‘‘(ii) reported via a 1099 contractor 
rather than Form W–2, based on Internal 
Revenue Service standards. 
‘‘(2) APPRENTICESHIP EMPLOYER.— 
‘‘(A) IN GENERAL.—The term ‘apprentice-
ship employer’ means an employer that has en-
tered into an agreement with a qualified reg-
istered apprenticeship program for the place-
ment of apprenticeship employees. 
‘‘(B) EXCEPTIONS.—Such term shall not 
include an employer— 
‘‘(i) which is exempt from income tax 
under this chapter, or 
‘‘(ii) which is the sponsor of the reg-
istered apprenticeship program, or is re-
lated to the sponsor for which the appren-
ticeship employee is enrolled. 
‘‘(3) QUALIFIED REGISTERED APPRENTICESHIP 
PROGRAM.—The term ‘qualified registered appren-
ticeship program’ means an apprenticeship reg-
istered under the Act of August 16, 1937 (commonly 
known as the ‘National Apprenticeship Act’; 50 
Stat. 664, chapter 663; 29 U.S.C. 50 et seq.) that 
meets the standards of subpart A of part 29 and 
part 30 of title 29, Code of Federal Regulations. 
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‘‘(4) RECENTLY
SEPARATED
VETERAN.—The 
term ‘recently separated veteran’ means any veteran 
who is enrolled into the qualified registered appren-
ticeship program to which the credit relates not 
more than 4 years after having been discharged or 
released from active duty in the Armed Forces of 
the United States. 
‘‘(5) MEMBER
OF
NATIONAL
GUARD
OR
RE-
SERVE COMPONENT OF ARMED FORCES.—The term 
member of the National Guard or reserve component 
of the Armed Forces means any member of a reserve 
component of the Armed Forces (as defined in sec-
tion 10101 of title 10, United States Code). 
‘‘(6) MILITARY
SPOUSE.—The term ‘military 
spouse’ means an individual who is legally married 
to— 
‘‘(A) a member of the Armed Forces on 
active duty, 
‘‘(B) a member of the National Guard or 
reserve component, or 
‘‘(C) a veteran who was discharged or re-
leased from active duty in the Armed Forces of 
the United States not before the 4-year period 
ending on the date the individual enrolls in the 
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qualified registered apprenticeship program to 
which the credit relates. 
‘‘(7) NEW HIRE.—The term ‘new hire’ means 
an individual who first begins work as an employee 
for the employer not more than 90 days before such 
individual’s enrollment in qualified registered ap-
prenticeship program to which the credit determined 
under this section with respect to the employee re-
lates. 
‘‘(8) REDUCED
CREDIT
WHERE
APPRENTICE 
EMPLOYED FOR FEWER THAN 180 DAYS.— 
‘‘(A) IN GENERAL.—In the case of a tax-
able year during which the apprenticeship em-
ployee is employed under a qualified apprentice-
ship program of the employer for at least 90 
days, but fewer than 180 days, the applicable 
credit amount with respect to such employee for 
such taxable year shall be reduced to the 
amount which bears the same ratio to the appli-
cable credit amount with respect to such em-
ployee (determined without regard to this sub-
paragraph) as— 
‘‘(i) the number of calendar days dur-
ing the taxable year that the apprentice-
ship employee is so employed, bears to 
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‘‘(ii) 180. 
‘‘(B) FEWER THAN 90 DAYS.—In the case 
of a taxable year during which the apprentice-
ship employee is employed under a qualified ap-
prenticeship program of the employer for fewer 
than 90 days, the applicable credit amount with 
respect to such employee for such taxable year 
shall be zero. 
‘‘(C) CARRYFORWARD.—The amount by 
which the credit amount is reduced under sub-
paragraph (A) or (B) with respect to an ap-
prenticeship employee for any taxable year may 
be carried forward to increase the applicable 
credit amount otherwise determined with re-
spect to the employee under this section for the 
succeeding taxable year (determined without re-
gard to this subparagraph and subsection 
(c)(2)). Any amount carried forward under the 
preceding sentence shall be subject to any re-
duction applicable with respect to the employee 
under subparagraphs (A) and (B). 
‘‘(9) COORDINATION WITH OTHER CREDITS.— 
The amount of credit otherwise allowable under this 
chapter with respect to compensation paid to any 
apprenticeship employee shall be reduced by the 
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credit determined under this section with respect to 
such employee. 
‘‘(10) NO CREDIT ALLOWED IN CASE LAID-OFF 
APPRENTICE.—No credit shall be allowed under this 
section with respect to an apprenticeship employee if 
during the taxable year such employee is involuntary 
terminated by reason of a reduction in workforce or 
job elimination, business closure, downsizing, or re-
structuring, or any other non disciplinary termi-
nation initiated by the employer. 
‘‘(11) NO CREDIT ALLOWED IN CASE OF REMU-
NERATION FROM APPRENTICESHIP EMPLOYEE.— 
‘‘(A) IN GENERAL.—No credit shall be al-
lowed under this section with respect to an ap-
prenticeship employee if such apprenticeship 
employee provides any remuneration (including 
tuition, application fees, or other payments) to 
either the apprenticeship employer or the spon-
sor of the qualified registered apprenticeship 
program in connection with the apprenticeship 
employee’s participation in such program. 
‘‘(B) EXCEPTION
FOR
PUBLIC
OR
NON- 
PROFIT FUNDING.—Subparagraph (A) shall not 
apply to remuneration provided by the appren-
ticeship employee if such remuneration is 
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sourced from public funding or private non- 
profit or foundational organizations intended to 
serve or support apprenticeship employees, in-
cluding funding from the Workforce Innovation 
and Opportunity Act, Pell Grants, the Supple-
mental Nutrition Assistance Program, Tem-
porary Assistance for Needy Families, or other 
similar 
public 
or 
private 
non-profit 
or 
foundational organizations. 
‘‘(e) APPRENTICESHIP TAX CREDIT ELIGIBILITY 
CERTIFICATE.— 
‘‘(1) IN GENERAL.—No credit shall be allowed 
to an employer under this section with respect to an 
apprenticeship employee under an apprenticeship 
program, unless the employer has received an ap-
prenticeship tax credit eligibility certificate with re-
spect to such apprenticeship employee. 
‘‘(2) ISSUANCE.—The Secretary of Labor shall 
use data from the Registered Apprenticeship Part-
ners Information Database System (hereinafter in 
this subsection referred to as ‘RAPIDS’) to issue an 
apprenticeship tax credit eligibility certificates to ap-
prenticeship employers not later than 31 days after 
the end of each calendar quarter. Such certificate 
shall include the following: 
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‘‘(C) Information identifying the appren-
ticeship employee, including— 
‘‘(i) the full legal name of such em-
ployee, 
‘‘(ii) the social security number or 
taxpayer identification number of such em-
ployee, 
‘‘(iii) the dates of apprenticeship, in-
cluding the enrollment date, expected com-
pletion date, the actual completion date (if 
applicable), the date hired by the appren-
ticeship employer, the termination date (if 
any), and the reason for exit if such em-
ployee is not employed on the last day of 
the period to which such certificate relates, 
and 
‘‘(iv) confirmation that the apprentice-
ship employee is a new hire with respect to 
the employer and is reported via Form W– 
2. 
‘‘(3) UPDATING APPRENTICE STATUS RULES.— 
‘‘(A) REPORTING
REQUIREMENTS.—The 
Secretary of Labor shall update the reporting 
requirements set forth in part 29 of title 29, 
Code of Federal Regulations, which otherwise 
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require a sponsor to update the status of an ap-
prentice within 45 days of any change in such 
status, to further require that the sponsor en-
sure all employment status updates are com-
pleted within 30 days after the close of a cal-
endar quarter in order to facilitate the issuance 
of the apprenticeship tax credit eligibility cer-
tificate not later than 31 days after the end of 
the calendar quarter. The Secretary of Labor 
may prescribe regulations to ensure compliance 
with this reporting requirement. 
‘‘(B) APPRENTICESHIP
AGREEMENTS.— 
The Secretary of Labor shall update apprentice-
ship agreement forms to include the following: 
‘‘(i) The date the apprenticeship em-
ployee was hired by the apprenticeship em-
ployer. 
‘‘(ii) The apprenticeship employer 
confirmation that the apprenticeship em-
ployee is reported via Form W–2. 
‘‘(iii) The assigned registration num-
ber 
of 
the 
apprenticeship 
employer 
verifying the apprenticeship employer has a 
formal agreement with the sponsor of the 
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qualified registered apprenticeship pro-
gram. 
‘‘(f) TERMINATION OF CREDIT BASED ON VOLUME 
CAP.— 
‘‘(1) IN GENERAL.—This section shall not apply 
for any taxable year beginning after the date on 
which the Secretary (in consultation with the Sec-
retary of Labor) certifies that the amount of credit 
determined under this section has reached an 
amount equal to $5,000,000,000. 
‘‘(2) TRACKING AND REPORTING.— 
‘‘(A) SECRETARY OF TREASURY.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall for purposes of paragraph (1) mon-
itor and regularly calculate the amount of 
credit determined under this section and 
publicly certify when the limitation under 
paragraph (1) has been reached. 
‘‘(ii) ANNUAL REPORTING.—The Sec-
retary shall not later than March 31, 
2027, and annually thereafter, publish an 
report that details the total amount of 
credits determined under this section for 
taxable years ending in the preceding cal-
endar year, the amount of any under-allo-
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cated credits identified under paragraph 
(4)(A), the take-up rate of certificates 
issued under this section for the preceding 
calendar year, and the total number of cer-
tificates issued under this section for the 
preceding calendar year. 
‘‘(iii) TAKE-UP RATE.—For purposes 
of clause (ii), the term ‘take-up rate’ 
means the percentage of apprenticeship tax 
credit eligibility certificates issued under 
subsection (e) that result in credits deter-
mined under this section, as determined by 
the Secretary. 
‘‘(B) SECRETARY OF LABOR.— 
‘‘(i) IN GENERAL.—The Secretary of 
Labor, in consultation with the Secretary, 
shall annually review the determinations 
made by the Secretary under subparagraph 
(A) and estimate the extent to which credit 
limitation under paragraph (1) remains 
available. 
‘‘(ii) COMMENSURATE
ADJUSTMENT 
OF
QUALIFYING
INFRASTRUCTURE-RE-
LATED OCCUPATIONS.—Based on such re-
view and estimates, the Secretary of Labor 
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may adjust the list of qualifying infrastruc-
ture-related occupations identified under 
section subsection (e) to limit the issuance 
of additional apprenticeship tax credit eli-
gibility certificates if necessary to ensure, 
to the extent practicable, the limitation 
under paragraph (1) is not exceeded before 
December 31, 2035. 
‘‘(iii) ANNUAL REPORTING.—For tax-
able years beginning after December 31, 
2026, any adjustments to the list of quali-
fying infrastructure-related occupations for 
a year shall be published by the Secretary 
not later than September 30 of the pre-
ceding year. 
‘‘(3) LIMITATION
OR
PRIORITIZATION
WHEN 
REMAINING BALANCE IS LOW.— 
‘‘(A) IN GENERAL.—When the remaining 
balance of credits allowable under this section, 
as determined by the Secretary under para-
graph (2)(A), is less than $1,000,000,000, the 
Secretary, in consultation with the Secretary of 
Labor, may prescribe any of the following: 
‘‘(i) Limiting the qualifying infra-
structure-related 
occupations 
identified 
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under subsection (d)(1)(B) for which ap-
prenticeship tax credit eligibility certifi-
cates may be issued. 
‘‘(ii) Directing the issuance of such 
certificates to focus on apprenticeship em-
ployees who are recently separated vet-
erans, members of the National Guard or 
Reserve Component of the Armed Forces, 
or military spouses. 
‘‘(B) DETERMINATION
OF
CERTIFICATES 
ISSUED.— 
‘‘(i) USE OF TAKE-UP RATE.—If the 
annual report under paragraph (2)(A)(ii) 
has been issued for the preceding calendar 
years, the number of certificates issued 
under this paragraph shall be determined 
by adjusting the proportional allocation 
under paragraph (4)(C)(ii)(I) based on the 
take-up rate reported under paragraph 
(2)(A)(ii) for such year, to ensure that the 
estimated credit amount resulting from 
such issuance does not exceed the remain-
ing balance under this section. 
‘‘(4) REALLOCATION
OF
UNDER-ALLOCATED 
CREDITS.— 
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‘‘(A) IN
GENERAL.—The Secretary may 
identify, as part of the annual report required 
under paragraph (2)(A), any under-allocated 
portion of any apprenticeship infrastructure tax 
credits or other ‘labor related’ tax credits for a 
prior taxable year. 
‘‘(B) UNDER-ALLOCATED
CREDITS.—For 
purposes of this paragraph, the term ‘under-al-
located credits’ means the difference between 
the estimated credit amounts associated with 
credits determined under this section for the 
preceding calendar year (as reported under 
paragraph (2)(B)) and the actual amount of 
credits claimed by any taxable entity (as re-
ported under paragraph (2)(A)), to the extent 
such difference reflects credits that remain 
available within the volume cap under para-
graph (1). 
‘‘(C) ADDITIONAL
ALLOCATION
BY
SEC-
RETARY OF LABOR.— 
‘‘(i) IN GENERAL.—Upon notification 
from the Secretary of under-allocated cred-
its identified under subparagraph (A), the 
Secretary of Labor may provide for addi-
tional allocation of such credits by issuing 
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additional apprenticeship tax credit eligi-
bility certificates for the succeeding cal-
endar year, subject to the limitations of 
clause (ii). 
‘‘(ii) LIMITATIONS.—The limitations 
of this clause are as follows: 
‘‘(I) IN GENERAL.—If the annual 
report under paragraph (2)(A)(ii) has 
been issued for the preceding calendar 
year, the number of certificates issued 
under this paragraph shall be equal to 
the total number of certificates issued 
in the preceding calendar year, as re-
ported under paragraph (2)(A)(ii), ad-
justed by the take-up rate for such 
year, to ensure that the estimated 
credit amount resulting from such 
issuance does not exceed the remain-
ing balance under this section. 
‘‘(II) NO
ANNUAL
REPORT.—If 
the annual report under paragraph 
(2)(A)(ii) has not been issued for the 
preceding calendar year, the number 
of certificates issued under this para-
graph shall be equal to the total num-
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ber of certificates issued in the pre-
ceding calendar year increased by 30 
percent. 
‘‘(III) 
LIMITATION.—The 
issuance 
of 
additional 
certificates 
under this paragraph shall not cause 
the aggregate volume cap under para-
graph (1) to be exceeded. 
‘‘(D) 
REPORTING.—The 
Secretary 
of 
Labor shall include in the annual report re-
quired under paragraph (2)(B) a summary of 
any additional allocations made under this 
paragraph, including the number of additional 
certificates issued, the estimated amount of 
credits associated with such certificates, the ac-
tual amount of credits determined under this 
section for the preceding calendar year (as re-
ported by the Secretary under paragraph 
(2)(A)), and the occupations targeted by the 
additional allocations. 
‘‘(g) REGULATIONS.—The Secretary shall prescribe 
such rules as may be necessary or appropriate to carry 
out the purposes of this section, including guidance for 
verifying the status of— 
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‘‘(1) individuals as recently separated veterans, 
Members of the National Guard or Reserve Compo-
nent of the Armed Forces, or military spouses, 
‘‘(2) qualified registered apprenticeship pro-
grams, 
‘‘(3) apprenticeship employers and apprentice-
ship employees, and 
‘‘(4) apprenticeship employees, including that 
such employees are reported via Form W–2, not a 
1099 contractor, based on Internal Revenue Service 
standards.’’. 
(b) DENIAL OF DOUBLE BENEFIT.—Section 280C(a) 
of such Code is amended by inserting ‘‘45BB(a),’’ after 
‘‘45S(a),’’. 
(c) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (40), by striking the 
period at the end of paragraph (41) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(42) the apprenticeship tax credit determined 
under section 45BB(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. 45BB. Apprenticeship tax credit for employers.’’. 
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(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2025. 
Æ 
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