,,ii  #aac? ,,congress  #b;d ,session   
,s4 #bgib  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,septemb] #aa1 #bjad   
,ms4 ,cantwell 7= h]self & ,ms4 ,coll9s7
 introduc$ ! foll[+ bill2 :i* 0 read    
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to e/abli% a tax   
cr$it = on-site appr5tice%ip programs1 &
 = o!r purposes4  #a4 ,%ort title ,?is  
,act may be cit$ z ! ,appr5tice%ip &    
,jobs ,tra9+ ,act ( #bjad4  #b4 ,tax    
,cr$it = ,appr5tice%ip ,programs  7a7 ,9
 g5]al ,subp>t ,d ( "p ,,iv ( sub*apt]  
,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by add+ at ! end !    
foll[+ new section3  #de,s4 ,cr$it =    
appr5tice%ip program exp5ses  7a7 ,tax  
,cr$it  7#a7 ,9 g5]al ,= purposes (     
section #ch1 9 ! case ( an employ]1 !   
appr5tice%ip program cr$it det]m9$ "u   
?is section = any taxable ye> ) respect 
to ea* qualifi$ individual 9 a qualifi$ 
appr5tice%ip program is an am\nt equal  
to ! less] (-- 7,a7 ! am\nt ( any wages 
7z def9$ 9 section #ea7;c77#a77 paid or 

incurr$ by ! employ] ) respect to su*   
qualifi$ individual dur+ ! taxable ye>1 
or  7,b7 #e1jjj4  7#b7 ,e/abli%$        
appr5tice%ip programs  7,a7 ,9 g5]al ,! 
appr5tice%ip program cr$it det]m9$ "u   
?is section = ! taxable ye> %all only be
 applicable to ! numb] ( qualifi$       
individuals 9 a qualifi$ appr5tice%ip   
program :i* are 9 excess ( !            
appr5tice%ip p>ticipation av]age = su*  
employ] 7z det]m9$ "u subp>agraph 7,b774
  7,b7 ,appr5tice%ip p>ticipation av]age
 ,= purposes ( subp>agraph 7,a71 !      
appr5tice%ip p>ticipation av]age %all be
 equal to ! av]age ( ! total numb] (    
qualifi$ individuals 9 ! qualifi$       
appr5tice%ip program ( ! employ] =--    
7i7 ! #c prec$+ taxable ye>s1 or  7ii7 !
 numb] ( taxable ye>s 9 :i* ! qualifi$  
appr5tice%ip program 0 9 exi/5ce1 :i*ev]
 is less4  7#c7 ,d5ial ( d\ble b5efit   
,no d$uction or any o!r cr$it %all be   
all[$ "u ?is *apt] = any am\nt tak5 into
 acc\nt 9 det]m9+ ! cr$it "u ?is        
section4  7#d7 ,election n to claim     

cr$it ,?is section %all n apply to a    
taxpay] = any taxable ye> if su* taxpay]
 elects to h ?is section n apply = su*  
taxable ye>4  7#e7 ,limitation ,!       
appr5tice%ip program cr$it "u ?is       
section %all n be all[$ = m ?an #c      
taxable ye>s ) respect to any qualifi$  
individual4  7b7 ,qualifi$ individual   
7#a7 ,9 g5]al ,= purposes ( ?is section1
 ! t]m qualifi$ individual means1 )     
respect to any taxable ye>1 an          
individual :o is an appr5tice &--  7,a7 
is p>ticipat+ 9 a qualifi$ appr5tice%ip 
program ) an employ] t is subject to !  
t]ms ( a valid appr5tice%ip agreem5t 7z 
def9$ 9 section #bi4g ( title #bi ( !   
,code ( ,f$]al ,regulations71  7,b7 has 
be5 employ$ "u a qualifi$ appr5tice%ip  
program = a p]iod ( n less ?an #g mon?s 
t ends )9 ! taxable ye>1  7,c7 is n a   
highly comp5sat$ employee 7z def9$ 9    
section #dad7q771 &  7,d7 is n a        
seasonal work] 7z def9$ 9 section       
#de,r7d77#e77;,b774  7#b7 ,tra9+ receiv$
 by memb]s ( ! ,arm$ ,=ces ,an employ]  

%all consid] & may accept1 9 ! case ( a 
qualifi$ individual p>ticipat+ 9 a      
qualifi$ appr5tice%ip program1 any      
relevant tra9+ or in/ruction receiv$ by 
su* individual :ile s]v+ 9 ! ,arm$ ,=ces
 ( ! ,unit$ ,/ates1 = ! purpose (       
satisfy+ ! applicable tra9+ & in/ruction
 requirem5ts "u su* qualifi$            
appr5tice%ip program4  7#c7             
,ineligibility ( c]ta9 individuals ,=   
purposes ( ?is subsection1 p>agraphs    
7#a7 & 7#b7 ( section #ea7;i7 %all      
apply4  7c7 ,qualifi$ appr5tice%ip      
program  7#a7 ,9 g5]al ,= purposes ( ?is
 section1 ! t]m qualifi$ appr5tice%ip   
program means an appr5tice%ip program 7z
 def9$ 9 section #bi4b ( title #bi ( !  
,code ( ,f$]al ,regulations71 :e!r or n 
su* program is adm9i/]$ by ! employ]1   
:i*--  7,a7 provides qualifi$           
individuals ) on-!-job tra9+ &          
in/ruction = a qualifi$ occupation ) !  
employ]1  7,b7 is regi/]$ ) ! ,(fice (  
,appr5tice%ip ( ! ,employm5t & ,tra9+   
,adm9i/ration ( ! ,dep>tm5t ( ,labor or 

a ,/ate appr5tice%ip ag5cy recogniz$ by 
su* ,(fice ( ,appr5tice%ip1  7,c7       
ma9ta9s records relat+ to ! qualifi$    
individual1 9 su* mann] z ! ,secret>y1  
aft] consultation ) ! ,secret>y (       
,labor1 may prescribe1 &  7,d7 satisfies
 su* o!r requirem5ts z ! ,secret>y1 aft]
 consultation ) ! ,secret>y ( ,labor1   
may prescribe4  7#b7 ,qualifi$          
occupation ,= purposes ( p>agraph       
7#a77;,a71 ! t]m qualifi$ occupation    
means a skill$ trade occupation 9 a     
high-dem& me*anical1 te*nical1 heal?c>e1
 or te*nology field 7or su* o!r         
occupational field z ! ,secret>y1 aft]  
consultation ) ! ,secret>y ( ,labor1 may
 prescribe7 t satisfies ! crit]ia = an  
appr5ticeable occupation "u section     
#bi4d ( title #bi ( ! ,code ( ,f$]al    
,regulations4  7d7 ,appr5tice%ip        
agreem5t  7#a7 ,9 g5]al ,= purposes (   
?is section1 ! t]m appr5tice%ip agreem5t
 means an agreem5t betwe5 a qualifi$    
individual & an employ] t satisfies !   
crit]ia "u section #bi4g ( title #bi ( !

 ,code ( ,f$]al ,regulations4  7#b7     
,cr$it = tra9+ receiv$ "u appr5tice%ip  
agreem5t ,if a qualifi$ individual has  
receiv$ tra9+ or in/ruction ?r\gh a     
qualifi$ appr5tice%ip program ) an      
employ] :i* is subsequ5tly unable to    
satisfy its obligations "u !            
appr5tice%ip agreem5t1 su* individual   
may transf] any complet$ tra9+ or       
in/ruction = purposes ( satisfy+ any    
applicable tra9+ & in/ruction           
requirem5ts "u a sep>ate appr5tice%ip   
agreem5t ) a diff]5t employ]4  7e7      
,application ( c]ta9 rules ,= purposes (
 ?is section1 all p]sons treat$ z a s+le
 employ] "u subsection 7a7 or 7b7 (     
section #eb1 or subsection 7m7 or 7o7 ( 
section #dad1 %all be treat$ z a s+le   
p]son4  7f7 ,regulations ,! ,secret>y   
%all prescribe su* regulations z may be 
necess>y to c>ry out ! provisions ( ?is 
section1 includ+ regulations to provide 
= application ( p>agraphs 7#a7 & 7#b7 ( 
subsection 7a7 ) respect to qualifi$    
individuals 9 a qualifi$ appr5tice%ip   

program :o are employ$ by m ?an #a      
employ]4  4  7b7 ,cr$it ,to be "p (     
g5]al bus9ess cr$it ,section #ch7;b7 ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by /rik+ plus at ! end ( p>agraph      
7#ce71 by /rik+ ! p]iod at ! end (      
p>agraph 7#cf7 & ins]t+ 1 plus1 & by    
add+ at ! end ! foll[+ new p>agraph3    
7#cg7 ! appr5tice%ip program exp5ses    
cr$it det]m9$ "u section #de,s7a74  4   
7c7 ,cl]ical am5dm5t ,! table ( sections
 = subp>t ,d ( "p ,,iv ( sub*apt] ,a (  
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #de,s4 ,cr$it =       
appr5tice%ip program exp5ses4  4  7d7   
,con=m+ am5dm5ts  7#a7 ,rule = employm5t
 cr$its ,section #bhj;,c7a7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ by      
ins]t+ #de,s7a71 aft] #de,p7a714  7#b7  
,exclusion = det]m9ation ( cr$it =      
increas+ rese>* activities ,clause 7iii7
 ( section #da7;b77#b77;,d7 ( su* ,code 
is am5d$ by ins]t+ ! appr5tice%ip       
program cr$it "u section #de,s7a7 or    

aft] 9 det]m9+4  7e7 ,evaluation ,n lat]
 ?an #c ye>s aft] ! date ( ! enactm5t ( 
?is ,act1 & annually !reaft]1 !         
,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all submit a report to ! ,committees on
 ,f9ance & ,heal?1 ,education1 ,labor1 &
 ,p5sions ( ! ,s5ate & ! ,committees on 
,ways & ,means & ,education & ! ,work=ce
 ( ! ,h\se ( ,repres5tatives t conta9s  
an evaluation ( ! activities au?oriz$ "u
 ?is ,act1 includ+--  7#a7 ! ext5t to   
:i* qualifi$ individuals complet$       
qualifi$ appr5tice%ip programs2  7#b7   
:e!r qualifi$ individuals rema9$ employ$
 by an employ] t receiv$ an appr5tice%ip
 program cr$it "u section #de,s ( !     
,int]nal ,rev5ue ,code ( #aihf & ! l5g? 
( su* employm5t foll[+ expiration ( !   
appr5tice%ip p]iod2  7#c7 :e!r qualifi$ 
individuals :o complet$ a qualifi$      
appr5tice%ip program rema9$ employ$ 9 ! 
same occupation or field2 &  7#d7       
recomm5dations = legislative &          
adm9i/rative actions to improve !       
effectiv5ess ( ! appr5tice%ip program   

cr$it "u section #de,s ( ! ,int]nal     
,rev5ue ,code ( #aihf4  7f7 ,effective  
date ,! am5dm5ts made by ?is ,act %all  
apply to taxable ye>s beg9n+ aft]       
,decemb] #ca1 #bjad4  #c4 ,enc\rag+     
m5tors to tra9 ! future  7a7 ,e>ly      
di/ributions f qualifi$ retirem5t plans 
,section #gb7t77#b7 ( ! ,int]nal ,rev5ue
 ,code ( #aihf is am5d$--  7#a7 9       
subp>agraph 7,a7--  7,a7 by /rik+ or at 
! end ( clause 7vii72  7,b7 by /rik+ !  
p]iod at ! end ( clause 7viii7 & ins]t+ 
1 or2 &  7,c7 by add+ at ! end ! foll[+ 
new clause3  7ix7 made to an employee :o
 is s]v+ z a m5tor4  2 &  7#b7 by add+  
at ! end ! foll[+ new subp>agraph3  7,h7
 ,di/ributions to ,m5tors ,= purposes ( 
?is p>agraph1 ! t]m m5tor means an      
individual :o--  7i7 has atta9$ #ee ye>s
 ( age1  7ii7 is n sep>at$ f _!         
employm5t ) a company1 corporation1 or  
in/itution ( high] education1  7iii7 9  
accordance ) su* requirem5ts & /&>ds z !
 ,secret>y det]m9es to be necess>y1 has 
sub/antially r$uc$ _! h\rs ( employm5t )

 _! employ]1 ) ! individual to be engag$
 9 m5tor+ activities describ$ 9 clause  
7iv7 = n less ?an #bj p]c5t ( ! h\rs (  
employm5t aft] su* r$uction1 &  7iv7 is 
responsible = ! tra9+ & education (     
employees or /ud5ts 9 an area ( exp]tise
 = :i* ! individual has a pr(essional   
cr$5tial1 c]tificate1 or degree4  4  7b7
 ,di/ributions dur+ work+ retirem5t     
,p>agraph 7#cf7 ( section #dja7;a7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7#cf7 ,di/ributions  
dur+ work+ retirem5t  7,a7 ,9 g5]al ,a  
tru/ =m+ "p ( a p5sion plan %all n be   
treat$ z fail+ to con/itute a qualifi$  
tru/ "u ?is section solely because !    
plan provides t a di/ribution may be    
made f su* tru/ to an employee :o--  7i7
 has atta9$ age #fb & :o is n sep>at$ f 
employm5t at ! "t ( su* di/ribution1 or 
7ii7 subject to subp>agraph 7,b71 is    
s]v+ z a m5tor 7z su* t]m is def9$ 9    
section #gb7t77#b77;,h774  7,b7         
,limitation on di/ributions to m5tors ,=
 purposes ( subp>agraph 7,a77ii71 !     

am\nt ( ! di/ribution made to an        
employee :o is s]v+ z a m5tor %all n be 
great] ?an ! am\nt equal to ! product   
obta9$ by multiply+--  7i7 ! am\nt ( !  
di/ribution t w\ld h be5 payable to !   
employee if su* employee _h sep>at$ f   
employm5t in/ead ( r$uc+ _! h\rs (      
employm5t ) _! employ] & engag+ 9 m5tor+
 activities1 9 accordance ) clauses     
7iii7 & 7iv7 ( section #gb7t77#b77;,h71 
by  7ii7 ! p]c5tage equal to ! quoti5t  
obta9$ by divid+--  7,i7 ! sum (-- 7aa7 
! numb] ( h\rs p] pay p]iod by :i* !    
employee's h\rs ( employm5t are r$uc$1 &
  7bb7 ! numb] ( h\rs ( employm5t t su* 
employee is engag+ 9 m5tor+ activities1 
by  7,,ii7 ! total numb] ( h\rs p] pay  
p]iod work$ by ! employee be=e su*      
r$uction 9 h\rs ( employm5t4  4  7c7    
,,erisa ,subp>agraph 7,a7 ( section     
#c7b7 ( ! ,employee ,retirem5t ,income  
,security ,act ( #aigd 7#bi ,u4,s4,c4   
#ajjb7b77 is am5d$ by /rik+ ! p]iod at !
 end & ins]t+ ! foll[+3 1 or solely     
because su* di/ribution is made to an   

employee :o is s]v+ z a m5tor 7z su* t]m
 is def9$ 9 section #gb7t77#b77;,h7 ( ! 
,int]nal ,rev5ue ,code ( #aihf744  7d7  
,effective date ,! am5dm5ts made by ?is 
section %all apply to di/ributions made 
9 taxable ye>s beg9n+ aft] ,decemb] #ca1
 #bjad4