LEAP Act

To amend the Internal Revenue Code of 1986 to allow employers a credit against income tax for employees who participate in qualified apprenticeship programs. 1. Short title This Act may be cited as the Leveraging and Energizing America’s Apprenticeship Programs Act LEAP Act 2. Credit for employees participating in qualified apprenticeship programs (a) In general Subpart D of part IV of subchapter A of chapter 1 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 (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 plus , plus (37) the apprenticeship credit determined under section 45S(a). . (c) Denial of double benefit Subsection (a) of section 280C 45S(a), 45P(a), (d) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 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 hiring an apprentice who has not attained age 25 at the close of the taxable year or $1,000 for an apprentice who has attained age 25. Allows such credit for no more than 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.