I 
115TH CONGRESS 
1ST SESSION H. R. 3061 
To amend the Internal Revenue Code of 1986 to allow employers a credit 
against income tax for employees who participate in qualified apprentice-
ship programs. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 26, 2017 
Mr. REED (for himself and Ms. SA´NCHEZ) 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 em-
ployers a credit against income tax for employees who 
participate in qualified apprenticeship programs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Leveraging and Ener-
gizing America’s Apprenticeship Programs Act’’ or the 
‘‘LEAP Act’’. 
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SEC. 2. CREDIT FOR EMPLOYEES PARTICIPATING IN QUALI-
FIED APPRENTICESHIP PROGRAMS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter 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 AP-
PRENTICESHIP 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 applica-
ble credit amounts (as determined under subsection (b)) 
for each apprentice of the employer that exceeds the appli-
cable 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 at-
tained 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 appren-
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ticeship 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 Appren-
ticeship of the Employment and Training Adminis-
tration of the Department of Labor, and 
‘‘(2) pursuant to an apprentice agreement reg-
istered 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 Appren-
ticeship of the Employment and Training Ad-
ministration of the Department of Labor. 
‘‘(e) APPLICABLE APPRENTICESHIP LEVEL.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the applicable apprenticeship level shall be 
equal to— 
‘‘(A) in the case of any apprentice de-
scribed in subsection (b)(1), the amount equal 
to 80 percent of the average number of such 
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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 de-
scribed 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.’’. 
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(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 add-
ing 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 add-
ing 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 appren-
ticeship programs after the date of the enactment of this 
Act. 
Æ 
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