allowed under this section shall not be taken 
into account. 
‘‘(B) RULES
FOR
DETERMINING
EM-
PLOYER SIZE.—For purposes of subparagraph 
(A)— 
‘‘(i) APPLICATION
OF
AGGREGATION 
RULE FOR EMPLOYERS.—All persons treat-
ed as a single employer under subsection 
(b), (c), (m), or (o) of section 414 shall be 
treated as 1 employer. 
‘‘(ii) EMPLOYERS NOT IN EXISTENCE 
IN PRECEDING YEAR.—In the case of an 
employer which was not in existence 
throughout the preceding calendar year, 
the determination of whether such em-
ployer is an eligible employer shall be 
based on the average number of employees 
that it is reasonably expected such em-
ployer will employ on business days in the 
current calendar year. 
‘‘(iii) PREDECESSORS.—Any reference 
in this paragraph to an employer shall in-
clude a reference to any predecessor of 
such employer. 
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‘‘(2) NEW
APPRENTICE.—The term ‘new ap-
prentice’ means an employee who, with respect to an 
eligible employer— 
‘‘(A) completed during the taxable year a 
qualified apprenticeship program, and 
‘‘(B) prior to beginning the qualified ap-
prenticeship program, has not received com-
pensation during the preceding 1-year period 
for services provided to the eligible employer. 
‘‘(3) MID-CAREER
APPRENTICE.—The term 
‘mid-career apprentice’ means an employee who— 
‘‘(A) prior to being employed by the eligi-
ble employer was either— 
‘‘(i) employed in an industry sector 
different from the industry section the eli-
gible employer is in, as determined under 
regulations of the Secretary, or 
‘‘(ii) or was unemployed, and 
‘‘(B) completed during the taxable year a 
qualified apprenticeship program. 
‘‘(4) 
COMPLETED
APPRENTICESHIP
EM-
PLOYEE.—The term ‘completed apprenticeship em-
ployee’ means an employee who, with respect to an 
eligible employer, completed 1 year of service with 
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the eligible employer during the taxable year after 
completing a qualified apprenticeship program. 
‘‘(5) QUALIFIED APPRENTICESHIP PROGRAM.— 
The term ‘qualified apprenticeship program’ means 
an apprenticeship program in a field of science, tech-
nology, engineering, or math that is recognized 
under any program administered by the Secretary of 
Labor. 
‘‘(6) UNEMPLOYED.—An individual is unem-
ployed if the individual is certified by the designated 
local agency as being in receipt of unemployment 
compensation under State or Federal law for not 
less than 4 weeks during the 1-year period ending 
on the hiring date. 
‘‘(7) HIRING DATE; DESIGNATED LOCAL AGEN-
CY.—The terms ‘hiring date’ and ‘designated local 
agency’ have the meanings given such terms by sec-
tion 51(d) (11) and (12), respectively. 
‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction 
or credit shall be allowed under any other provision of this 
chapter for any expenses paid or incurred with respect to 
an individual to the extent of the credit allowed under this 
section with respect to the individual.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code, as 
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amended by section 4, is amended by striking ‘‘plus’’ at 
the end of paragraph (37), by striking the period at the 
end of paragraph (38) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(39) the STEM apprenticeship credit deter-
mined under section 45U(a).’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 
of section 280C of such Code is amended by inserting 
‘‘45U(a),’’ after ‘‘45T(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. 45U. STEM apprenticeship credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2017. 
SEC. 6. MANDATORY MINIMUM ALLOCATION OF PORTION 
OF FEDERAL WORK-STUDY PROGRAM FUNDS 
FOR STEM EMPLOYMENT. 
(a) MANDATORY MINIMUM ALLOCATION FOR STEM 
EMPLOYMENT.—Section 443(b)(2) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 2753(b)(2)) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (A); 
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(2) by redesignating subparagraph (B) as sub-
paragraph (C); and 
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) for fiscal year 2019 and succeeding 
fiscal years, an institution shall use at least 7 
percent of the total amount of funds granted to 
such institution under this section for such fis-
cal year to compensate students employed in 
science, technology, engineering, or mathe-
matics, except that the Secretary may waive 
this subparagraph if the Secretary determines 
that enforcing this subparagraph would cause 
hardship for students at the institution.’’. 
(b) CONFORMING AMENDMENT RELATING TO OFF- 
CAMPUS STEM EMPLOYMENT FOR STUDENTS AT PRO-
PRIETARY INSTITUTIONS OF HIGHER EDUCATION.—Sec-
tion 443(b)(8) of such Act (20 U.S.C. 2753(b)(8)) is 
amended— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(A); 
(2) by adding ‘‘or’’ at the end of subparagraph 
(B); and 
(3) by adding at the end the following new sub-
paragraph: 
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‘‘(C) in science, technology, engineering, or 
mathematics, in accordance with paragraph 
(2)(B) of this subsection;’’. 
Æ 
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