,i #aaith ,,congress #ast ,session ,h4 ,r4 #chga ,,in ,,the ,,house ,,of ,,representatives ,june #aj1 #bjbe,mr4 ,ellzey introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to allow a credit to employers who hire individuals through an apprenticeship program4 #a4 ,short title ,this ,act may be cited as the ,apprenticeship ,infrastructure ,tax ,credit ,act of #bjbe4 #b4 ,apprenticeship infrastructure tax credit for employers 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;,,bb4 ,apprenticeship infrastructure tax credit for employers 7a7 ,in general ,for purposes of section #ch1 the apprenticeship infrastructure tax credit determined under this section for the taxable year is an amount equal to the sum of the applicable credit amounts determined during the apprenticeship credit period with respect to each apprenticeship employee of the employer4 7b7 ,applicable credit amount ,for purposes of this section1 the applicable credit amount with respect to an apprenticeship employee shall be an amount equal to-- 7#a7 in the case of an apprenticeship employee not described in paragraph 7#b71 #c1jjj1 and 7#b7 in the case of a recently separated veteran1 a member of the ,national ,guard or reserve component of the ,armed ,forces1 or a military spouse1 #f1jjj4 ,the applicable credit amount with respect to an apprenticeship employee for taxable years beginning after the end of the apprenticeship credit period 7determined without regard to subsection 7c77#b77 shall be zero4 7c7 ,apprenticeship credit period ,for purposes of this section-- 7#a7 ,in general ,the apprenticeship credit period with respect to an apprenticeship employee shall be-- 7,a7 the taxable year during which such employee first enrolls in the employer's qualified registered apprenticeship program1 and 7,b7 the succeeding taxable year if the qualified registered apprenticeship program in which such employee is enrolled is-- 7i7 is a time-based or hybrid program that requires #c1jjj or more on-the-job learning hours1 or 7ii7 is a competency-based program with #c1jjj or more on-the-job learning hours4 7#b7 ,carryforward year ,the apprenticeship credit period with respect to an apprenticeship employee shall include the taxable year succeeding the taxable year described in subparagraph 7,a7 or 7,b71 as the case may be1 in the case a credit carryforward to such succeeding taxable year with respect to an apprentice employee under subsection 7d77#g74 7d7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,apprenticeship employee 7,a7 ,in general ,the term apprenticeship employee means an individual who-- 7i7 is a new hire employed by an apprenticeship employer1 and 7ii7 enrolled under a written agreement in a qualified registered apprenticeship program with respect to an infrastructure-related occupation4 7,b7 ,infrastructure-related occupation 7i7 ,in general ,the term infrastructure-related occupation means an occupation identified by the ,secretary of ,labor as eligible for the credit determined under this section4 7ii7 ,initial list applicable to #bjbf ,for taxable years beginning in #bjbf1 such term shall include occupations within the following major groups as defined in the ,occupational ,information ,network 7,,onet73 7,i7 #dg-jjjj ,construction and ,extraction ,occupations4 7,,ii7 #di-jjjj ,installation1 ,maintenance1 and ,repair ,occupations4 7,,iii7 #ea-jjjj ,production ,occupations4 7,,iv7 #ae-abjj ,computer1 ,information ,technology1 and ,security ,occupations4 7iii7 ,subsequent years ,occupations shall be identified under this subparagraph by utilizing standardized and occupation specific descriptors listed in the ,occupational ,network 7,,onet71 and such occupations shall be updated annually consistent with customary tax document deadlines4 7,c7 ,exceptions ,the term apprenticeship employee shall not include any apprentice-- 7i7 hired more than #ij days prior to enrollment into the qualified registered apprenticeship program1 or 7ii7 reported via a #ajii contractor rather than ,form ,w-#b1 based on ,internal ,revenue ,service standards4 7#b7 ,apprenticeship employer 7,a7 ,in general ,the term apprenticeship employer means an employer that has entered into an agreement with a qualified registered apprenticeship program for the placement of apprenticeship employees4 7,b7 ,exceptions ,such term shall not include an employer-- 7i7 which is exempt from income tax under this chapter1 or 7ii7 which is the sponsor of the registered apprenticeship program1 or is related to the sponsor for which the apprenticeship employee is enrolled4 7#c7 ,qualified registered apprenticeship program ,the term qualified registered apprenticeship program means an apprenticeship registered under the ,act of ,august #af1 #aicg 7commonly known as the ,national ,apprenticeship ,act2 #ej ,stat4 #ffd1 chapter #ffc2 #bi ,u4,s4,c4 #ej et seq47 that meets the standards of subpart ,a of part #bi and part #cj of title #bi1 ,code of ,federal ,regulations4 7#d7 ,recently separated veteran ,the term recently separated veteran means any veteran who is enrolled into the qualified registered apprenticeship program to which the credit relates not more than #d years after having been discharged or released from active duty in the ,armed ,forces of the ,united ,states4 7#e7 ,member of ,national ,guard or reserve component of ,armed ,forces ,the term member of the ,national ,guard or reserve component of the ,armed ,forces means any member of a reserve component of the ,armed ,forces 7as defined in section #ajaja of title #aj1 ,united ,states ,code74 7#f7 ,military spouse ,the term military spouse means an individual who is legally married to-- 7,a7 a member of the ,armed ,forces on active duty1 7,b7 a member of the ,national ,guard or reserve component1 or 7,c7 a veteran who was discharged or released from active duty in the ,armed ,forces of the ,united ,states not before the #d-year period ending on the date the individual enrolls in the qualified registered apprenticeship program to which the credit relates4 7#g7 ,new hire ,the term new hire means an individual who first begins work as an employee for the employer not more than #ij days before such individual's enrollment in qualified registered apprenticeship program to which the credit determined under this section with respect to the employee relates4 7#h7 ,reduced credit where apprentice employed for fewer than #ahj days 7,a7 ,in general ,in the case of a taxable year during which the apprenticeship employee is employed under a qualified apprenticeship program of the employer for at least #ij days1 but fewer than #ahj days1 the applicable credit amount with respect to such employee for such taxable year shall be reduced to the amount which bears the same ratio to the applicable credit amount with respect to such employee 7determined without regard to this subparagraph7 as-- 7i7 the number of calendar days during the taxable year that the apprenticeship employee is so employed1 bears to 7ii7 #ahj4 7,b7 ,fewer than #ij days ,in the case of a taxable year during which the apprenticeship employee is employed under a qualified apprenticeship program of the employer for fewer than #ij days1 the applicable credit amount with respect to such employee for such taxable year shall be zero4 7,c7 ,carryforward ,the amount by which the credit amount is reduced under subparagraph 7,a7 or 7,b7 with respect to an apprenticeship employee for any taxable year may be carried forward to increase the applicable credit amount otherwise determined with respect to the employee under this section for the succeeding taxable year 7determined without regard to this subparagraph and subsection 7c77#b774 ,any amount carried forward under the preceding sentence shall be subject to any reduction applicable with respect to the employee under subparagraphs 7,a7 and 7,b74 7#i7 ,coordination with other credits ,the amount of credit otherwise allowable under this chapter with respect to compensation paid to any apprenticeship employee shall be reduced by the credit determined under this section with respect to such employee4 7#aj7 ,no credit allowed in case laid-off apprentice ,no credit shall be allowed under this section with respect to an apprenticeship employee if during the taxable year such employee is involuntary terminated by reason of a reduction in workforce or job elimination1 business closure1 downsizing1 or restructuring1 or any other non disciplinary termination initiated by the employer4 7#aa7 ,no credit allowed in case of remuneration from apprenticeship employee 7,a7 ,in general ,no credit shall be allowed under this section with respect to an apprenticeship employee if such apprenticeship employee provides any remuneration 7including tuition1 application fees1 or other payments7 to either the apprenticeship employer or the sponsor of the qualified registered apprenticeship program in connection with the apprenticeship employee's participation in such program4 7,b7 ,exception for public or non-profit funding ,subparagraph 7,a7 shall not apply to remuneration provided by the apprenticeship employee if such remuneration is sourced from public funding or private non-profit or foundational organizations intended to serve or support apprenticeship employees1 including funding from the ,workforce ,innovation and ,opportunity ,act1 ,pell ,grants1 the ,supplemental ,nutrition ,assistance ,program1 ,temporary ,assistance for ,needy ,families1 or other similar public or private non-profit or foundational organizations4 7e7 ,apprenticeship tax credit eligibility certificate 7#a7 ,in general ,no credit shall be allowed to an employer under this section with respect to an apprenticeship employee under an apprenticeship program1 unless the employer has received an apprenticeship tax credit eligibility certificate with respect to such apprenticeship employee4 7#b7 ,issuance ,the ,secretary of ,labor shall use data from the ,registered ,apprenticeship ,partners ,information ,database ,system 7hereinafter in this subsection referred to as ,,rapids7 to issue an apprenticeship tax credit eligibility certificates to apprenticeship employers not later than #ca days after the end of each calendar quarter4 ,such certificate shall include the following3 7,a7 ,information identifying to the sponsor of the qualified registered apprenticeship program1 including-- 7i7 the name of the sponsor1 7ii7 the registration agency responsible for monitoring the sponsor1 7iii7 the registration number of the registered apprenticeship program1 7iv7 the ,o-,net ,code for occupation of training1 and 7v7 the ,,rapids ,code for the apprenticeable occupation approved by the ,department of ,labor ,office of ,apprenticeship4 7,b7 ,information identifying the apprenticeship employer1 including-- 7i7 the full legal name of the apprenticeship employer1 7ii7 the mailing address of the apprenticeship employer1 7iii7 the employer registration number assigned in ,,rapids1 and 7iv7 the apprenticeship employer's ,federal ,employer ,identification ,number4 7,c7 ,information identifying the apprenticeship employee1 including-- 7i7 the full legal name of such employee1 7ii7 the social security number or taxpayer identification number of such employee1 7iii7 the dates of apprenticeship1 including the enrollment date1 expected completion date1 the actual completion date 7if applicable71 the date hired by the apprenticeship employer1 the termination date 7if any71 and the reason for exit if such employee is not employed on the last day of the period to which such certificate relates1 and 7iv7 confirmation that the apprenticeship employee is a new hire with respect to the employer and is reported via ,form ,w-#b4 7#c7 ,updating apprentice status rules 7,a7 ,reporting requirements ,the ,secretary of ,labor shall update the reporting requirements set forth in part #bi of title #bi1 ,code of ,federal ,regulations1 which otherwise require a sponsor to update the status of an apprentice within #de days of any change in such status1 to further require that the sponsor ensure all employment status updates are completed within #cj days after the close of a calendar quarter in order to facilitate the issuance of the apprenticeship tax credit eligibility certificate not later than #ca days after the end of the calendar quarter4 ,the ,secretary of ,labor may prescribe regulations to ensure compliance with this reporting requirement4 7,b7 ,apprenticeship agreements ,the ,secretary of ,labor shall update apprenticeship agreement forms to include the following3 7i7 ,the date the apprenticeship employee was hired by the apprenticeship employer4 7ii7 ,the apprenticeship employer confirmation that the apprenticeship employee is reported via ,form ,w-#b4 7iii7 ,the assigned registration number of the apprenticeship employer verifying the apprenticeship employer has a formal agreement with the sponsor of the qualified registered apprenticeship program4 7f7 ,termination of credit based on volume cap 7#a7 ,in general ,this section shall not apply for any taxable year beginning after the date on which the ,secretary 7in consultation with the ,secretary of ,labor7 certifies that the amount of credit determined under this section has reached an amount equal to #e1jjj1jjj1jjj4 7#b7 ,tracking and reporting 7,a7 ,secretary of ,treasury 7i7 ,in general ,the ,secretary shall for purposes of paragraph 7#a7 monitor and regularly calculate the amount of credit determined under this section and publicly certify when the limitation under paragraph 7#a7 has been reached4 7ii7 ,annual reporting ,the ,secretary shall not later than ,march #ca1 #bjbg1 and annually thereafter1 publish an report that details the total amount of credits determined under this section for taxable years ending in the preceding calendar year1 the amount of any under-allocated credits identified under paragraph 7#d77;,a71 the take-up rate of certificates issued under this section for the preceding calendar year1 and the total number of certificates issued under this section for the preceding calendar year4 7iii7 ,take-up rate ,for purposes of clause 7ii71 the term take-up rate means the percentage of apprenticeship tax credit eligibility certificates issued under subsection 7e7 that result in credits determined under this section1 as determined by the ,secretary4 7,b7 ,secretary of ,labor 7i7 ,in general ,the ,secretary of ,labor1 in consultation with the ,secretary1 shall annually review the determinations made by the ,secretary under subparagraph 7,a7 and estimate the extent to which credit limitation under paragraph 7#a7 remains available4 7ii7 ,commensurate adjustment of qualifying infrastructure-related occupations ,based on such review and estimates1 the ,secretary of ,labor may adjust the list of qualifying infrastructure-related occupations identified under section subsection 7e7 to limit the issuance of additional apprenticeship tax credit eligibility certificates if necessary to ensure1 to the extent practicable1 the limitation under paragraph 7#a7 is not exceeded before ,december #ca1 #bjce4 7iii7 ,annual reporting ,for taxable years beginning after ,december #ca1 #bjbf1 any adjustments to the list of qualifying infrastructure-related occupations for a year shall be published by the ,secretary not later than ,september #cj of the preceding year4 7#c7 ,limitation or prioritization when remaining balance is low 7,a7 ,in general ,when the remaining balance of credits allowable under this section1 as determined by the ,secretary under paragraph 7#b77;,a71 is less than #a1jjj1jjj1jjj1 the ,secretary1 in consultation with the ,secretary of ,labor1 may prescribe any of the following3 7i7 ,limiting the qualifying infrastructure-related occupations identified under subsection 7d77#a77;,b7 for which apprenticeship tax credit eligibility certificates may be issued4 7ii7 ,directing the issuance of such certificates to focus on apprenticeship employees who are recently separated veterans1 members of the ,national ,guard or ,reserve ,component of the ,armed ,forces1 or military spouses4 7,b7 ,determination of certificates issued 7i7 ,use of take-up rate ,if the annual report under paragraph 7#b77;,a77ii7 has been issued for the preceding calendar years1 the number of certificates issued under this paragraph shall be determined by adjusting the proportional allocation under paragraph 7#d77;,c77ii77,i7 based on the take-up rate reported under paragraph 7#b77;,a77ii7 for such year1 to ensure that the estimated credit amount resulting from such issuance does not exceed the remaining balance under this section4 7#d7 ,reallocation of under-allocated credits 7,a7 ,in general ,the ,secretary may identify1 as part of the annual report required under paragraph 7#b77;,a71 any under-allocated portion of any apprenticeship infrastructure tax credits or other labor related tax credits for a prior taxable year4 7,b7 ,under-allocated credits ,for purposes of this paragraph1 the term under-allocated credits means the difference between the estimated credit amounts associated with credits determined under this section for the preceding calendar year 7as reported under paragraph 7#b77;,b77 and the actual amount of credits claimed by any taxable entity 7as reported under paragraph 7#b77;,a771 to the extent such difference reflects credits that remain available within the volume cap under paragraph 7#a74 7,c7 ,additional allocation by ,secretary of ,labor 7i7 ,in general ,upon notification from the ,secretary of under-allocated credits identified under subparagraph 7,a71 the ,secretary of ,labor may provide for additional allocation of such credits by issuing additional apprenticeship tax credit eligibility certificates for the succeeding calendar year1 subject to the limitations of clause 7ii74 7ii7 ,limitations ,the limitations of this clause are as follows3 7,i7 ,in general ,if the annual report under paragraph 7#b77;,a77ii7 has been issued for the preceding calendar year1 the number of certificates issued under this paragraph shall be equal to the total number of certificates issued in the preceding calendar year1 as reported under paragraph 7#b77;,a77ii71 adjusted by the take-up rate for such year1 to ensure that the estimated credit amount resulting from such issuance does not exceed the remaining balance under this section4 7,,ii7 ,no annual report ,if the annual report under paragraph 7#b77;,a77ii7 has not been issued for the preceding calendar year1 the number of certificates issued under this paragraph shall be equal to the total number of certificates issued in the preceding calendar year increased by #cj percent4 7,,iii7 ,limitation ,the issuance of additional certificates under this paragraph shall not cause the aggregate volume cap under paragraph 7#a7 to be exceeded4 7,d7 ,reporting ,the ,secretary of ,labor shall include in the annual report required under paragraph 7#b77;,b7 a summary of any additional allocations made under this paragraph1 including the number of additional certificates issued1 the estimated amount of credits associated with such certificates1 the actual amount of credits determined under this section for the preceding calendar year 7as reported by the ,secretary under paragraph 7#b77;,a771 and the occupations targeted by the additional allocations4 7g7 ,regulations ,the ,secretary shall prescribe such rules as may be necessary or appropriate to carry out the purposes of this section1 including guidance for verifying the status of-- 7#a7 individuals as recently separated veterans1 ,members of the ,national ,guard or ,reserve ,component of the ,armed ,forces1 or military spouses1 7#b7 qualified registered apprenticeship programs1 7#c7 apprenticeship employers and apprenticeship employees1 and 7#d7 apprenticeship employees1 including that such employees are reported via ,form ,w-#b1 not a #ajii contractor1 based on ,internal ,revenue ,service standards4 4 7b7 ,denial of double benefit ,section #bhj;,c7a7 of such ,code is amended by inserting #de;,,bb7a71 after #de,s7a714 7c7 ,credit made part of general business credit ,section #ch7;b7 of such ,code is amended by striking plus at the end of paragraph 7#dj71 by striking the period at the end of paragraph 7#da7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#db7 the apprenticeship tax credit determined under section #de;,,bb7a74 4 7d7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de;,,bb4 ,apprenticeship tax credit for employers4 4 7e7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbe4