Workforce Development Tax Credit Act of 2015

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. Short title This Act may be cited as the Workforce Development Tax Credit Act of 2015 2. Credit for wages paid to employees participating in qualified apprenticeship programs (a) In general Subpart D of part IV of subchapter A of chapter 1 45S. Wages paid to 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 the sum of— (1) the apprenticeship period credit, and (2) the post-apprenticeship credit. (b) Apprenticeship period credit For purposes of subsection (a)— (1) In general The apprenticeship period credit for the taxable year is 50 percent of the wages paid for services rendered during the taxable year to each apprenticeship employee but only if such wages are paid for services rendered during a qualified training year of such employee (whether or not such employee is an employee of the taxpayer as of the close of such taxable year). (2) Limitation on wages per year taken into account The amount of wages which may be taken into account under paragraph (1) with respect to any apprenticeship employee for each qualified training year shall not exceed $2,000. (c) Post-Apprenticeship credit For purposes of subsection (a)— (1) In general The post-apprenticeship credit for the taxable year is 40 percent of the wages paid for services rendered during the taxable year and the preceding taxable year to each employee who has successfully completed a qualified training program of the employer, but only if— (A) such wages are paid by such employer for services rendered during the 2-year period which begins on the day after the employee’s completion of such program, and (B) the employee is performing such services in a position which utilizes skills acquired in the qualified training program. (2) Limitation on wages per year taken into account The amount of wages which may be taken into account under paragraph (1) for a taxable year with respect to any apprenticeship employee shall not exceed $6,000. (3) Recapture for failure of employee to serve at least 1 year after completion of apprenticeship The Secretary shall, by regulations, provide for recapturing the amount of any post-apprenticeship credit allowed under subsection (a) with respect to any individual who is employed by the employer for less than 1 year after the individual completed such program. (d) Definitions For purposes of this section— (1) Wages The term wages (2) Apprenticeship employee The term apprenticeship employee (3) Qualified training year (A) In general The term qualified training year (i) the employee is employed by the employer for at least 25 hours per week during 28 consecutive weeks of such year, and (ii) the employee completes at least 8 credit hours of classroom work under a qualified training program for each semester of such program ending during such year. (B) Qualified training program The term qualified training program (C) Training period The term training period (i) beginning on the date that the employee begins employment with the taxpayer as an apprentice under a qualified training program, and (ii) ending on the earlier of— (I) the date that such apprenticeship with the employer ends, or (II) the date which is 2 years after the date referred to in clause (i). (e) 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. (f) 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 , plus (37) the apprenticeship credit determined under section 45S(a). . (c) Denial of double benefit Subsection (a) of section 280C of such Code is amended by inserting 45S(a), 45P(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. 45S. Wages paid to 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: Workforce Development Tax Credit Act of 2015 Amends the Internal Revenue Code to allow a business-related tax credit for: (1) 50% of wages (up to $2,000) paid to an apprenticeship employee during an apprenticeship period, and (2) 40% of wages (up to $6,000) paid to such an employee during a post-apprenticeship period. Defines "apprenticeship employee" as any employee employed by an employer pursuant to an apprentice agreement registered with the Office of Apprenticeship of the Employment and Training Administration of the Department of Labor.