[Congressional Record Volume 161, Number 76 (Monday, May 18, 2015)]
[Senate]
[Pages S2992-S2993]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1316. Ms. CANTWELL (for herself, Mr. Kaine, Ms. Collins, and Mr.
Brown) submitted an amendment intended to be proposed to amendment SA
1221 proposed by Mr. Hatch to the bill H.R. 1314, to amend the Internal
Revenue Code of 1986 to provide for a right to an administrative appeal
relating to adverse determinations of tax-exempt status of certain
organizations; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. ___. 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
[[Page S2993]]
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 1 or more collective bargaining
agreements between 1 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.
``(g) Termination.--This section shall not apply with
respect to any wages paid to or any hours of work performed
by a qualified individual after December 31, 2020.''.
(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,
2015.
SEC. ___. 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, 2015 and before January 1, 2021.
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