S. 1352Senate115th Congress (2017-2019)In Committee

Apprenticeship and Jobs Training Act of 2017

Introduced June 14, 2017

AI-Generated Summary

Updated April 15, 2026 at 4:22 PM UTC

The Apprenticeship and Jobs Training Act of 2017 creates a federal tax credit for employers who run on‑site apprenticeship programs and adds new rules that let older workers who cut back their hours to serve as mentors take early distributions from qualified retirement plans. The credit is aimed at employers hiring apprentices in high‑demand skilled trades, while the mentor provisions target workers aged 55 or older who continue to work part‑time as mentors.

Key Provisions

  • Employers can claim a credit of up to $5,000 per qualified apprentice each year, based on either the apprentice’s wages or $3 per hour worked, whichever is lower.
  • The credit only applies to apprentices above the employer’s average number of apprentices over the prior three years and can be claimed for a maximum of three years per apprentice.
  • A “qualified individual” must be an apprentice in a registered program, have worked at least seven months in the year, and not be a highly compensated or seasonal employee.
  • Qualified apprenticeship programs must be registered with the Department of Labor’s Office of Apprenticeship and cover skilled trades in high‑demand fields such as mechanical, technical, healthcare, or technology.
  • The new credit is added to the general business credit and the tax code is updated to reference it (Section 45S).
  • The Comptroller General must report every year on how many apprentices complete programs, stay with the employer, and remain in the same occupation.
  • Workers aged 55 or older who reduce their work hours and spend at least 20 % of their time mentoring can receive early withdrawals from qualified retirement plans, with the amount limited to reflect the reduced hours and mentoring time.
  • The mentor distribution rules apply to plans after December 31, 2017 and modify related ERISA and pension‑plan provisions.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S3489-3490)

June 14, 2017

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SenateIntro Referral

Introduced in Senate

June 14, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S3489-3490)

June 14, 2017

Floor Debate

22 members

What members said about S. 1352 on the floor

13 Republicans8 Democrats1 Independent
Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Jun 14, 2017

Mr. President, let me return the compliment to Senator Corker. Senator Corker announced in his opening remarks about the bipartisan vote in our committee on the Iran sanctions bill. In the last…

Angus S. King Jr.
Sen. Angus S. King Jr.I-ME · Jun 14, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I was in Maine over the weekend, and people said: How do you feel about healthcare? What do you…

Ron Wyden
Sen. Ron WydenD-OR · Jun 14, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I have some remarks to make with respect to healthcare that I will offer in a moment. First, I…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · Jun 14, 2017

Madam President, I understand Senator McCain has come to the floor. I will yield to him as the chairman of the Armed Services Committee. Madam President, I appreciate my colleague's sense of humor.…

Roy Blunt
Sen. Roy BluntR-MO · Jun 14, 2017

Madam President, I thank my colleague for yielding. When Senator Coons and I came to the Senate about 6 years ago, it was about the time we formed the Law Enforcement Caucus. Over that 6 years, we…

Show 8 more
John Barrasso
Sen. John BarrassoR-WY · Jun 14, 2017

Mr. President, Republicans continue to come to the floor to talk about the urgent need that we have to reform America's healthcare system. The reason we continue to do this is because the pain of…

Dan Sullivan
Sen. Dan SullivanR-AK · Jun 14, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, we are on the Senate floor today, yesterday, and tomorrow, and we will be continuing the debate…

John Cornyn
Sen. John CornynR-TX · Jun 14, 2017

Mr. President, let me join my friend, the senior Senator from Utah and President pro tempore of the Senate, in his remarks about the U.S. Capitol Police. All of us who work on Capitol Hill, all of…

James Lankford
Sen. James LankfordR-OK · Jun 14, 2017

Madam President, there are some days that are noisy in DC and in the Nation. It seems as if the disagreements and the discourse have paused for just a moment, and we remember again that we are all…

Maria Cantwell
Sen. Maria CantwellD-WA · Jun 14, 2017

Mr. President, I come to the floor this afternoon with my colleague from Maine to talk about an important issue, as well, something we had long planned to introduce today and did so this morning--the…

Maria Cantwell
Sen. Maria CantwellD-WA · Jun 14, 2017

Mr. President, I come to the floor this afternoon with my colleague from Maine to talk about an important issue, as well, something we had long planned to introduce today and did so this morning--the…

John McCain
Sen. John McCainR-AZ · Jun 14, 2017

Madam President, I rise in support of the Countering Russian Aggression and Cyber Attacks Act, an amendment to the Iran sanctions bill currently under consideration. In just the last 3 years under…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Jun 14, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I rise to express my deepest sympathy for the victims of this morning's shooting, including for…

Show 11 more
Jeanne Shaheen
Sen. Jeanne ShaheenD-NH · Jun 14, 2017

Mr. President, I am here this afternoon to speak about the amendment to address sanctions on Russia, but I want to preface my remarks by saying, like all of us here in the Capitol today, that my…

Bob Corker
Sen. Bob CorkerR-TN · Jun 14, 2017

Mr. President, I rise today to speak about the Countering Iran's Destabilizing Activities Act of 2017, which passed the Senate Foreign Relations Committee last month by a vote of 18 to 3. I would…

Tom Cotton
Sen. Tom CottonR-AR · Jun 14, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I want to add to the voice of so many Senators today who expressed their prayers and concerns…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Jun 14, 2017

Mr. President, the right to vote is among the most sacred rights guaranteed by our Constitution. It forms the foundation for our democracy and inspires countless people across the world still…

John Kennedy
Sen. John KennedyR-LA · Jun 14, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, Congressman Steve Scalise; Special Agent Crystal Griner; Special Agent David Bailey; Zack Barth,…

Charles E. Schumer
Sen. Charles E. SchumerD-NY · Jun 14, 2017

Mr. President, I ask unanimous consent that the Senator from Ohio speak next for 2 minutes, the Senator from Idaho speak after that for 5, and I will conclude with 5 minutes. The vote will be held…

Tim Scott
Sen. Tim ScottR-SC · Jun 14, 2017

Mr. President, today we are shaken and encouraged. My prayers remain with my friend Steve Scalise and his family; as well as with Zach Barth, the congressional staffer; Matt Mika, who was…

Mike Crapo
Sen. Mike CrapoR-ID · Jun 14, 2017

Mr. President. I rise to speak on behalf of the Crapo- Brown-Corker-Cardin Countering Russian Aggression and Cyber Attacks Act of 2017. This is filed as amendment No. 232 to the pending Iran…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Jun 14, 2017

Mr. President, I rise today to speak in support of the Apprenticeship and Jobs Training Act, which Senator Cantwell and I are reintroducing today. Few issues are as important to the American people…

Susan M. Collins
Sen. Susan M. CollinsR-ME · Jun 14, 2017

Mr. President, I rise today to speak in support of the Apprenticeship and Jobs Training Act, which Senator Cantwell and I are reintroducing today. Few issues are as important to the American people…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jun 14, 2017

I announce that the Senator from Maryland (Mr. Van Hollen) is necessarily absent. Mr. President, it has been more than 6 months since a major foreign adversary undertook a cyber act of war against…

Bill Text

Latest available legislative text

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Introduced in SenateIssued June 14, 2017

II

115th CONGRESS

1st Session

S. 1352

IN THE SENATE OF THE UNITED STATES

June 14, 2017

Ms. Cantwell (for herself, Ms. Collins, and Ms. Klobuchar) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To establish a tax credit for on-site apprenticeship programs, and for other purposes.

1.

Short title

This Act may be cited as the Apprenticeship and Jobs Training Act of 2017.

2.

Tax Credit for Apprenticeship Programs

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

45S.

Credit for apprenticeship program expenses

(a)

Tax Credit

(1)

In general

For purposes of section 38, in the case of an employer, the apprenticeship program credit determined under this section for any taxable year is an amount equal to—

(A)

with respect to each qualified individual in a qualified apprenticeship program, the lesser of—

(i)

the amount of any wages (as defined in section 51(c)(1)) paid or incurred by the employer with respect to such qualified individual during the taxable year, or

(ii)

$5,000, and

(B)

with respect to each qualified individual in a qualified multi-employer apprenticeship program, the lesser of—

(i)

an amount equal to the product of—

(I)

the total number of hours of work performed by such qualified individual for such employer during such taxable year, multiplied by

(II)

$3, or

(ii)

$5,000.

(2)

Established apprenticeship programs

(A)

In general

The apprenticeship program credit determined under this section for the taxable year shall only be applicable to the number of qualified individuals employed by the employer through a qualified apprenticeship program or a qualified multi-employer apprenticeship program which are in excess of the apprenticeship participation average for such employer (as determined under subparagraph (B)).

(B)

Apprenticeship participation average

For purposes of subparagraph (A), the apprenticeship participation average shall be equal to the average of the total number of qualified individuals employed by the employer through a qualified apprenticeship program or qualified multi-employer apprenticeship program for—

(i)

the 3 preceding taxable years, or

(ii)

the number of taxable years in which the qualified apprenticeship program or the qualified multi-employer apprenticeship program was in existence, whichever is less.

(3)

Denial of double benefit

No deduction or any other credit shall be allowed under this chapter for any amount taken into account in determining 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 program 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 section, the term qualified individual means, with respect to any taxable year, an individual who is an apprentice and—

(A)

is participating in a qualified apprenticeship program or a qualified multi-employer apprenticeship program with an employer that is subject to the terms of a valid apprenticeship agreement (as defined in 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.)),

(B)

has been employed under a qualified apprenticeship program or a qualified multi-employer 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 participating 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 applicable training and instruction requirements under such qualified apprenticeship program.

(c)

Qualified apprenticeship program and qualified multi-Employer apprenticeship program

(1)

Qualified apprenticeship program

(A)

In general

For purposes of this section, the term qualified apprenticeship program 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 Department of Labor or a State apprenticeship agency recognized by such Office of Apprenticeship,

(iii)

maintains records relating to the qualified individual, in such manner as the Secretary, after consultation with the Secretary of Labor, may prescribe, and

(iv)

satisfies such other requirements as the Secretary, after consultation with the Secretary of Labor, may prescribe.

(B)

Qualified occupation

For purposes of subparagraph (A)(i), the term qualified occupation means a skilled trade occupation in a high-demand mechanical, technical, healthcare, or technology field (or such other occupational field as the Secretary, after consultation with the Secretary of Labor, may prescribe) that satisfies the criteria for an apprenticeable occupation under the National Apprenticeship Act.

(2)

Qualified multi-employer apprenticeship program

The term qualified multi-employer apprenticeship program means an apprenticeship 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 employee organizations and such employers.

(d)

Apprenticeship agreement

(1)

In general

For purposes of this section, the term apprenticeship agreement means an agreement between a qualified individual and an employer that satisfies the criteria under the National Apprenticeship Act.

(2)

Credit for training received under apprenticeship agreement

If a qualified individual has received training or instruction through a qualified apprenticeship program or a qualified multi-employer apprenticeship program with an employer which is subsequently unable to satisfy its obligations 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 separate apprenticeship agreement with a different employer.

(e)

Application of certain rules

For purposes of this section, all persons treated as a single employer under subsection (a) or (b) of section 52, or subsections (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 provisions 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 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 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 adding at the end the following new item:

Sec. 45S. Credit for apprenticeship program expenses.

.

(d)

Conforming amendments

(1)

Rule for employment credits

Section 280C(a) of the Internal Revenue Code of 1986 is amended by inserting 45S(a), after 45P(a),.

(2)

Exclusion for determination of credit 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, Education, Labor, and Pensions of the Senate and the Committees on Ways and Means and Education and the Workforce of the House of Representatives that contains an evaluation of the activities authorized under this Act, including—

(1)

the extent to which qualified individuals completed qualified apprenticeship programs and qualified multi-employer apprenticeship programs;

(2)

whether qualified individuals remained employed by an employer that received an apprenticeship program credit under section 45S of the Internal Revenue Code of 1986 and the length of such employment following expiration of the apprenticeship period;

(3)

whether qualified individuals who completed a qualified apprenticeship program or a qualified multi-employer apprenticeship program remained employed in the same occupation or field; and

(4)

recommendations for legislative and administrative actions to improve the effectiveness of the apprenticeship program credit under section 45S of the Internal Revenue Code of 1986.

(f)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2017.

3.

Encouraging mentors to train the future

(a)

Early distributions from qualified retirement plans

Section 72(t)(2) of the Internal Revenue 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 subparagraph:

(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 employment with a company, corporation, or institution of higher education,

(iii)

in accordance with such requirements and standards as the Secretary determines to be necessary, has substantially reduced their hours of employment with 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 reduction, and

(iv)

is responsible for the training and education of employees or students in an area of expertise for which the individual has a professional credential, certificate, or degree.

.

(b)

Distributions during working retirement

Paragraph (36) of section 401(a) of the Internal Revenue Code of 1986 is amended to read as follows:

(36)

Distributions during working retirement

(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 distribution may be made from such trust to an employee who—

(i)

has attained age 62 and who is not separated from employment at the time of such distribution, or

(ii)

subject to subparagraph (B), is serving as a mentor (as such term is defined 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 employee if such employee had separated from employment instead of reducing their hours of employment with their employer and engaging in mentoring activities, in accordance with clauses (iii) and (iv) of section 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 employee's hours of employment are reduced, and

(bb)

the number of hours of employment that such employee is engaging in mentoring activities, by

(II)

the total number of hours per pay period worked by the employee 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.