and a host of other important vocations.
  There are several reasons why I believe this legislation is necessary 
for apprenticeship training in these trades. First and foremost, these 
are highly skilled trades requiring many years of training. Second, 
there is a significant shortage of workers in these trades; in fact it 
is my understanding that many contractors often have to look outside 
the country to find a craftsman trained in one of these particular 
fields. Third, the average age of some of the workers in these crafts 
is over 50 and we must make every effort to ensure that we retain and 
recruit the most capable people in these jobs. And finally, many of 
these industries are very capital intensive and it makes sense to me to 
offer small businesses a short term tax credit to encourage 
productivity and stimulate economic growth and job creation.
  During the last Congress a similar bill was introduced in the House 
of Representatives by Congressman Foley of Florida. Regrettably the 
bill was not met with a great deal of enthusiasm, primarily due to the 
price tag attached to it. The legislation I am introducing, the 
Apprenticeship Training and Education Act of 2003, has been modified to 
address budgetary concerns as well as the concerns of those in some of 
the building trades that the apprenticeship training programs were 
indeed legitimate ones that would ultimately produce certified 
craftsmen. I greatly appreciate the assistance of the Mason Contractors 
Association of America and the Independent Electrical Contractors in 
crafting a bill that is fiscally responsible and credible.
  I believe this tax credit will go a long way toward encouraging 
companies with a certified apprenticeship program to hire and train new 
workers. As the population of these workers continues to age and 
decline, it is absolutely essential that we look for ways to attract 
more, younger workers to what I believe to be excellent, high-paying 
and high skilled jobs in these construction trades.
  Under my bill, a tax credit of up to $10,000 per year for the first 2 
years of a 4-year program would be provided and companies could hire 
three new apprentices each year. The normal business deduction taken 
for this expense would be offset by the amount of the tax credit. The 
bill also specifically targets trades in the construction industry 
recognized by the BLS and only those programs certified by a State's or 
the Federal Department of Labor would qualify for the credit.
  In my view there are many companies across the country that would 
benefit tremendously from this tax credit. I commend this legislation 
to my colleagues and urge them to cosponsor it with me. These are jobs 
and trades to be proud of and I encourage other Members of this body to 
promote the skills and education necessary to keep them viable in the 
United States.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1625

       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, Training, 
     and Employment Act of 2003''.

     SEC. 2. CREDIT FOR EXPENSES FOR LONG-TERM TRAINING OF 
                   EMPLOYEES IN HIGHLY SKILLED SMALL BUSINESS 
                   TRADES.

       (a) In General.--Subpart D of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 (relating to 
     business-related credits) is amended by adding at the end the 
     following new section:

     ``SEC. 45G. EXPENSES FOR LONG-TERM TRAINING OF EMPLOYEES IN 
                   HIGHLY SKILLED SMALL BUSINESS TRADES.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of a small business employer, the highly skilled trades 
     training credit determined under this section for the taxable 
     year is $10,000 for each employee (not to exceed 3 employees) 
     having a qualified training year ending with or within such 
     taxable year (whether or not such employee is an employee of 
     the taxpayer as of the close of such taxable year).
       ``(b) Definitions.--For purposes of this section--
       ``(1) Small business employer.--
       ``(A) In general.--The term `small business employer' 
     means, with respect to any taxable year, any employer who 
     qualifies during such taxable year as a specialty trade 
     contractor under subsector 238 of sector 23 contained in the 
     table under section 121.201 of title 13, Code of Federal 
     Regulations, as in effect on the date of the enactment of 
     this section.
       ``(B) Controlled groups.--For purposes of subparagraph (A), 
     all persons treated as a single employer under subsection 
     (b), (c), (m), or (o) of section 414 shall be treated as a 
     single employer.
       ``(2) Qualified training year.--
       ``(A) In general.--The term `qualified training year' means 
     each year during the training period in which the employee 
     received at least 1,500 hours of training (including on-the-
     job training and training at multi-employer training 
     facilities) from the taxpayer (or any predecessor) under a 
     qualified training program as an apprentice in any highly 
     skilled trade.
       ``(B) Highly skilled trades.--For purposes of subparagraph 
     (A), the term `highly skilled trades' means any specialty 
     trade specified under subsector 238 of sector 23 contained in 
     the table under section 121.201 of title 13, Code of Federal 
     Regulations, as in effect on the date of the enactment of 
     this section. Such term shall not include any trade if the 
     customary apprenticeship period for such trade is less than 2 
     years.
       ``(C) Qualified training program.--
       ``(i) In general.--The term `qualified training program' 
     means a written plan of study and training for individuals 
     in, or entering into, highly skilled trades.
       ``(ii) Description of programs.--A plan under clause (i) 
     must be a program which meets the requirements of clause 
     (iii) and is either--

       ``(I) an apprenticeship program registered and certified 
     with the Secretary of Labor under section 1 of the National 
     Apprenticeship Act (29 U.S.C. 50), or
       ``(II) a program licensed, registered, or certified by the 
     workforce investment board or apprenticeship agency or 
     council of a State or administered in compliance with 
     apprenticeship laws of a State.

       ``(iii) Requirements.--A program meets the requirements of 
     this clause if such program--

       ``(I) is accessible to individuals without discrimination 
     on the basis of race, sex, color, religion, or national 
     origin,
       ``(II) provides an overview of the trade, including the 
     history and modern developments in such trade,
       ``(III) provides related instruction of the fundamental, 
     intermediate, and advanced skills, techniques, and materials 
     of the trade,
       ``(IV) provides training in math, measurement, and 
     blueprint reading skills, if such skills are required in the 
     trade,
       ``(V) provides training on trade-specific tools and 
     equipment,
       ``(VI) provides trade specific safety and health training,
       ``(VII) provides on-the-job training which allows 
     performance of work under close supervision of an instructor 
     or skilled worker, and
       ``(VIII) provides periodic review and evaluation of 
     participants to demonstrate proficiency in skills, including 
     the use of tests and assessment of individual and group 
     projects.

       ``(3) Training period.--The term `training period' means, 
     with respect to an employee, the period--
       ``(A) beginning on the date that the employee begins 
     employment with the taxpayer as an apprentice in the highly 
     skilled trade, and
       ``(B) ending on the earlier of--
       ``(i) the date that such apprenticeship with the employer 
     ends, or
       ``(ii) the date which is 2 years after the date referred to 
     in subparagraph (A).
       ``(c) Coordination With Other Credits.--The amount of 
     credit otherwise allowable under sections 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.''.
       (b) Credit Made Part of General Business Credit.--
     Subsection (b) of section 38 of such Code is amended by 
     striking ``plus'' at the end of paragraph (14), by striking 
     the period at the end of paragraph (15) and inserting ``, 
     plus'', and by adding at the end the following new paragraph:
       ``(16) in the case of a small business employer (as defined 
     in section 45G(b)), the highly skilled trades training credit 
     determined under section 45G(a).''.
       (c) Denial of Double Benefit.--Section 280C of such Code is 
     amended by adding at the end the following new subsection:
       ``(d) Credit for Training Expenses for Employees in Highly 
     Skilled Small Business Trades.--No deduction shall be allowed 
     for that portion of the expenses otherwise allowable as a 
     deduction for the taxable year which is equal to the amount 
     of the credit determined for the taxable year under section 
     45G(a).''.
       (d) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of such Code is 
     amended by adding at the end the following new item:

``Sec. 45G. Expenses for long-term training of employees in highly 
              skilled small business trades.''.


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       (e) Effective Date.--The amendments made by this section 
     shall apply to expenses paid or incurred in the taxable years 
     ending after the date of the enactment of this Act.
                                 ______