LEAP Act

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. 45S. 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 apprentice 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 apprentice for each taxable year 
is equal to--
            ``(1) in the case of an apprentice who has not attained 25 
        years of age at the close of the taxable year, $1,500, or
            ``(2) in the case of an apprentice 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 apprentice.
    ``(d) Apprentice.--For purposes of this section, the term 
`apprentice' means any employee who is employed by the employer--
            ``(1) in an officially recognized apprenticeable 
        occupation, as determined by the Office of Apprenticeship of 
        the Employment and Training Administration of the Department of 
        Labor, and
            ``(2) pursuant to an apprentice agreement registered with--
                    ``(A) the Office of Apprenticeship of the 
                Employment and Training Administration of the 
                Department of Labor, or
                    ``(B) a recognized State apprenticeship agency, as 
                determined by the Office of Apprenticeship of the 
                Employment and Training Administration of the 
                Department of Labor.
    ``(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 apprentice described in 
                subsection (b)(1), the amount equal to 80 percent of 
                the average number of such apprentices 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 apprentices described in 
                subsection (b)(2), the amount equal to 80 percent of 
                the average number of such apprentices 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 apprentices 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 the Internal Revenue Code of 1986 is amended by striking 
``plus'' at the end of paragraph (35), by striking the period at the 
end of paragraph (36) and inserting ``, plus'', and by adding at the 
end the following new paragraph:
            ``(37) the apprenticeship credit determined under section 
        45S(a).''.
    (c) Denial of Double Benefit.--Subsection (a) of section 280C of 
the Internal Revenue Code of 1986 is amended by inserting ``45S(a),'' 
after ``45P(a),''.
    (d) Clerical Amendment.--The table of sections for 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 item:

``Sec. 45S. 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.

Summary: Leveraging and Energizing America's Apprenticeship Programs Act or the LEAP Act Amends the Internal Revenue Code to allow employers a business-related tax credit of $1,500 for hiringnbsp, an apprentice who has not attained age 25nbsp. At the close of the taxable year or $1,000 for an apprentice who has attained age 25. Allows such credit for no more thannbsp. Two taxable years with respect to any apprentice. Defines apprentice as an employee who is employed in an officially-recognized apprenticeable occupation pursuant to an apprentice agreement registered with the Office of Apprenticeship of the Employment and Training Administration of the Department of Labor or a recognized state apprenticeship agency.