[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7852 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 7852
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for employees who participate in qualified
apprenticeship programs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 29, 2024
Ms. Wilson of Florida introduced the following bill; which was referred
to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for employees who participate in qualified
apprenticeship programs.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Leveraging and Energizing America's
Apprenticeship Programs Act'' or the ``LEAP Act''.
SEC. 2. CREDIT FOR EMPLOYEES PARTICIPATING IN QUALIFIED APPRENTICESHIP
PROGRAMS.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45BB. EMPLOYEES PARTICIPATING IN QUALIFIED APPRENTICESHIP
PROGRAMS.
``(a) In General.--For purposes of section 38, the apprenticeship
credit determined under this section for the taxable year is an amount
equal to the sum of the applicable credit amounts (as determined under
subsection (b)) for each of the apprenticeship employees of the
employer that exceeds the applicable apprenticeship level (as
determined under subsection (e)) during such taxable year.
``(b) Applicable Credit Amount.--For purposes of subsection (a),
the applicable credit amount for each apprenticeship employee for each
taxable year is equal to--
``(1) in the case of an apprenticeship employee who has not
attained 25 years of age at the close of the taxable year,
$1,500, or
``(2) in the case of an apprenticeship employee who has
attained 25 years of age at the close of the taxable year,
$1,000.
``(c) Limitation on Number of Years Which Credit May Be Taken Into
Account.--The apprenticeship credit shall not be allowed for more than
2 taxable years with respect to any apprenticeship employee.
``(d) Apprenticeship Employee.--For purposes of this section--
``(1) In general.--The term `apprenticeship employee' means
any employee who is--
``(A) a party to an apprenticeship agreement
registered with--
``(i) the Office of Apprenticeship of the
Employment and Training Administration of the
Department of Labor, or
``(ii) a recognized State apprenticeship
agency, and
``(B) employed by the employer in the occupation
identified in the apprenticeship agreement described in
subparagraph (A), whether or not the employer is a
party to such agreement.
``(2) Minimum completion rate for eligible apprenticeship
programs.--An employee shall not be treated as an
apprenticeship employee unless such apprenticeship agreement is
with an apprenticeship program that, for the two-year period
ending on the date of the apprenticeship begins, has a
completion rate of at least 50 percent.
``(e) Applicable Apprenticeship Level.--
``(1) In general.--For purposes of this section, the
applicable apprenticeship level shall be equal to--
``(A) in the case of any apprenticeship employees
described in subsection (b)(1), the amount equal to 80
percent of the average number of such apprenticeship
employees of the employer for the 3 taxable years
preceding the taxable year for which the credit is
being determined, rounded to the next lower whole
number, and
``(B) in the case of any apprenticeship employees
described in subsection (b)(2), the amount equal to 80
percent of the average number of such apprenticeship
employees of the employer for the 3 taxable years
preceding the taxable year for which the credit is
being determined, rounded to the next lower whole
number.
``(2) First year of new apprenticeship programs.--In the
case of an employer which did not have any apprenticeship
employees during any taxable year in the 3 taxable years
preceding the taxable year for which the credit is being
determined, the applicable apprenticeship level shall be equal
to zero.
``(f) Coordination With Other Credits.--The amount of credit
otherwise allowable under sections 45A, 51(a), and 1396(a) with respect
to any employee shall be reduced by the credit allowed by this section
with respect to such employee.
``(g) Certain Rules To Apply.--Rules similar to the rules of
subsections (i)(1) and (k) of section 51 shall apply for purposes of
this section.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of such Code is amended by striking ``plus'' at the end of
paragraph (37), by striking the period at the end of paragraph (38) and
inserting a comma, by striking the period at the end of paragraph (41)
and inserting ``, plus'', and adding at the end the following new
paragraph:
``(42) the apprenticeship credit determined under section
45BB(a).''.
(c) Denial of Double Benefit.--Subsection (a) of section 280C of
such Code is amended by inserting ``45BB(a),'' after ``45S(a),''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45BB. Employees participating in qualified apprenticeship
programs.''.
(e) Effective Date.--The amendments made by this section shall
apply to individuals commencing apprenticeship programs after the date
of the enactment of this Act.
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