‘‘(ii) the number of taxable years in 
which the qualified apprenticeship program 
or the qualified multi-employer apprentice-
ship program was in existence, whichever 
is less. 
‘‘(3) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion or any other credit shall be allowed under this 
chapter for any amount taken into account in deter-
mining the credit under this section. 
‘‘(4) ELECTION NOT TO CLAIM CREDIT.—This 
section shall not apply to a taxpayer for any taxable 
year if such taxpayer elects to have this section not 
apply for such taxable year. 
‘‘(5) LIMITATION.—The apprenticeship pro-
gram credit under this section shall not be allowed 
for more than 3 taxable years with respect to any 
qualified individual. 
‘‘(b) QUALIFIED INDIVIDUAL.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified individual’ means, with re-
spect to any taxable year, an individual who is an 
apprentice and— 
‘‘(A) is participating in a qualified appren-
ticeship program or a qualified multi-employer 
apprenticeship program with an employer that 
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is subject to the terms of a valid apprenticeship 
agreement (as defined in the Act of August 16, 
1937 (commonly known as the ‘National Ap-
prenticeship Act’; 50 Stat. 664, chapter 663; 29 
U.S.C. 50 et seq.)), 
‘‘(B) has been employed under a qualified 
apprenticeship program or a qualified multi-em-
ployer apprenticeship program for a period of 
not less than 7 months that ends within the 
taxable year, 
‘‘(C) is not a highly compensated employee 
(as defined in section 414(q)), and 
‘‘(D) is not a seasonal worker (as defined 
in section 45R(d)(5)(B)). 
‘‘(2) TRAINING RECEIVED BY MEMBERS OF THE 
ARMED FORCES.—An employer shall consider and 
may accept, in the case of a qualified individual par-
ticipating in a qualified apprenticeship program or a 
qualified multi-employer apprenticeship program, 
any relevant training or instruction received by such 
individual while serving in the Armed Forces of the 
United States, for the purpose of satisfying the ap-
plicable training and instruction requirements under 
such qualified apprenticeship program. 
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‘‘(c) QUALIFIED APPRENTICESHIP PROGRAM
AND 
QUALIFIED MULTI-EMPLOYER APPRENTICESHIP PRO-
GRAM.— 
‘‘(1) QUALIFIED APPRENTICESHIP PROGRAM.— 
‘‘(A) IN GENERAL.—For purposes of this 
section, the term ‘qualified apprenticeship pro-
gram’ means a program registered under the 
National Apprenticeship Act, whether or not 
such program is sponsored by an employer, 
which— 
‘‘(i) provides qualified individuals with 
on-the-job training and instruction for a 
qualified occupation with the employer, 
‘‘(ii) is registered with the Office of 
Apprenticeship of the Employment and 
Training Administration of the Depart-
ment of Labor or a State apprenticeship 
agency recognized by such Office of Ap-
prenticeship, 
‘‘(iii) maintains records relating to the 
qualified individual, in such manner as the 
Secretary, after consultation with the Sec-
retary of Labor, may prescribe, and 
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‘‘(iv) satisfies such other requirements 
as the Secretary, after consultation with 
the Secretary of Labor, may prescribe. 
‘‘(B) QUALIFIED OCCUPATION.—For pur-
poses of subparagraph (A)(i), the term ‘quali-
fied occupation’ means a skilled trade occupa-
tion in a high-demand mechanical, technical, 
healthcare, or technology field (or such other 
occupational field as the Secretary, after con-
sultation with the Secretary of Labor, may pre-
scribe) that satisfies the criteria for an 
apprenticeable occupation under the National 
Apprenticeship Act. 
‘‘(2) QUALIFIED
MULTI-EMPLOYER
APPREN-
TICESHIP PROGRAM.—The term ‘qualified multi-em-
ployer apprenticeship program’ means an apprentice-
ship program described in paragraph (1) in which 
multiple employers are required to contribute and 
that is maintained pursuant to one or more collective 
bargaining agreements between one or more em-
ployee organizations and such employers. 
‘‘(d) APPRENTICESHIP AGREEMENT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘apprenticeship agreement’ means an 
agreement between a qualified individual and an em-
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ployer that satisfies the criteria under the National 
Apprenticeship Act. 
‘‘(2) CREDIT FOR TRAINING RECEIVED UNDER 
APPRENTICESHIP AGREEMENT.—If a qualified indi-
vidual has received training or instruction through a 
qualified apprenticeship program or a qualified 
multi-employer apprenticeship program with an em-
ployer which is subsequently unable to satisfy its ob-
ligations under the apprenticeship agreement, such 
individual may transfer any completed training or 
instruction for purposes of satisfying any applicable 
training and instruction requirements under a sepa-
rate apprenticeship agreement with a different em-
ployer. 
‘‘(e) APPLICATION OF CERTAIN RULES.—For pur-
poses of this section, all persons treated as a single em-
ployer under subsection (a) or (b) of section 52, or sub-
section (m) or (o) of section 414, shall be treated as a 
single person. 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary to carry out the pro-
visions of this section.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of the Internal Revenue Code of 
1986 is amended by striking ‘‘plus’’ at the end of para-
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graph (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 program expenses 
credit determined under section 45S(a).’’. 
(c) 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. Credit for apprenticeship program expenses.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) RULE
FOR
EMPLOYMENT
CREDITS.—Sec-
tion 280C(a) of the Internal Revenue Code of 1986 
is amended by inserting ‘‘45S(a),’’ after ‘‘45P(a),’’. 
(2) EXCLUSION FOR DETERMINATION OF CRED-
IT FOR INCREASING RESEARCH ACTIVITIES.—Clause 
(iii) of section 41(b)(2)(D) of such Code is amended 
by inserting ‘‘the apprenticeship program credit 
under section 45S(a) or’’ after ‘‘in determining’’. 
(e) EVALUATION.—Not later than 3 years after the 
date of the enactment of this Act, and annually thereafter, 
the Comptroller General of the United States shall submit 
a report to the Committees on Finance and Health, Edu-
cation, Labor, and Pensions of the Senate and the Com-
mittees on Ways and Means and Education and the Work-
force of the House of Representatives that contains an 
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SEC. 3. ENCOURAGING MENTORS TO TRAIN THE FUTURE. 
(a) EARLY DISTRIBUTIONS FROM QUALIFIED RE-
TIREMENT PLANS.—Section 72(t)(2) of the Internal Rev-
enue Code of 1986 is amended— 
(1) in subparagraph (A)— 
(A) by striking ‘‘or’’ at the end of clause 
(vii); 
(B) by striking the period at the end of 
clause (viii) and inserting ‘‘, or’’; and 
(C) by adding at the end the following new 
clause: 
‘‘(ix) made to an employee who is 
serving as a mentor.’’; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(H) DISTRIBUTIONS TO MENTORS.—For 
purposes of this paragraph, the term ‘mentor’ 
means an individual who— 
‘‘(i) has attained 55 years of age, 
‘‘(ii) is not separated from their em-
ployment with a company, corporation, or 
institution of higher education, 
‘‘(iii) in accordance with such require-
ments and standards as the Secretary de-
termines to be necessary, has substantially 
reduced their hours of employment with 
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their employer, with the individual to be 
engaged in mentoring activities described 
in clause (iv) for not less than 20 percent 
of the hours of employment after such re-
duction, and 
‘‘(iv) is responsible for the training 
and education of employees or students in 
an area of expertise for which the indi-
vidual has a professional credential, certifi-
cate, or degree.’’. 
(b) DISTRIBUTIONS
DURING
WORKING
RETIRE-
MENT.—Paragraph (36) of section 401(a) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(36) DISTRIBUTIONS
DURING
WORKING
RE-
TIREMENT.— 
‘‘(A) IN GENERAL.—A trust forming part 
of a pension plan shall not be treated as failing 
to constitute a qualified trust under this section 
solely because the plan provides that a distribu-
tion may be made from such trust to an em-
ployee who— 
‘‘(i) has attained age 62 and who is 
not separated from employment at the 
time of such distribution, or 
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‘‘(ii) subject to subparagraph (B), is 
serving as a mentor (as such term is de-
fined in section 72(t)(2)(H)). 
‘‘(B) LIMITATION ON DISTRIBUTIONS TO 
MENTORS.—For 
purposes 
of 
subparagraph 
(A)(ii), the amount of the distribution made to 
an employee who is serving as a mentor shall 
not be greater than the amount equal to the 
product obtained by multiplying— 
‘‘(i) the amount of the distribution 
that would have been payable to the em-
ployee if such employee had separated 
from employment instead of reducing their 
hours of employment with their employer 
and engaging in mentoring activities, in ac-
cordance with clauses (iii) and (iv) of sec-
tion 72(t)(2)(H), by 
‘‘(ii) the percentage equal to the 
quotient obtained by dividing— 
‘‘(I) the sum of— 
‘‘(aa) the number of hours 
per pay period by which the em-
ployee’s hours of employment are 
reduced, and 
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‘‘(bb) the number of hours 
of employment that such em-
ployee is engaging in mentoring 
activities, by 
‘‘(II) the total number of hours 
per pay period worked by the em-
ployee before such reduction in hours 
of employment.’’. 
(c) ERISA.—Subparagraph (A) of section 3(2) of the 
Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1002(2)) is amended by striking the period at the 
end and inserting the following: ‘‘, or solely because such 
distribution is made to an employee who is serving as a 
mentor (as such term is defined in section 72(t)(2)(H) of 
the Internal Revenue Code of 1986).’’. 
(d) APPLICATION.—The amendments made by this 
section shall apply to distributions made in taxable years 
beginning after December 31, 2017. 
Æ 
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