Title: Workforce Development Tax Credit Act of 2017
Policy area: Taxation

Summary:
Workforce Development Tax Credit Act of 2017
This bill amends the Internal Revenue Code to allow a business-related tax credit for: (1) 50% of wages (up to $2,000) paid to an apprenticeship employee during an apprenticeship period, and (2) 40% of wages (up to $6,000) paid to such an employee during a post-apprenticeship period. The bill defines "apprenticeship employee" as any employee employed by an employer pursuant to an apprentice agreement registered with the Office of Apprenticeship of the Employment and Training Administration of the Department of Labor or a recognized state apprenticeship agency.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1190 Introduced in House (IH)]

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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 following bill; 
         which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Workforce Development Tax Credit Act 
of 2017''.

SEC. 2. CREDIT FOR WAGES PAID TO EMPLOYEES PARTICIPATING IN QUALIFIED 
              APPRENTICESHIP PROGRAMS.

    (a) In General.--Subpart D of part IV of subchapter 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 purposes 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 be taken into account under paragraph 
        (1) with respect to any apprenticeship employee for each 
        qualified 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 services in a 
                position which utilizes skills acquired in the 
                qualified training program.
            ``(2) Limitation on wages taken into account.--The amount 
        of wages which may be taken into account under paragraph (1) 
        with respect to 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 regulations, 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 individual completed such program.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Wages.--The term `wages' has the meaning 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 apprentice 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 Apprenticeship of the 
                Employment and Training Administration of the 
                Department of Labor.
            ``(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 semester 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 `training period' 
                means, with respect to an employee, the period--
                            ``(i) beginning on the date that the 
                        employee begins employment with the taxpayer as 
                        an apprentice under a qualified training 
                        program, and
                            ``(ii) ending on the earlier of--
                                    ``(I) the date that such 
                                apprenticeship 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 period--
                    ``(A) beginning on the date that the employee 
                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.''.
    (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 following 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 apprenticeship programs after the date 
of the enactment of this Act.
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