Sec. 13202. Credit for wages paid to employees participating in qualified apprenticeship programs
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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: For purposes of section 38, the apprenticeship credit determined under this section for the taxable year is the sum of— the apprenticeship period credit, and the post-apprenticeship credit. For purposes of subsection (a)— The apprenticeship period credit for the taxable year is 50 percent of the wages paid for services rendered during the taxable year to each apprenticeship employee but only if such wages are paid for services rendered during a qualified training year of such employee (whether or not such employee is an employee of the taxpayer as of the close of such taxable year).
The amount of wages which may be taken into account under paragraph
(1)with respect to any apprenticeship employee for each qualified training year shall not exceed $2,000. For purposes of subsection (a)— The post-apprenticeship credit for the taxable year is 40 percent of the wages paid for services rendered during the taxable year to each employee who has successfully completed a qualified training program of the employer, but only if— such wages are paid by such employer for services rendered— during the 2-year period which begins on the day after the employee’s completion of such program, and during the qualified employment period of such employee, and the employee is performing such services in a position which utilizes skills acquired in the qualified training program. The amount of wages which may be taken into account under paragraph
(1)with respect to any apprenticeship employee shall not exceed $6,000. The Secretary shall, by regulations, provide for recapturing the amount of any post-apprenticeship credit allowed under subsection
(a)with respect to any individual who is employed by the employer for less than 1 year after the individual completed such program. For purposes of this section— The term wages has the meaning given to such term by section 51(c), determined without regard to paragraph
(4)thereof. The term apprenticeship employee means any employee who is employed by the employer pursuant to an apprentice agreement registered with— the Office of Apprenticeship of the Employment and Training Administration of the Department of Labor, or a recognized State apprenticeship agency, as determined by the Office of Apprenticeship of the Employment and Training Administration of the Department of Labor. The term qualified training year means each year during the training period in which— the employee is employed by the employer for at least 25 hours per week during 28 consecutive weeks of such year, and the employee completes at least 8 credit hours of classroom work under a qualified training program for each semester of such program ending during such year. The term qualified training program means any training program undertaken pursuant to the agreement referred to in paragraph (2). The term training period means, with respect to an employee, the period— beginning on the date that the employee begins employment with the taxpayer as an apprentice under a qualified training program, and ending on the earlier of— the date that such apprenticeship with the employer ends, or the date which is 2 years after the date referred to in clause (i). The term qualified employment period means the period— beginning on the date that the employee begins employment with the taxpayer after the employee’s completion of a qualified training program of the taxpayer, and ending on the earlier of— the date that such employment ends, or the date which is 1 year after the date referred to in subparagraph (A). 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. Rules similar to the rules of subsections (i)(1) and
(k)of section 51 shall apply for purposes of this section. . Subsection
(b)of section 38 of such Code 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: the apprenticeship credit determined under section 45S(a). . Subsection
(a)of section 280C of such Code is amended by inserting 45S(a), after 45P(a), . 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. 45S. Wages paid to employees participating in qualified apprenticeship programs. . The amendments made by this section shall apply to individuals commencing apprenticeship programs after the date of the enactment of this Act.