,i  #aaf? ,,congress  #a/ ,session  ,h4 
,r4 #ejab  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,novemb] #h1 #bjai,mr4
 ,kri%namoor?i 7= himself1 ,mrs4 ,axne1 
,mr4 ,s*iff1 ,ms4 ,wild1 ,ms4 ,del,bene1
 ,mr4 ,b]a1 ,mrs4 ,d+ell1 ,ms4 ,ku/] (  
,new ,hamp%ire1 & ,mr4 ,soto7 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 am5d ! ,int]nal ,rev5ue    
,code ( #aihf to provide a cr$it =      
employ]-provid$ work] tra9+4  #a4 ,%ort 
title ,?is ,act may be cit$ z ! ,inve/+ 
9 ,am]ican ,work]s ,act4  #b4           
,employ]-provid$ work] tra9+ cr$it  7a7 
,9 g5]al  7#a7 ,det]m9ation ( cr$it     
,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 ,employ]-provid$  

work] tra9+ cr$it  7a7 ,9 g5]al ,=      
purposes ( section #ch1 except z provid$
 9 subsection 7d71 ! employ]-provid$    
work] tra9+ cr$it "u ?is section = !    
taxable ye> is an am\nt equal to #bj    
p]c5t ( ! excess 7if any7 (--  7#a7 !   
qualifi$ tra9+ exp5ditures = su* taxable
 ye>1 ov]  7#b7 ! av]age ( ! qualifi$   
tra9+ exp5ditures 7if any7 = ! #c       
taxable ye>s prec$+ su* taxable ye>4    
7b7 ,qualifi$ tra9+ exp5ditures ,=      
purposes ( ?is section-- 7#a7 ,qualifi$ 
tra9+ exp5ditures def9$  7,a7 ,9 g5]al  
,! t]m qualifi$ tra9+ exp5ditures means 
any exp5ditures by an employ] = qualifi$
 tra9+ = any non-highly comp5sat$       
employee4  7,b7 ,exclusions ,! t]m      
qualifi$ tra9+ exp5ditures %all n       
include any am\nts paid = meals1 lodg+1 
transportation1 or o!r s]vices incid5tal
 to exp5ditures describ$ 9 subp>agraph  
7,a74  7#b7 ,qualifi$ tra9+  7,a7 ,9    
g5]al ,! t]m qualifi$ tra9+ means tra9+ 
:i* results 9 ! atta9m5t ( a recogniz$  
po/second>y cr$5tial & :i* is provid$   

pursuant to "o ( ! foll[+3  7i7 ,an     
appr5tice%ip program :i* is regi/]$ "u !
 ,act ( ,augu/ #af1 #aicg 7commonly kn[n
 z ! ,national ,appr5tice%ip ,act2 #ej  
,/at4 #ffd1 *apt] #ffc7 & is 9 an em]g+ 
indu/ry4  7ii7 ,an appr5tice%ip program 
:i* is regi/]$ or approv$ by a recogniz$
 ,/ate appr5tice%ip ag5cy 9 accordance )
 section #a ( su* ,act & :i* is 9 an    
em]g+ indu/ry4  7iii7 ,a program ( tra9+
 s]vices li/$ pursuant to section       
#abb7;d7 ( ! ,work=ce ,innovation &     
,opportunity ,act4  7iv7 ,a program :i* 
is conduct$ by an area c>e] & te*nical  
education s*ool1 a community college1 or
 a labor organization4  7v7 ,a program  
:i* is sponsor$ & adm9i/]$ by an        
employ]1 indu/ry trade association1     
indu/ry or sector p>tn]%ip1 or labor    
organization4  7,b7 ,em]g+ indu/ry ,!   
t]m em]g+ indu/ry means1 = a taxable    
ye>1 an indu/ry t comprises less ?an #cj
 p]c5t ( all civilian appr5tices regi/]$
 ) ! ,dep>tm5t ( ,labor = ! fiscal ye>  
end+ 9 su* taxable ye>4  7,c7 ,community

 college ,! t]m community college means 
an in/itution :i* is a junior or        
community college z def9$ 9 section     
#cab7;f7 ( ! ,high] ,education ,act (   
#aife4  7,d7 ,labor organization ,! t]m 
labor organization means a labor        
organization1 )9 ! mean+ ( ! t]m 9      
section #eja7;c77#e7 ( ! ,int]nal       
,rev5ue ,code ( #aihf4  7,e7 ,indu/ry   
trade association ,! t]m indu/ry trade  
association means an organization :i*-- 
7i7 is describ$ 9 p>agraph 7#c7 or 7#f7 
( section #eja7;c7 ( ! ,int]nal ,rev5ue 
,code ( #aihf & exempt f taxation "u    
section #eja7;a7 ( su* ,code1 &  7ii7 is
 repres5t+ an indu/ry4  7,f7 ,o!r t]ms  
,! t]ms area c>e] & te*nical education  
s*ool1 recogniz$ po/second>y cr$5tial1 &
 indu/ry or sector p>tn]%ip h ! mean+s  
giv5 su* t]ms1 respectively1 by section 
#c ( ! ,work=ce ,innovation &           
,opportunity ,act4  7#c7 ,non-highly    
comp5sat$ employee ,! t]m non-highly    
comp5sat$ employee means1 ) respect to  
an employ]1 an employee ^:-- 7,a7       

comp5sation 7z su* t]m is def9$ 9       
section #dae7;c77#c77 f su* employ] =   
s]vices provid$ = ! taxable ye> does n  
exce$ #hb1jjj1 &  7,b7 rate (           
comp5sation1 if appli$ to a full-"t     
employee = a ye>1 w\ld n exce$ #hb1jjj4 
7c7 ,special rules  7#a7 ,special rule 9
 case ( no qualifi$ tra9+ exp5ditures 9 
any ( #c prec$+ taxable ye>s  7,a7      
,taxpay]s to :i* p>agraph applies ,!    
cr$it "u ?is section %all be det]m9$ "u 
?is p>agraph if ! taxpay] has no        
qualifi$ tra9+ exp5ditures 9 any "o ( ! 
#c taxable ye>s prec$+ ! taxable ye> =  
:i* ! cr$it is be+ det]m9$4  7,b7 ,cr$it
 rate ,! cr$it det]m9$ "u ?is p>agraph  
%all be equal to #aj p]c5t ( ! adju/$   
qualifi$ tra9+ exp5ditures = ! taxable  
ye>4  7#b7 ,aggregation & allocation (  
exp5ditures1 etc ,9 det]m9+ ! am\nt ( ! 
cr$it "u ?is section1 rules simil> to ! 
rules ( p>agraphs 7#a71 7#b71 7#c71     
7#d71 & 7#e7 ( section #da7;f7 %all     
apply4  7d7 ,election ,to apply cr$it   
aga9/ payroll taxes  7#a7 ,9 g5]al ,at !

 election ( a qualifi$ small bus9ess 7z 
def9$ 9 section #da7;h77 or a qualifi$  
tax-exempt organization 7z def9$ 9      
section #caaa7;e77#e77;,a77 = any       
taxable ye>1 section #caaa7;g7 %all     
apply to ! payroll tax cr$it portion ( !
 cr$it o!rwise det]m9$ "u subsection 7a7
 = ! taxable ye> & su* portion %all n be
 treat$ 7o!r ?an = purposes ( section   
#bhj;,c7 z a cr$it det]m9$ "u subsection
 7a74  7#b7 ,payroll tax cr$it portion  
,= purposes ( ?is subsection1 ! payroll 
tax cr$it portion ( ! cr$it det]m9$ "u  
subsection 7a7 ) respect to any taxpay] 
= any taxable ye> is ! lea/ (--  7,a7 ! 
am\nt specifi$ 9 ! election made "u ?is 
subsection1  7,b7 ! cr$it det]m9$ "u    
subsection 7a7 = ! taxable ye> 7det]m9$ 
be=e ! application ( ?is subsection71 or
  7,c7 9 ! case ( a qualifi$ small      
bus9ess o!r ?an a p>tn]%ip or ,s        
corporation1 ! am\nt ( ! bus9ess cr$it  
c>ry=w>d "u section #ci c>ri$ f !       
taxable ye> 7det]m9$ be=e ! application 
( ?is subsection to ! taxable ye>74     

7#c7 ,election  7,a7 ,9 g5]al ,any      
election "u ?is subsection = any taxable
 ye>-- 7i7 %all specify ! am\nt ( !     
cr$it to :i* su* election applies1  7ii7
 %all be made on or be=e ! due date     
7includ+ ext5sions7 (-- 7,i7 9 ! case ( 
a p>tn]%ip1 ! return requir$ to be fil$ 
"u section #fjca1  7,,ii7 9 ! case ( an 
,s corporation1 ! return requir$ to be  
fil$ "u section #fjcg1 &  7,,iii7 9 !   
case ( any o!r taxpay]1 ! return ( tax =
 ! taxable ye>1 &  7iii7 may be revok$  
only ) ! cons5t ( ! ,secret>y4  7,b7    
,limitations  7i7 ,am\nt ,! am\nt       
specifi$ 9 any election made "u ?is     
subsection %all n exce$ #bej1jjj4  7ii7 
,numb] ( taxable ye>s ,a p]son may n    
make an election "u ?is subsection if   
su* p]son 7or any o!r p]son treat$ z a  
s+le taxpay] ) su* p]son "u p>agraph    
7#e77;,a77 has made an election "u ?is  
subsection = five or m prec$+ taxable   
ye>s4  7,c7 ,special rule = p>tn]%ips & 
s corporations ,9 ! case ( a p>tn]%ip or
 ,s corporation1 ! election made "u ?is 

subsection %all be made at ! entity     
level4  7#d7 ,aggregation rules  7,a7 ,9
 g5]al ,except z provid$ 9 subp>agraph  
7,b7-- 7i7 all memb]s ( ! same controll$
 gr\p ( corporations %all be treat$ z a 
s+le taxpay]1 &  7ii7 all trades or     
bus9esses 7:e!r or n incorporat$7 :i*   
are "u common control %all be treat$ z a
 s+le taxpay]4  7,b7 ,special rules ,=  
purposes ( ?is subsection & section     
#caaa7;g7-- 7i7 ea* ( ! p]sons treat$ z 
a s+le taxpay] "u subp>agraph 7,a7 may  
sep>ately make ! election "u p>agraph   
7#a7 = any taxable ye>1 &  7ii7 !       
#bej1jjj am\nt "u p>agraph 7#d77;,b77i7 
%all be allocat$ among all p]sons treat$
 z a s+le taxpay] "u subp>agraph 7,a7 9 
! same mann] z "u section #da7;f77#a74  
7#e7 ,regulations ,! ,secret>y %all     
prescribe su* regulations z may be      
necess>y to c>ry out ! purposes ( ?is   
subsection1 includ+--  7,a7 regulations 
to prev5t ! avoidance ( ! purposes ( !  
limitations & aggregation rules "u ?is  
subsection1  7,b7 regulations to m9imize

 compliance & recordkeep+ burd5s "u ?is 
subsection1 &  7,c7 regulations =       
recaptur+ ! b5efit ( cr$its det]m9$ "u  
section #caaa7;g7 9 cases :]e !re is a  
recapture or a subsequ5t adju/m5t to !  
payroll tax cr$it portion ( ! cr$it     
det]m9$ "u subsection 7a71 includ+      
requir+ am5d$ income tax returns 9 !    
cases :]e !re is su* an adju/m5t4  4    
7#b7 ,cr$it "p ( g5]al bus9ess cr$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 ! employ]-provid$ work]
 tra9+ cr$it det]m9$ "u section         
#de,t7a74  4  7#c7 ,coord9ation )       
d$uctions ,section #bhj;,c ( ! ,int]nal 
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new subsection3  7i7  
,employ]-,provid$ work] tra9+ cr$it ,no 
d$uction %all be all[$ = t portion ( !  
exp5ses o!rwise all[able z a d$uction   
tak5 into acc\nt 9 det]m9+ ! cr$it "u   

section #de,t = ! taxable ye> :i* is    
equal to ! am\nt ( ! cr$it det]m9$ = su*
 taxable ye> "u section #de,t7a74  4    
7#d7 ,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 ,employ]-provid$ work] tra9+     
cr$it4  4  7b7 ,cr$it all[$ aga9/       
alt]native m9imum tax ,subp>agraph 7,b7 
( section #ch7;c77#d7 ( ! ,int]nal      
,rev5ue ,code ( #aihf is am5d$-- 7#a7 by
 r$esignat+ clauses 7x71 7xi71 & 7xii7 z
 clauses 7xi71 7xii71 & 7xiii71         
respectively1 &  7#b7 by ins]t+ aft]    
clause 7ix7 ! foll[+ new clause3  7x7 ! 
cr$it det]m9$ "u section #de,t ) respect
 to an eligible small bus9ess 7z def9$ 9
 p>agraph 7#e77;,a71 aft] application ( 
rules simil> to ! rules ( p>agraph      
7#e77;,b771  4  7c7 ,payroll tax cr$it  
,section #caaa ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new subsection3  7g7 ,cr$it =  

work] tra9+ exp5ses  7#a7 ,9 g5]al ,9 ! 
case ( a taxpay] :o has made an election
 "u section #de,t7d7 = a taxable ye>1   
!re %all be all[$ z a cr$it aga9/ ! tax 
impos$ by subsection 7a7 = ! fir/ cal5d>
 qu>t] :i* beg9s aft] ! date on :i* !   
taxpay] files ! return specifi$ 9       
section #de,t7d77#c77;,a77ii7 an am\nt  
equal to ! payroll tax cr$it portion    
det]m9$ "u section #de,t7d77#b74  7#b7  
,limitation ,! cr$it all[$ by p>agraph  
7#a7 %all n exce$ ! tax impos$ by       
subsection 7a7 = any cal5d> qu>t] on !  
wages paid ) respect to ! employm5t (   
all individuals 9 ! employ ( ! employ]4 
7#c7 ,c>ryov] ( unus$ cr$it ,if ! am\nt 
( ! cr$it "u p>agraph 7#a7 exce$s !     
limitation ( p>agraph 7#b7 = any cal5d> 
qu>t]1 su* excess %all be c>ri$ to !    
succe$+ cal5d> qu>t] & all[$ z a cr$it  
"u p>agraph 7#a7 = su* qu>t]4  7#d7     
,d$uction all[$ = cr$it$ am\nts ,! cr$it
 all[$ "u p>agraph 7#a7 %all n be tak5  
into acc\nt = purposes ( det]m9+ ! am\nt
 ( any d$uction all[$ "u *apt] #a =     

taxes impos$ "u subsection 7a74  4  7d7 
,simplifi$ fil+ = c]ta9 small bus9esses 
,! ,secret>y ( ! ,treasury %all provide 
= a me?od ( fil+ returns ( tax &        
in=mation returns requir$ "u ! ,int]nal 
,rev5ue ,code ( #aihf 9 a simplifi$     
=mat1 to ! ext5t possible1 = employ]s ) 
less ?an #e1jjj1jjj 9 annual gross      
receipts4  7e7 ,regulations relat+ to   
po/second>y cr$5tials ,n lat] ?an #a ye>
 aft] ! date ( ! enactm5t ( ?is ,act1 ! 
,secret>y ( ,labor1 9 consultation ) !  
,secret>y ( ! ,treasury1 %all issue     
regulations or o!r guidance apply+ !    
def9ition ( ! t]m recogniz$ po/second>y 
cr$5tial z provid$ 9 section #c ( !     
,work=ce ,innovation & ,opportunity ,act
 7#bi ,u4,s4,c4 #cajb74  7f7 ,effective 
date ,! am5dm5ts made by ?is section    
%all apply to taxable ye>s beg9n+ aft] !
 date ( ! enactm5t ( ?is ,act4