I 

113TH CONGRESS 

1ST SESSION H. R. 1324 

To amend the Internal Revenue Code of 1986 to allow employers a credit 

against income tax for wages paid to employees who participate in 

qualified apprenticeship programs. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 21, 2013 

Ms. SEWELL of Alabama (for herself, Mr. CROWLEY, and Mr. RYAN of Ohio) 

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 wages paid to 

employees who participate in qualified apprenticeship 

programs. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Workforce Develop5 ment Tax Credit Act of 2013’’. 


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1 SEC. 2. CREDIT FOR WAGES PAID TO EMPLOYEES PARTICI2 PATING IN QUALIFIED APPRENTICESHIP 

3 PROGRAMS. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to business-related credits) is amended by 

7 adding at the end the following new section: 

8 ‘‘SEC. 45S. WAGES PAID TO EMPLOYEES PARTICIPATING IN 

9 QUALIFIED APPRENTICESHIP PROGRAMS. 

10 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

11 apprenticeship credit determined under this section for the 

12 taxable year is the sum of— 

13 ‘‘(1) the apprenticeship period credit, and 

14 ‘‘(2) the post-apprenticeship credit. 

15 ‘‘(b) APPRENTICESHIP PERIOD CREDIT.—For pur16 poses of subsection (a)— 

17 ‘‘(1) IN GENERAL.—The apprenticeship period 

18 credit for the taxable year is 50 percent of the wages 

19 paid for services rendered during the taxable year to 

20 each apprenticeship employee but only if such wages 

21 are paid for services rendered during a qualified 

22 training year of such employee (whether or not such 

23 employee is an employee of the taxpayer as of the 

24 close of such taxable year). 

25 ‘‘(2) LIMITATION ON WAGES PER YEAR TAKEN

26 INTO ACCOUNT.—The amount of wages which may 


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1 be taken into account under paragraph (1) with re2 spect to any apprenticeship employee for each quali3 fied training year shall not exceed $2,000. 

4 ‘‘(c) POST-APPRENTICESHIP CREDIT.—For purposes 

5 of subsection (a)— 

6 ‘‘(1) IN GENERAL.—The post-apprenticeship 

7 credit for the taxable year is 40 percent of the wages 

8 paid for services rendered during the taxable year 

9 and the preceding taxable year to each employee who 

10 has successfully completed a qualified training pro11 gram of the employer, but only if such wages are 

12 paid by such employer for services rendered during 

13 the 2-year period which begins on the day after the 

14 employee’s completion of such program. 

15 ‘‘(2) LIMITATION ON WAGES PER YEAR TAKEN

16 INTO ACCOUNT.—The amount of wages which may 

17 be taken into account under paragraph (1) for a tax18 able year with respect to any apprenticeship em19 ployee shall not exceed $6,000. 

20 ‘‘(d) DEFINITIONS.—For purposes of this section— 

21 ‘‘(1) WAGES.—The term ‘wages’ has the mean22 ing given to such term by section 51(c), determined 

23 without regard to paragraph (4) thereof. 

24 ‘‘(2) APPRENTICESHIP EMPLOYEE.—The term 

25 ‘apprenticeship employee’ means any employee who 


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1 is employed by the employer pursuant to an appren2 tice agreement registered with the Office of Appren3 ticeship of the Employment and Training Adminis4 tration of the Department of Labor. 

5 ‘‘(3) QUALIFIED TRAINING YEAR.— 

6 ‘‘(A) IN GENERAL.—The term ‘qualified 

7 training year’ means each year during the 

8 training period in which— 

9 ‘‘(i) the employee is employed by the 

10 employer for at least 25 hours per week 

11 during 28 consecutive weeks of such year, 

12 and 

13 ‘‘(ii) the employee completes at least 8 

14 credit hours of classroom work under a 

15 qualified training program for each semes16 ter of such program ending during such 

17 year. 

18 ‘‘(B) QUALIFIED TRAINING PROGRAM.— 

19 The term ‘qualified training program’ means 

20 any training program undertaken pursuant to 

21 the agreement referred to in paragraph (2). 

22 ‘‘(C) TRAINING PERIOD.—The term ‘train23 ing period’ means, with respect to an employee, 

24 the period— 


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1 ‘‘(i) beginning on the date that the 

2 employee begins employment with the tax3 payer as an apprentice under a qualified 

4 training program, and 

5 ‘‘(ii) ending on the earlier of— 

6 ‘‘(I) the date that such appren7 ticeship with the employer ends, or 

8 ‘‘(II) the date which is 4 years 

9 after the date referred to in clause (i). 

10 ‘‘(e) COORDINATION WITH OTHER CREDITS.—The 

11 amount of credit otherwise allowable under sections 45A, 

12 51(a), and 1396(a) with respect to any employee shall be 

13 reduced by the credit allowed by this section with respect 

14 to such employee. 

15 ‘‘(f) CERTAIN RULES TO APPLY.—Rules similar to 

16 the rules of subsections (i)(1) and (k) of section 51 shall 

17 apply for purposes of this section.’’. 

18 (b) CREDIT MADE PART OF GENERAL BUSINESS

19 CREDIT.—Subsection (b) of section 38 of such Code is 

20 amended by striking ‘‘plus’’ at the end of paragraph (35), 

21 by striking the period at the end of paragraph (36) and 

22 inserting ‘‘, plus’’, and by adding at the end the following 

23 new paragraph: 

24 ‘‘(37) the apprenticeship credit determined 

25 under section 45S(a).’’. 


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1 (c) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 

2 of section 280C of such Code is amended by inserting 

3 ‘‘45S(a),’’ after ‘‘45P(a),’’. 

4 (d) CLERICAL AMENDMENT.—The table of sections 

5 for subpart D of part IV of subchapter A of chapter 1 

6 of such Code is amended by adding at the end the fol7 lowing new item: 

‘‘Sec. 45S. Wages paid to employees participating in qualified apprenticeship 

programs.’’. 

8 (e) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to individuals commencing appren10 ticeship programs after the date of the enactment of this 

11 Act. 

Æ 


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