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 em-
ployers a credit against income tax for wages paid to 
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 ‘‘Workforce Develop-
ment Tax Credit Act of 2013’’. 
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SEC. 2. CREDIT FOR WAGES PAID TO EMPLOYEES PARTICI-
PATING 
IN 
QUALIFIED 
APPRENTICESHIP 
PROGRAMS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business-related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 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 pur-
poses 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 
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be taken into account under paragraph (1) with re-
spect to any apprenticeship employee for each quali-
fied 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 pro-
gram of the employer, but only if 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. 
‘‘(2) LIMITATION ON WAGES PER YEAR TAKEN 
INTO ACCOUNT.—The amount of wages which may 
be taken into account under paragraph (1) for a tax-
able year with respect to any apprenticeship em-
ployee shall not exceed $6,000. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) WAGES.—The term ‘wages’ has the mean-
ing given to such term by section 51(c), determined 
without regard to paragraph (4) thereof. 
‘‘(2) APPRENTICESHIP EMPLOYEE.—The term 
‘apprenticeship employee’ means any employee who 
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is employed by the employer pursuant to an appren-
tice agreement registered with the Office of Appren-
ticeship of the Employment and Training Adminis-
tration of the Department of Labor. 
‘‘(3) QUALIFIED TRAINING YEAR.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
training year’ means each year during the 
training period in which— 
‘‘(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 semes-
ter of such program ending during such 
year. 
‘‘(B) QUALIFIED
TRAINING
PROGRAM.— 
The term ‘qualified training program’ means 
any training program undertaken pursuant to 
the agreement referred to in paragraph (2). 
‘‘(C) TRAINING PERIOD.—The term ‘train-
ing period’ means, with respect to an employee, 
the period— 
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‘‘(i) beginning on the date that the 
employee begins employment with the tax-
payer as an apprentice under a qualified 
training program, and 
‘‘(ii) ending on the earlier of— 
‘‘(I) the date that such appren-
ticeship with the employer ends, or 
‘‘(II) the date which is 4 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’’ 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).’’. 
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(c) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 
of section 280C of such Code 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 such Code is amended by adding at the end the fol-
lowing 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 appren-
ticeship programs after the date of the enactment of this 
Act. 
Æ 
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