‘‘SEC. 45S. ON-THE-JOB TRAINING TAX CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an eligible employer, the on-the-job training 
tax credit determined under this section with respect to 
any eligible employee of the employer is an amount equal 
to the lesser of— 
‘‘(1) 50 percent of the job training program ex-
penditures of the taxpayer with respect to such em-
ployee during the taxable year, or 
‘‘(2) $5,000. 
‘‘(b) ELIGIBLE EMPLOYER.—For purposes of this 
section, the term ‘eligible employer’ means an employer 
which employed an average of not more than 500 full-time 
employees during the taxable year. 
‘‘(c) JOB TRAINING PROGRAM EXPENSES.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘job training pro-
gram expenses’ means amounts paid or incurred by 
the employer for expenses incurred by or on behalf 
of an eligible employee for participation in a quali-
fied training program. 
‘‘(2) QUALIFIED
TRAINING
PROGRAM.—For 
purposes of this subsection, the term ‘qualified train-
ing program’ means any of the following written 
plans of study and training: 
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‘‘(A) An apprenticeship program registered 
and certified with the Secretary of Labor under 
section 1 of the National Apprenticeship Act 
(29 U.S.C. 50). 
‘‘(B) A program licensed, registered, or 
certified by the workforce investment board or 
apprenticeship agency or council of a State or 
administered in compliance with apprenticeship 
laws of a State. 
‘‘(C) A program conducted by a vocational 
or technical education school, community col-
lege, industrial or trade training organization, 
or labor organization. 
‘‘(D) A program which conforms to ap-
prentice training programs developed or admin-
istered by an employer trade group or com-
mittee. 
‘‘(E) An industry sponsored or adminis-
tered program which is clearly identified and 
commonly recognized. 
‘‘(d) ELIGIBLE EMPLOYEE.—For purposes of this 
section, the term ‘eligible employee’ means any employee 
of the employer, who while participating in the job skills 
training program is employed on average at least 40 hours 
of service per week. 
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‘‘(e) RECAPTURE OF CREDIT FOR EMPLOYEE NOT 
PERFORMING MINIMUM SERVICE.— 
‘‘(1) IN
GENERAL.—In the case of any em-
ployee with respect to whom a credit is allowed 
under this section and whose employment is termi-
nated by the employer (other than by reason of such 
employee’s gross misconduct) before the end of the 
2-year period beginning on the first day of the em-
ployee’s study or training with respect to which a 
credit is allowed under this section, the tax of the 
taxpayer under this chapter for the taxable year dur-
ing which such termination occurs shall be increased 
by an amount equal to— 
‘‘(A) the aggregate decrease in the credits 
allowed under section 38 for all prior taxable 
years which would have resulted if the job 
training program expenses with respect to such 
employee had been zero, multiplied by 
‘‘(B) the inclusion ratio. 
‘‘(2) INCLUSION RATIO.—For purposes of this 
subsection, the inclusion ratio is the ratio which— 
‘‘(A) an amount equal to the difference 
of— 
‘‘(i) the number of days in the 2-year 
period, over 
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‘‘(ii) the number of days such em-
ployee was employed by the employer dur-
ing such 2-year period, bears to 
‘‘(B) the number of days in the 2-year pe-
riod. 
‘‘(f) CONTROLLED GROUPS.—For purposes of this 
section, all persons treated as a single employer under sub-
section (b), (c), (m), or (o) of section 414 shall be treated 
as a single employer. 
‘‘(g) TERMINATION.—The section shall not apply 
amounts paid or incurred during taxable years beginning 
after December 31, 2017.’’. 
(b) CREDIT TO BE 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 on-the-job training tax credit deter-
mined under section 45S(a).’’. 
(c) 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. On-the-job training tax credit.’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
Æ 
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