What This Bill Does
This bill creates a new tax credit (a reduction in taxes owed) that employers can receive for hiring employees in apprenticeship programs. Employers would get $1,500 for each apprentice they hire above a certain level. The bill also requires the federal government to reduce printing costs and provide information about those costs on printed documents.
Who It Affects
Employers who hire apprentices in registered apprenticeship programs. Federal agencies and departments that print and distribute documents to the public. Apprentices enrolled in qualified apprenticeship programs.
Key Provisions
Employers receive a tax credit of $1,500 for each apprentice employee who exceeds their "applicable apprenticeship level" during a tax year (Sec. 2(a)).
The tax credit applies only to employees in officially recognized apprenticeable occupations as determined by the Office of Apprenticeship of the Employment and Training Administration of the Department of Labor (Sec. 2(c)(1)(A)).
Employers cannot claim the credit for the same apprentice for more than 2 tax years (Sec. 2(b)).
Employers in industries with a specific North American Industry Classification System code beginning with 23 cannot claim the credit unless they hire pre-apprenticeship graduates who completed preparation programs and the employer sponsors or participates in an apprenticeship program (Sec. 2(e)).
The federal government must coordinate efforts within 90 days to reduce printing costs and require agencies to list the printing cost, number of copies printed, issuing agency name and the publishing entity on all public documents (Sec. 3).
What Changes
Employers with apprentices in qualified programs will be able to reduce their federal income taxes by $1,500 per apprentice (up to 2 years per apprentice) if they exceed their baseline apprenticeship level. Federal agencies will need to publicly disclose printing costs and copy numbers on all printed documents distributed to the public.
Important Definitions
"Apprenticeship employee" means any employee working in an officially recognized apprenticeable occupation and currently enrolled in an apprenticeship program (Sec. 2(c)(1)).
"Apprenticeship program" means a registered apprenticeship program (Sec. 2(c)(2)).
"Applicable apprenticeship level" means 80 percent of the average number of apprentice employees from the 3 previous tax years, rounded down. For employers new to apprenticeships, this level equals zero (Sec. 2(d)).
"Pre-apprenticeship graduate" means someone who completed a pre-apprenticeship program designed to prepare participants to enter apprenticeship programs (Sec. 2(e)(2)).
Effective Date
The amendments apply to individuals who start apprenticeship programs after the bill becomes law (Sec. 2(e)).
I
118TH CONGRESS
1ST SESSION H. R. 1536
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for employees who participate in qualified apprentice-
ship programs.
IN THE HOUSE OF REPRESENTATIVES
MARCH 10, 2023
Ms. BUDZINSKI (for herself, Mr. CAREY, Mr. KRISHNAMOORTHI, and Ms.
HOYLE of Oregon) introduced the following bill; which was referred to
the Committee on Ways and Means, and in addition to the Committee
on Oversight and Accountability, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To amend the Internal Revenue Code of 1986 to allow em-
ployers a credit against income tax for employees who
participate in qualified apprenticeship programs.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Leveraging and Ener-
4
gizing America’s Apprenticeship Programs Act’’ or the
5
‘‘LEAP Act’’.
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•HR 1536 IH
SEC. 2. CREDIT FOR EMPLOYEES PARTICIPATING IN QUALI-
1
FIED APPRENTICESHIP PROGRAMS.
2
(a) IN GENERAL.—Subpart D of part IV of sub-
3
chapter A of chapter 1 of the Internal Revenue Code of
4
1986 is amended by adding at the end the following new
5
section:
6
‘‘SEC. 45BB. EMPLOYEES PARTICIPATING IN QUALIFIED AP-
7
PRENTICESHIP PROGRAMS.
8
‘‘(a) IN GENERAL.—For purposes of section 38, the
9
apprenticeship credit determined under this section for the
10
taxable year is an amount equal to $1,500 for each of the
11
apprenticeship employees of the employer that exceeds the
12
applicable apprenticeship level (as determined under sub-
13
section (d)) during such taxable year.
14
‘‘(b) LIMITATION ON NUMBER OF YEARS WITH RE-
15
SPECT TO WHICH CREDIT MAY BE TAKEN INTO AC-
16
COUNT.—The apprenticeship credit shall not be allowed
17
for more than 2 taxable years with respect to any appren-
18
ticeship employee.
19
‘‘(c) APPRENTICESHIP EMPLOYEE.—For purposes of
20
this section—
21
‘‘(1) IN GENERAL.—The term ‘apprenticeship
22
employee’ means any employee who is—
23
‘‘(A) employed by the employer in an offi-
24
cially recognized apprenticeable occupation, as
25
determined by the Office of Apprenticeship of
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•HR 1536 IH
the Employment and Training Administration
1
of the Department of Labor, and
2
‘‘(B) currently enrolled in an apprentice-
3
ship program.
4
‘‘(2) APPRENTICESHIP
PROGRAM.—The term
5
‘apprenticeship program’ means a registered appren-
6
ticeship program defined in section 3131(e)(3)(B).
7
‘‘(d) APPLICABLE APPRENTICESHIP LEVEL.—
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‘‘(1) IN GENERAL.—For purposes of this sec-
9
tion, the applicable apprenticeship level shall be
10
equal to the amount equal to 80 percent of the aver-
11
age number of such apprenticeship employees of the
12
employer for the 3 taxable years preceding the tax-
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able year for which the credit is being determined,
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rounded to the next lower whole number.
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‘‘(2) FIRST
YEAR
OF
NEW
APPRENTICESHIP
16
PROGRAMS.—In the case of an employer which did
17
not have any apprenticeship employees during any
18
taxable year in the 3 taxable years preceding the
19
taxable year for which the credit is being deter-
20
mined, the applicable apprenticeship level shall be
21
equal to zero.
22
‘‘(e) EXCLUSION FOR CERTAIN INDUSTRIES.—
23
‘‘(1) IN GENERAL.—No credit may be allowed
24
under this section with respect to an individual em-
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•HR 1536 IH
ployed by an employer in any sector described in the
1
North American Industry Classification System code
2
beginning with 23 unless—
3
‘‘(A) such individual is a pre-apprentice-
4
ship graduate currently enrolled in an appren-
5
ticeship program, and
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‘‘(B) such employer participates in or
7
sponsors an apprenticeship program.
8
‘‘(2) PRE-APPRENTICESHIP
GRADUATE.—For
9
purposes of this subsection, the term ‘pre-appren-
10
ticeship graduate’ means any individual who has
11
completed a pre-apprenticeship program.
12
‘‘(3)
PRE-APPRENTICESHIP
PROGRAM.—For
13
purposes of this subsection, the term ‘pre-appren-
14
ticeship program’ means a program that—
15
‘‘(A) is designed to prepare participants to
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enter an apprenticeship program,
17
‘‘(B) is carried out by a sponsor that has
18
a documented partnership with 1 or more spon-
19
sors of apprenticeship programs, and
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‘‘(C) includes each of the following:
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‘‘(i) Training (including a curriculum
22
for the training) and theoretical education
23
for participants that—
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•HR 1536 IH
‘‘(I) is aligned with industry
1
standards related to an apprenticeship
2
program and reviewed and approved
3
annually by sponsors of the appren-
4
ticeship program within the docu-
5
mented partnership that will prepare
6
participants by teaching the skills and
7
competencies needed to enter 1 or
8
more apprenticeship programs, and
9
‘‘(II) does not displace a paid
10
employee.
11
‘‘(ii) A formal agreement with a spon-
12
sor of an apprenticeship program that will
13
facilitate or expedite entry of pre-appren-
14
ticeship graduates into the apprenticeship
15
program, provided that a place in the ap-
16
prenticeship program is available and that
17
the pre-apprenticeship graduate meets the
18
qualifications of such program.
19
‘‘(f) COORDINATION WITH OTHER CREDITS.—The
20
amount of credit otherwise allowable under sections 45A,
21
51(a), and 1396(a) with respect to any employee shall be
22
reduced by the credit allowed by this section with respect
23
to such employee.
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•HR 1536 IH
‘‘(g) CERTAIN RULES TO APPLY.—Rules similar to
1
the rules of subsections (i)(1) and (k) of section 51 shall
2
apply for purposes of this section.’’.
3
(b) CREDIT MADE PART OF GENERAL BUSINESS
4
CREDIT.—Subsection (b) of section 38 of such Code is
5
amended by striking ‘‘plus’’ at the end of paragraph (40),
6
by striking the period at the end of paragraph (41) and
7
inserting ‘‘, plus’’, and by adding at the end the following
8
new paragraph:
9
‘‘(42) the apprenticeship credit determined
10
under section 45BB(a).’’.
11
(c) DENIAL OF DOUBLE BENEFIT.—Subsection (a)
12
of section 280C of such Code is amended by inserting
13
‘‘45BB(a),’’ after ‘‘45S(a),’’.
14
(d) CLERICAL AMENDMENT.—The table of sections
15
for subpart D of part IV of subchapter A of chapter 1
16
of such Code is amended by adding at the end the fol-
17
lowing new item:
18
‘‘Sec. 45BB. Employees participating in qualified apprenticeship programs.’’.
(e) EFFECTIVE DATE.—The amendments made by
19
this section shall apply to individuals commencing appren-
20
ticeship programs after the date of the enactment of this
21
Act.
22
SEC. 3. LIMITATION ON GOVERNMENT PRINTING COSTS.
23
Not later than 90 days after the date of enactment
24
of this Act, the Director of the Office of Management and
25
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•HR 1536 IH
Budget shall coordinate with the heads of Federal depart-
1
ments and independent agencies to—
2
(1) determine which Government publications
3
could be available on Government websites and no
4
longer printed and to devise a strategy to reduce
5
overall Government printing costs over the 10-year
6
period beginning with fiscal year 2023, except that
7
the Director shall ensure that essential printed docu-
8
ments prepared for social security recipients, Medi-
9
care beneficiaries, and other populations in areas
10
with limited internet access or use continue to re-
11
main available;
12
(2) establish government-wide Federal guide-
13
lines on employee printing; and
14
(3) issue guidelines requiring every department,
15
agency, commission, or office to list at a prominent
16
place near the beginning of each publication distrib-
17
uted to the public and issued or paid for by the Fed-
18
eral Government—
19
(A) the name of the issuing agency, de-
20
partment, commission, or office;
21
(B) the total number of copies of the docu-
22
ment printed;
23
(C) the collective cost of producing and
24
printing all of the copies of the document; and
25
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•HR 1536 IH
(D) the name of the entity publishing the
1
document.
2
Æ
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