[Congressional Record Volume 160, Number 58 (Wednesday, April 9, 2014)]
[Senate]
[Page S2328]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
By Mr. BOOKER (for himself and Mr. Scott):
S. 2234. 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; to the Committee on Finance.
Mr. BOOKER. Mr. President, I rise today to introduce with my
colleague, Senator Tim Scott of South Carolina, the Leveraging and
Energizing America's Apprenticeship Programs or LEAP Act, which
provides a tax credit to employers to help increase the number of
registered apprenticeships in the U.S. and put more young Americans to
work.
Today, there are still more than 10 million unemployed Americans, and
our young people continue to be especially hard hit. Nearly six years
after the start of the Great Recession, 16 percent of 16 to 24 year
olds are without a job. The numbers are far worse among youth of color
and for those without college degrees.
Yet 4 million jobs remain unfilled in the U.S., and part of the
reason is that key gaps persist between the skills of young adults and
workforce needs. By 2020, the United States is expected to experience a
shortage of 3 million workers with associate's degrees or higher and 5
million workers with technical certificates and credentials.
Apprenticeships are a proven way to help young people develop in-
demand skills and to meet the needs of employers, yet they comprise
just 0.2 percent of the U.S. workforce.
While competitor nations around the world are investing in robust
apprenticeship programs, the U.S., by contrast, had just 358,000
active, registered apprenticeships in 2012. That is 7 percent of what
England offered when adjusted for population. In Germany, nearly half
of all young people go through apprenticeship programs.
We can't let America continue to lag behind. That's why Senator Scott
and I are introducing the LEAP Act, an initiative that provides a paid-
for Federal tax credit to businesses to develop apprenticeship programs
that are registered with the Department of Labor or a state
apprenticeship agency. The bill addresses the fact that the average age
of apprentices is currently as high as 29 years, by offering a tax
credit of $1,500 for apprentices under the age of 25. The tax credit
for apprentices 25 or over is $1,000. The cost of the tax credits are
offset by a provision that cuts printing waste by barring the Federal
Government from producing publications that are available online,
unless the printing is for seniors, Medicare recipients or communities
with limited Internet access.
A thriving apprenticeship system should be an essential element of an
effective workforce development strategy; registered apprenticeship
programs help individuals attain a recognized post-secondary credential
and provide workers with the education and on-the-job training needed
to succeed.
Studies show that apprenticeships are a wise investment for both
participants and the U.S. government: individuals who complete
registered apprenticeship programs earn over $240,000 more over their
careers than people who did not participate in such programs, and the
tax return on every Federal Government dollar invested in registered
apprenticeship programs is $27.
Our future competitiveness--our economic strength as a nation--
depends on the innovation and skill of our workforce. I am proud to
join with Senator Scott in putting forward this bipartisan legislation
that will create opportunities for more Americans to learn the in-
demand skills that will help meet employers' needs and fuel our
economy. I look forward to working with my colleagues to build support
for and pass this bill.
____________________