,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #ech  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #be1 #bjai,mr4
 ,w>n] 7= himself1 ,ms4 ,/ab5[1 & ,mr4  
,casey7 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,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$it  7a7 ,9 g5]al ,=      
purposes ( section #ch1 !               
employ]-provid$ 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 =
 ! taxable ye>1 ov]  7#b7 ! av]age ( !  
adju/$ qualifi$ tra9+ exp5ditures = ! #c

 taxable ye>s prec$+ ! taxable ye> = :i*
 ! cr$it is be+ det]m9$4  7b7 ,qualifi$ 
tra9+ exp5ditures ,= purposes ( ?is     
section-- 7#a7 ,9 g5]al ,! t]m qualifi$ 
tra9+ exp5ditures means any exp5ditures 
= ! qualifi$ tra9+ ( any non-highly     
comp5sat$ employee4 ,su* t]m %all n     
include any am\nts paid = meals1 lodg+1 
transportation1 or o!r s]vices incid5tal
 to su* qualifi$ tra9+4  7#b7 ,qualifi$ 
tra9+  7,a7 ,9 g5]al ,= purposes (      
p>agraph 7#a71 ! t]m qualifi$ tra9+     
means tra9+ :i* results 9 ! atta9m5t ( a
 recogniz$ po/second>y cr$5tial & :i* is
 provid$ ?r\gh--  7i7 an appr5tice%ip   
program regi/]$ "u ! ,act ( ,augu/ #af1 
#aicg 7commonly kn[n z ! ,national      
,appr5tice%ip ,act2 #ej ,/at4 #ffd1     
*apt] #ffc2 #bi ,u4,s4,c4 #ej et seq472 
7ii7 7,i7 a program ( tra9+ s]vices :i* 
is li/$ "u section #abb7;d7 ( ! ,work=ce
 ,innovation & ,opportunity ,act 7#bi   
,u4,s4,c4 #caeb7;d772 or  7,,ii7 an     
appr5tice%ip program :i* is regi/]$ or  
approv$ by a recogniz$ ,/ate            

appr5tice%ip ag5cy 7:i* uses a ,/ate    
appr5tice%ip c\ncil7 9 accordance )     
section #a ( ! ,act ref]r$ to 9 clause  
7i72  7iii7 a program :i* is conduct$ by
 an area c>e] & te*nical education      
s*ool1 a community college1 or a labor  
organization2 or  7iv7 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 ,relat$ def9itions ,9 subp>agraph  
7,a73 7i7 ,area c>e] & te*nical         
education s*ool ,! t]m area c>e] &      
te*nical education s*ool means su* a    
s*ool1 z def9$ 9 section #c ( ! ,c>l ,d4
 ,p]k9s ,c>e] & ,te*nical ,education    
,act ( #bjjf 7#bj ,u4,s4,c4 #bcjb71 :i* 
p>ticipates 9 a program "u t ,act 7#bj  
,u4,s4,c4 #bcja et seq474  7ii7         
,community college ,! t]m community     
college means an in/itution :i*-- 7,i7  
is a junior or community college z def9$
 9 section #cab7;f7 ( ! ,high]          
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajeh7;f771 except t ! in/itution ne$ n 

meet ! requirem5ts ( p>agraph 7#a7 ( t  
section2 &  7,,ii7 p>ticipates 9 a      
program "u title ,,iv ( t ,act 7#bj     
,u4,s4,c4 #ajgj et seq474  7iii7        
,indu/ry or sector p>tn]%ip ,! t]m      
indu/ry or sector p>tn]%ip has ! mean+  
giv5 su* t]m "u section #c ( ! ,work=ce 
,innovation & ,opportunity ,act 7#bi    
,u4,s4,c4 #cajb74  7iv7 ,indu/ry trade  
association ,! t]m indu/ry trade        
association means an organization :i*-- 
7,i7 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* ,code2 &  7,,ii7 
is repres5t+ an indu/ry4  7v7 ,labor    
organization ,! t]m labor organization  
means a labor organization1 )9 ! mean+ (
 ! t]m 9 section #eja7;c77#e7 ( !       
,int]nal ,rev5ue ,code ( #aihf4  7vi7   
,recogniz$ po/second>y cr$5tial ,! t]m  
recogniz$ po/second>y cr$5tial means a  
cr$5tial consi/+ ( an indu/ry-recogniz$ 
c]tificate or c]tification1 a c]tificate
 ( completion ( an appr5tice%ip1 a      

lic5se recogniz$ by ! ,/ate involv$ or  
,f$]al ,gov]nm5t1 or an associate or    
baccalaureate degree4  7#c7 ,non-highly 
comp5sat$ employee ,= purposes (        
p>agraph 7#a71 ! t]m non-highly         
comp5sat$ employee means an employee ( !
 taxpay] ^: remun]ation = ! taxable ye> 
= s]vices provid$ to ! taxpay] does n   
exce$ #hb1jjj4  7c7 ,adju/$ qualifi$    
tra9+ exp5ditures ,= purposes ( ?is     
section1 ! t]m adju/$ qualifi$ tra9+    
exp5ses means1 ) respect to any taxable 
ye>-- 7#a7 ! qualifi$ tra9+ exp5ses =   
su* taxable ye>1 multipli$ by  7#b7 !   
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye> 9 :i* !       
taxable ye> = :i* ! cr$it is be+ det]m9$
 beg9s1 except t section                
#a7;f77#c77;,a77ii7 %all be appli$ by   
us+ ! ,,cpi = ! cal5d> ye> 9 :i* !      
taxable ye> 9 :i* qualifi$ tra9+ exp5ses
 7 paid or incurr$ beg9s 9 lieu ( !     
,,cpi = cal5d> ye> #aihb4  7d7 ,special 
rules ,= purposes ( ?is section-- 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 ,rules    
simil> to ! rules ( p>agraphs 7#a71     
7#b71 7#c71 7#d71 & 7#e7 ( section      
#da7;f7 %all apply4  7e7 ,election ,to  
apply cr$it aga9/ payroll taxes  7#a7 ,9
 g5]al ,at ! election ( a qualifi$ small
 bus9ess 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 qualifi$
 small bus9ess or qualifi$ tax-exempt   
organization = 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 ,qualifi$ small     
bus9ess ,= purposes ( ?is subsection--  
7,a7 ,9 g5]al ,! t]m qualifi$ small     
bus9ess means1 ) respect to any taxable 
ye>--  7i7 a corporation or p>tn]%ip1   
if-- 7,i7 ! gross receipts 7z det]m9$ "u
 ! rules ( section #ddh7;c77#c71 )\t    
reg>d to subp>agraph 7,a7 !re(7 ( su*   

entity = ! taxable ye> is less ?an      
#e1jjj1jjj1 &  7,,ii7 su* entity did n h
 gross receipts 7z s det]m9$7 = any     
taxable ye> prec$+ ! #e-taxable-ye>     
p]iod end+ ) su* taxable ye>1 &  7ii7   
any p]son 7o!r ?an a corporation or     
p>tn]%ip7 :o meets ! requirem5ts (      
subclauses 7,i7 & 7,,ii7 ( clause 7i71  
det]m9$--  7,i7 by sub/itut+ p]son =    
entity ea* place x appe>s1 &  7,,ii7 by 
only tak+ into acc\nt ! aggregate gross 
receipts receiv$ by su* p]son 9 c>ry+ on
 all trades or bus9esses ( su* p]son4   
7,b7 ,limitation ,su* t]m %all n include
 an organization :i* is exempt f        
taxation "u section #eja4  7#d7         
,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 qualifi$ small bus9ess or
 qualifi$ tax-exempt organization1 !    
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$+ taxable ye>s4  7,c7 ,special rule
 = p>tn]%ips & s corporations ,9 ! case 
( a p>tn]%ip or ,s corporation1 !       
election made "u ?is subsection %all be 
made at ! entity level4  7#e7           
,aggregation rules  7,a7 ,9 g5]al       
,except z provid$ 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#c77;,b77i7 
%all be allocat$ among all p]sons treat$
 z a s+le taxpay] "u subp>agraph 7,a7 9 
! mann] provid$ by ! ,secret>y :i* is   
simil> to ! mann] provid$ "u section    
#da7;f77#a74  7#f7 ,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;,c71 aft] application ( 
rules simil> to ! rules ( p>agraph      
7#e77;,d771  4  7c7 ,payroll tax cr$it  
,section #caaa ( ! ,int]nal ,rev5ue     
,code ( #aihf is am5d$ by add+ at ! end 
! foll[+ new subsection3  7g7 ,cr$it =  
work] tra9+ exp5ses  7#a7 ,9 g5]al ,9 ! 
case ( a taxpay] :o has made an election
 "u section #de,t7e7 = a taxable ye>1   
!re %all be all[$ 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,t7e77#d77;,a77ii7 an am\nt  
equal to ! payroll tax cr$it portion    
det]m9$ "u section #de,t7e77#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      
receipts 7z det]m9$ "u guidance provid$ 
by ! ,secret>y74  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