I 
115TH CONGRESS 
1ST SESSION H. R. 1190 
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 
FEBRUARY 16, 2017 
Ms. SEWELL of Alabama (for herself, Mr. BYRNE, Mr. RYAN of Ohio, Ms. 
SHEA-PORTER, Ms. JACKSON LEE, Ms. ESTY, Mr. MEEKS, Mr. KIND, 
Ms. KELLY of Illinois, Mr. NOLAN, and Mr. KILMER) introduced the fol-
lowing 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 2017’’. 
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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 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— 
‘‘(i) during the 2-year period which 
begins on the day after the employee’s 
completion of such program, and 
‘‘(ii) during the qualified employment 
period of such employee, and 
‘‘(B) the employee is performing such serv-
ices in a position which utilizes skills acquired 
in the qualified training program. 
‘‘(2) LIMITATION ON WAGES TAKEN INTO AC-
COUNT.—The amount of wages which may be taken 
into account under paragraph (1) with respect to 
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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 regula-
tions, 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 indi-
vidual completed such program. 
‘‘(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 
is employed by the employer pursuant to an appren-
tice 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 Appren-
ticeship of the Employment and Training Ad-
ministration of the Department of Labor. 
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‘‘(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— 
‘‘(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— 
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‘‘(I) the date that such appren-
ticeship with the employer ends, or 
‘‘(II) the date which is 2 years 
after the date referred to in clause (i). 
‘‘(4) QUALIFIED
EMPLOYMENT
PERIOD.—The 
term ‘qualified employment period’ means the pe-
riod— 
‘‘(A) beginning on the date that the em-
ployee begins employment with the taxpayer 
after the employee’s completion of a qualified 
training program of the taxpayer, and 
‘‘(B) ending on the earlier of— 
‘‘(i) the date that such employment 
ends, or 
‘‘(ii) the date which is 1 year after the 
date referred to in subparagraph (A). 
‘‘(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.’’. 
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(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).’’. 
(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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