,i #aafth ,,congress #ast ,session ,h4 ,r4 #ccfh ,,in ,,the ,,house ,,of ,,representatives ,june #ai1 #bjai,ms4 ,snchez 7for herself and ,mr4 ,fitzpatrick7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,education and ,labor1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to establish a tax credit for on-site apprenticeship programs1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,apprenticeship and ,jobs ,training ,act of #bjai4 #b4 ,tax ,credit for ,apprenticeship ,programs 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,t4 ,credit for apprenticeship program expenses 7a7 ,tax ,credit 7#a7 ,in general ,for purposes of section #ch1 in the case of an employer1 the apprenticeship program credit determined under this section for any taxable year is an amount equal to-- 7,a7 with respect to each qualified individual in a qualified apprenticeship program1 the lesser of-- 7i7 the amount of any wages 7as defined in section #ea7;c77#a77 paid or incurred by the employer with respect to such qualified individual during the taxable year1 or 7ii7 #e1jjj1 and 7,b7 with respect to each qualified individual in a qualified multi-employer apprenticeship program1 the lesser of-- 7i7 an amount equal to the product of-- 7,i7 the total number of hours of work performed by such qualified individual for such employer during such taxable year1 multiplied by 7,,ii7 #c1 or 7ii7 #e1jjj4 7#b7 ,established apprenticeship programs 7,a7 ,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 7as determined under subparagraph 7,b774 7,b7 ,apprenticeship participation average ,for purposes of subparagraph 7,a71 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-- 7i7 the #c preceding taxable years1 or 7ii7 the number of taxable years in which the qualified apprenticeship program or the qualified multi-employer apprenticeship program was in existence1 whichever is less4 7#c7 ,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 section4 7#d7 ,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 year4 7#e7 ,limitation ,the apprenticeship program credit under this section shall not be allowed for more than #c taxable years with respect to any qualified individual4 7b7 ,qualified individual 7#a7 ,in general ,for purposes of this section1 the term qualified individual means1 with respect to any taxable year1 an individual who is an apprentice and-- 7,a7 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 7as defined in the ,act of ,august #af1 #aicg 7commonly known as the ,national ,apprenticeship ,act2 #ej ,stat4 #ffd1 chapter #ffc2 #bi ,u4,s4,c4 #ej et seq4771 7,b7 has been employed under a qualified apprenticeship program or a qualified multi-employer apprenticeship program for a period of not less than #g months that ends within the taxable year1 7,c7 is not a highly compensated employee 7as defined in section #dad7q771 and 7,d7 is not a seasonal worker 7as defined in section #de,r7d77#e77;,b774 7#b7 ,training received by members of the ,armed ,forces ,an employer shall consider and may accept1 in the case of a qualified individual participating in a qualified apprenticeship program or a qualified multi-employer apprenticeship program1 any relevant training or instruction received by such individual while serving in the ,armed ,forces of the ,united ,states1 for the purpose of satisfying the applicable training and instruction requirements under such qualified apprenticeship program4 7c7 ,qualified apprenticeship program and qualified multi-,employer apprenticeship program 7#a7 ,qualified apprenticeship program 7,a7 ,in general ,for purposes of this section1 the term qualified apprenticeship program means a program registered under the ,national ,apprenticeship ,act1 whether or not such program is sponsored by an employer1 which-- 7i7 provides qualified individuals with on-the-job training and instruction for a qualified occupation with the employer1 7ii7 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 ,apprenticeship1 7iii7 maintains records relating to the qualified individual1 in such manner as the ,secretary1 after consultation with the ,secretary of ,labor1 may prescribe1 and 7iv7 satisfies such other requirements as the ,secretary1 after consultation with the ,secretary of ,labor1 may prescribe4 7,b7 ,qualified occupation ,for purposes of subparagraph 7,a77i71 the term qualified occupation means a skilled trade occupation in a high-demand mechanical1 technical1 healthcare1 or technology field 7or such other occupational field as the ,secretary1 after consultation with the ,secretary of ,labor1 may prescribe7 that satisfies the criteria for an apprenticeable occupation under the ,national ,apprenticeship ,act4 7#b7 ,qualified multi-employer apprenticeship program ,the term qualified multi-employer apprenticeship program means an apprenticeship program described in paragraph 7#a7 in which multiple employers are required to contribute and that is maintained pursuant to one or more collective bargaining agreements between one or more employee organizations and such employers4 7d7 ,apprenticeship agreement 7#a7 ,in general ,for purposes of this section1 the term apprenticeship agreement means an agreement between a qualified individual and an employer that satisfies the criteria under the ,national ,apprenticeship ,act4 7#b7 ,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 agreement1 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 employer4 7e7 ,application of certain rules ,for purposes of this section1 all persons treated as a single employer under subsection 7a7 or 7b7 of section #eb1 or subsections 7m7 or 7o7 of section #dad1 shall be treated as a single person4 7f7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section4 4 7b7 ,credit ,to be part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cc7 the apprenticeship program expenses credit determined under section #de,t7a74 4 7c7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new item3 ,sec4 #de,t4 ,credit for apprenticeship program expenses4 4 7d7 ,conforming amendments 7#a7 ,rule for employment credits ,section #bhj;,c7a7 of the ,internal ,revenue ,code of #aihf is amended by inserting #de,t7a71 after #de,s7a714 7#b7 ,exclusion for determination of credit for increasing research activities ,clause 7iii7 of section #da7;b77#b77;,d7 of such ,code is amended by inserting the apprenticeship program credit under section #de,t7a7 or after in determining4 7e7 ,evaluation ,not later than #c years after the date of the enactment of this ,act1 and annually thereafter1 the ,comptroller ,general of the ,united ,states shall submit a report to the ,committees on ,finance and ,health1 ,education1 ,labor1 and ,pensions of the ,senate and the ,committees on ,ways and ,means and ,education and ,labor of the ,house of ,representatives that contains an evaluation of the activities authorized under this ,act1 including-- 7#a7 the extent to which qualified individuals completed qualified apprenticeship programs and qualified multi-employer apprenticeship programs2 7#b7 whether qualified individuals remained employed by an employer that received an apprenticeship program credit under section #de,t of the ,internal ,revenue ,code of #aihf and the length of such employment following expiration of the apprenticeship period2 7#c7 whether qualified individuals who completed a qualified apprenticeship program or a qualified multi-employer apprenticeship program remained employed in the same occupation or field2 and 7#d7 recommendations for legislative and administrative actions to improve the effectiveness of the apprenticeship program credit under section #de,t of the ,internal ,revenue ,code of #aihf4 7f7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjai4 #c4 ,encouraging mentors to train the future 7a7 ,early distributions from qualified retirement plans ,section #gb7t77#b7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 in subparagraph 7,a7-- 7,a7 by striking or at the end of clause 7vii72 7,b7 by striking the period at the end of clause 7viii7 and inserting 1 or2 and 7,c7 by adding at the end the following new clause3 7ix7 made to an employee who is serving as a mentor4 2 and 7#b7 by adding at the end the following new subparagraph3 7,h7 ,distributions to ,mentors ,for purposes of this paragraph1 the term mentor means an individual who-- 7i7 has attained #ee years of age1 7ii7 is not separated from their employment with a company1 corporation1 or institution of higher education1 7iii7 in accordance with such requirements and standards as the ,secretary determines to be necessary1 has substantially reduced their hours of employment with their employer1 with the individual to be engaged in mentoring activities described in clause 7iv7 for not less than #bj percent of the hours of employment after such reduction1 and 7iv7 is responsible for the training and education of employees or students in an area of expertise for which the individual has a professional credential1 certificate1 or degree4 4 7b7 ,distributions during working retirement ,paragraph 7#cf7 of section #dja7;a7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7#cf7 ,distributions during working retirement 7,a7 ,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-- 7i7 has attained age #fb and who is not separated from employment at the time of such distribution1 or 7ii7 subject to subparagraph 7,b71 is serving as a mentor 7as such term is defined in section #gb7t77#b77;,h774 7,b7 ,limitation on distributions to mentors ,for purposes of subparagraph 7,a77ii71 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-- 7i7 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 activities1 in accordance with clauses 7iii7 and 7iv7 of section #gb7t77#b77;,h71 by 7ii7 the percentage equal to the quotient obtained by dividing-- 7,i7 the sum of-- 7aa7 the number of hours per pay period by which the employee's hours of employment are reduced1 and 7bb7 the number of hours of employment that such employee is engaging in mentoring activities1 by 7,,ii7 the total number of hours per pay period worked by the employee before such reduction in hours of employment4 4 7c7 ,employee ,retirement ,income ,security ,act of #aigd ,subparagraph 7,a7 of section #c7b7 of the ,employee ,retirement ,income ,security ,act of #aigd 7#bi ,u4,s4,c4 #ajjb7b77 is amended by striking the period at the end and inserting the following3 1 or solely because such distribution is made to an employee who is serving as a mentor 7as such term is defined in section #gb7t77#b77;,h7 of the ,internal ,revenue ,code of #aihf744 7d7 ,application ,the amendments made by this section shall apply to distributions made in taxable years beginning after ,december #ca1 #bjai4