SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Leveraging and Energizing America's 
Apprenticeship Programs Act'' or the ``LEAP Act''.

SEC. 2. CREDIT FOR 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 is amended by adding at the end 
the following new section:

``SEC. 45S. 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 an amount 
equal to the sum of the applicable credit amounts (as determined under 
subsection (b)) for each of the apprenticeship employees of the 
employer that exceeds the applicable apprenticeship level (as 
determined under subsection (e)) during such taxable year.
    ``(b) Applicable Credit Amount.--For purposes of subsection (a), 
the applicable credit amount for each apprenticeship employee for each 
taxable year is equal to--
            ``(1) in the case of an apprenticeship employee who has not 
        attained 25 years of age at the close of the taxable year, 
        $1,500, or
            ``(2) in the case of an apprenticeship employee who has 
        attained 25 years of age at the close of the taxable year, 
        $1,000.
    ``(c) Limitation on Number of Years Which Credit May Be Taken Into 
Account.--The apprenticeship credit shall not be allowed for more than 
2 taxable years with respect to any apprenticeship employee.
    ``(d) Apprenticeship Employee.--For purposes of this section--
            ``(1) In general.--The term `apprenticeship employee' means 
        any employee who is--
                    ``(A) a party to an apprenticeship agreement 
                registered with--
                            ``(i) the Office of Apprenticeship of the 
                        Employment and Training Administration of the 
                        Department of Labor, or
                            ``(ii) a recognized State apprenticeship 
                        agency, and
                    ``(B) employed by the employer in the occupation 
                identified in the apprenticeship agreement described in 
                paragraph (1), whether or not the employer is a party 
                to such agreement.
            ``(2) Minimum completion rate for eligible apprenticeship 
        programs.--An employee shall not be treated as an 
        apprenticeship employee unless such apprenticeship agreement is 
        with an apprenticeship program that, for the two-year period 
        ending on the date of the apprenticeship begins, has a 
        completion rate of at least 50 percent.
    ``(e) Applicable Apprenticeship Level.--
            ``(1) In general.--For purposes of this section, the 
        applicable apprenticeship level shall be equal to--
                    ``(A) in the case of any apprenticeship employees 
                described in subsection (b)(1), the amount equal to 80 
                percent of the average number of such apprenticeship 
                employees of the employer for the 3 taxable years 
                preceding the taxable year for which the credit is 
                being determined, rounded to the next lower whole 
                number, and
                    ``(B) in the case of any apprenticeship employees 
                described in subsection (b)(2), the amount equal to 80 
                percent of the average number of such apprenticeship 
                employees of the employer for the 3 taxable years 
                preceding the taxable year for which the credit is 
                being determined, rounded to the next lower whole 
                number.
            ``(2) First year of new apprenticeship programs.--In the 
        case of an employer which did not have any apprenticeship 
        employees during any taxable year in the 3 taxable years 
        preceding the taxable year for which the credit is being 
        determined, the applicable apprenticeship level shall be equal 
        to zero.
    ``(f) 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.
    ``(g) 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. 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.
Leveraging and Energizing America's Apprenticeship Programs Act or the LEAP Act This bill amends the Internal Revenue Code to allow employers a business-related tax credit of $1,500 for hiring&nbsp;an apprenticeship employee&nbsp;who has not attained age 25&nbsp;at the close of the taxable year or $1,000 for hiring an apprenticeship employee&nbsp;who has attained age 25. The credit is available for no more than&nbsp;two taxable years with respect to any apprenticeship employee.  An "apprenticeship employee" means any employee who is: (1) a party to an apprenticeship agreement registered with the Office of Apprenticeship of the Employment and Training Administration of the Department of Labor or a recognized state apprenticeship agency; and (2) employed by the employer in the occupation identified in the apprenticeship agreement, whether or not the employer is a party to such agreement. 
Leveraging and Energizing America’s Apprenticeship Programs Act