Sec. 5. STEM apprenticeship tax credit
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Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986, as amended by section 4, is amended by adding at the end the following new section: For purposes of section 38, in the case of an eligible employer the STEM apprenticeship credit determined under this section for the taxable year is an amount equal to the taxpayer’s aggregate STEM credit amount for the taxable year. The total amount of the credit allowed under subsection
(a)to a taxpayer for a taxable year may not exceed $50,000. For purposes of subsection (a), the STEM credit amount with respect to an individual shall be— $2,000 in the case of a new apprentice, $3,000 in the case of a mid-career apprentice, $3,000 in the case of a unemployed apprentice, and 5,000 in the case of a completed apprenticeship employee. For purposes of subsection (a)— The term eligible employer means an employer who employed on average not more than 500 full-time employees on business days during the preceding calendar year. For purposes of the preceding sentence, any individual with respect to whom a credit is allowed under this section shall not be taken into account. 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 1 employer. In the case of an employer which was not in existence throughout the preceding calendar year, the determination of whether such employer is an eligible employer shall be based on the average number of employees that it is reasonably expected such employer will employ on business days in the current calendar year. Any reference in this paragraph to an employer shall include a reference to any predecessor of such employer. The term new apprentice means an employee who, with respect to an eligible employer— completed during the taxable year a qualified apprenticeship program, and prior to beginning the qualified apprenticeship program, has not received compensation during the preceding 1-year period for services provided to the eligible employer. The term mid-career apprentice means an employee who— prior to being employed by the eligible employer was either— employed in an industry sector different from the industry section the eligible employer is in, as determined under regulations of the Secretary, or or was unemployed, and completed during the taxable year a qualified apprenticeship program. The term completed apprenticeship employee means an employee who, with respect to an eligible employer, completed 1 year of service with the eligible employer during the taxable year after completing a qualified apprenticeship program. The term qualified apprenticeship program means an apprenticeship program in a field of science, technology, engineering, or math that is recognized under any program administered by the Secretary of Labor. An individual is unemployed if the individual is certified by the designated local agency as being in receipt of unemployment compensation under State or Federal law for not less than 4 weeks during the 1-year period ending on the hiring date. The terms hiring date and designated local agency have the meanings given such terms by section 51(d)
(11)and (12), respectively. No deduction or credit shall be allowed under any other provision of this chapter for any expenses paid or incurred with respect to an individual to the extent of the credit allowed under this section with respect to the individual. . Subsection
(b)of section 38 of such Code, as amended by section 4, is amended by striking plus at the end of paragraph (37), by striking the period at the end of paragraph
(38)and inserting , plus , and by adding at the end the following new paragraph: the STEM apprenticeship credit determined under section 45U(a). . Subsection
(a)of section 280C of such Code is amended by inserting 45U(a), after 45T(a), . 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. 45U. STEM apprenticeship credit. . The amendments made by this section shall apply to taxable years beginning after December 31, 2017.