How HR 4238 changes current law

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill creates a new tax credit for employers who hire apprentices as part of qualified apprenticeship programs.

• Section 38 of the Internal Revenue Code of 1986

  plus → , plus

  This change allows the newly created apprenticeship credit to be included in the general business credit for employers.

• Section 38 of the Internal Revenue Code of 1986

  the period at the end of paragraph (32) → , plus

  This change facilitates the inclusion of the apprenticeship credit in the list of credits under section 38.

• Section 280C of the Internal Revenue Code of 1986

  45T(a),

  This change ensures that the apprenticeship credit cannot be claimed in addition to other specified credits.

• Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986

  SEC. 45T. EMPLOYEES PARTICIPATING IN QUALIFIED APPRENTICESHIP PROGRAMS.

  This new section establishes the framework for a tax credit for employers hiring apprentices.

• Section 45T of the Internal Revenue Code of 1986

  Applicable Credit Amount.--For purposes of subsection (a), the applicable credit amount for each apprentice for each taxable year is equal to--

  This defines the applicable credit amount, allowing employers to receive a specific dollar amount based on the age of the apprentice.

• Section 45T of the Internal Revenue Code of 1986

  Applicable Apprenticeship Level.--For purposes of this section, the applicable apprenticeship level shall be equal to--

  This establishes guidelines for determining the number of apprentices an employer has, which influences the credit calculation.

• Section 45T of the Internal Revenue Code of 1986

  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.

  This ensures the new apprenticeship credit coordinates properly with existing tax credits.

• Section 45T of the Internal Revenue Code of 1986

  Denial of Double Benefit.--Rules similar to the rules of subsections (i)(1) and (k) of section 51 shall apply for purposes of this section.

  This provides a mechanism to prevent employers from claiming multiple benefits for the same apprenticeship.

• Section 45T of the Internal Revenue Code of 1986

  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 apprentice.

  This limits the duration over which employers can claim the apprenticeship credit for any single apprentice.

• Table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986

  Sec. 45T. Employees participating in qualified apprenticeship programs.

  This adds a new entry to the table of sections, providing a reference for the newly created section concerning apprenticeship credits.