,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #ccfh  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #ai1 #bjai,ms4  
,sn*ez 7= h]self & ,mr4 ,fitzpatrick7   
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means1 & 9    
addition to ! ,committee on ,education &
 ,labor1 = a p]iod to be subsequ5tly    
det]m9$ by ! ,speak]1 9 ea* case =      
consid]ation ( su* provisions z fall )9 
! jurisdiction ( ! committee conc]n$  ,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 ( #bjai4  #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,t4 ,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> is an     
am\nt equal to--  7,a7 ) respect to ea* 
qualifi$ individual 9 a qualifi$        
appr5tice%ip program1 ! less] (-- 7i7 ! 
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  7ii7 
#e1jjj1 &  7,b7 ) respect to ea*        
qualifi$ individual 9 a qualifi$        
multi-employ] appr5tice%ip program1 !   
less] (--  7i7 an am\nt equal to !      
product (-- 7,i7 ! total numb] ( h\rs ( 
"w p]=m$ by su* qualifi$ individual =   
su* employ] dur+ su* taxable ye>1       
multipli$ by  7,,ii7 #c1 or  7ii7       
#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 employ$  
by ! employ] ?r\gh a qualifi$           
appr5tice%ip program or a qualifi$      
multi-employ] 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 employ$ by !       
employ] ?r\gh a qualifi$ appr5tice%ip   
program or qualifi$ multi-employ]       
appr5tice%ip program =--  7i7 ! #c      
prec$+ taxable ye>s1 or  7ii7 ! numb] ( 
taxable ye>s 9 :i* ! qualifi$           
appr5tice%ip program or ! qualifi$      
multi-employ] 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 or a qualifi$ multi-employ]     
appr5tice%ip program ) an employ] t is  
subject to ! t]ms ( a valid appr5tice%ip
 agreem5t 7z def9$ 9 ! ,act ( ,augu/    
#af1 #aicg 7commonly kn[n z ! ,national 
,appr5tice%ip ,act2 #ej ,/at4 #ffd1     
*apt] #ffc2 #bi ,u4,s4,c4 #ej et seq4771
  7,b7 has be5 employ$ "u a qualifi$    
appr5tice%ip program or a qualifi$      
multi-employ] 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   
program or a qualifi$ multi-employ]     
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  7c7 ,qualifi$ appr5tice%ip   
program & qualifi$ multi-,employ]       
appr5tice%ip program  7#a7 ,qualifi$    
appr5tice%ip program  7,a7 ,9 g5]al ,=  
purposes ( ?is section1 ! t]m qualifi$  
appr5tice%ip program means a program    
regi/]$ "u ! ,national ,appr5tice%ip    
,act1 :e!r or n su* program is sponsor$ 
by an employ]1 :i*--  7i7 provides      
qualifi$ individuals ) on-!-job tra9+ & 
in/ruction = a qualifi$ occupation ) !  
employ]1  7ii7 is regi/]$ ) ! ,(fice (  
,appr5tice%ip ( ! ,employm5t & ,tra9+   
,adm9i/ration ( ! ,dep>tm5t ( ,labor or 
a ,/ate appr5tice%ip ag5cy recogniz$ by 
su* ,(fice ( ,appr5tice%ip1  7iii7      
ma9ta9s records relat+ to ! qualifi$    

individual1 9 su* mann] z ! ,secret>y1  
aft] consultation ) ! ,secret>y (       
,labor1 may prescribe1 &  7iv7 satisfies
 su* o!r requirem5ts z ! ,secret>y1 aft]
 consultation ) ! ,secret>y ( ,labor1   
may prescribe4  7,b7 ,qualifi$          
occupation ,= purposes ( subp>agraph    
7,a77i71 ! 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 ! ,national ,appr5tice%ip 
,act4  7#b7 ,qualifi$ multi-employ]     
appr5tice%ip program ,! t]m qualifi$    
multi-employ] appr5tice%ip program means
 an appr5tice%ip program describ$ 9     
p>agraph 7#a7 9 :i* multiple employ]s   
are requir$ to contribute & t is ma9ta9$
 pursuant to "o or m collective b>ga9+  
agreem5ts betwe5 "o or m employee       
organizations & su* employ]s4  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 !      
,national ,appr5tice%ip ,act4  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 or a      
qualifi$ multi-employ] 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 subsections 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 
section4  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#ca71 by /rik+ ! p]iod at ! end (      
p>agraph 7#cb7 & ins]t+ 1 plus1 & by    
add+ at ! end ! foll[+ new p>agraph3    
7#cc7 ! appr5tice%ip program exp5ses    
cr$it det]m9$ "u section #de,t7a74  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,t4 ,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,t7a71 aft] #de,s7a714  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,t7a7 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 & ,labor ( !
 ,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 programs & qualifi$        
multi-employ] appr5tice%ip programs2    
7#b7 :e!r qualifi$ individuals rema9$   
employ$ by an employ] t receiv$ an      
appr5tice%ip program cr$it "u section   
#de,t ( ! ,int]nal ,rev5ue ,code ( #aihf
 & ! l5g? ( su* employm5t foll[+        
expiration ( ! appr5tice%ip p]iod2  7#c7
 :e!r qualifi$ individuals :o complet$ a
 qualifi$ appr5tice%ip program or a     
qualifi$ multi-employ] appr5tice%ip     
program rema9$ employ$ 9 ! same         
occupation or field2 &  7#d7            

recomm5dations = legislative &          
adm9i/rative actions to improve !       
effectiv5ess ( ! appr5tice%ip program   
cr$it "u section #de,t ( ! ,int]nal     
,rev5ue ,code ( #aihf4  7f7 ,effective  
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft]  
,decemb] #ca1 #bjai4  #c4 ,enc\rag+     
m5tors to tra9 ! future  7a7 ,e>ly      
di/ributions f qualifi$ 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    
,employee ,retirem5t ,income ,security  
,act ( #aigd ,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  
,application ,! am5dm5ts made by ?is    
section %all apply to di/ributions made 
9 taxable ye>s beg9n+ aft] ,decemb] #ca1
 #bjai4