Apprenticeships for Small Businesses Act of 2025

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4949 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 4949

 To amend the Internal Revenue Code of 1986 to establish a credit for 
    certain employers of qualifying career and technical education 
                               students.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 12, 2025

  Mr. Harder of California (for himself and Mrs. Kiggans of Virginia) 
 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 establish a credit for 
    certain employers of qualifying career and technical education 
                               students.

    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 ``Apprenticeships for Small Businesses 
Act of 2025''.

SEC. 2. CAREER AND TECHNICAL EDUCATION CREDIT.

    (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. 45U. CAREER AND TECHNICAL EDUCATION CREDIT.

    ``(a) In General.--For the purposes of section 38, in the case of a 
small business concern (as such term is defined under section 3 of the 
Small Business Act), the career and technical education credit 
determined under this section for any taxable year is an amount equal 
to the sum of--
            ``(1) the amount equal to 50 percent of the qualified wages 
        paid by the taxpayer during the taxable year, plus
            ``(2) the amount equal to the qualified workmen's 
        compensation expenses of the taxpayer for the taxable year.
    ``(b) Limitation.--
            ``(1) In general.--The amount of credit determined under 
        subsection (a) shall not exceed $10,000 for any taxpayer in any 
        taxable year.
            ``(2) Related party.--For purposes of paragraph (1), 
        taxpayers which are treated as a single employer under 
        subsection (a) or (b) of section 52 or subsection (m) or (o) of 
        section 414 shall be treated as a single taxpayer.
    ``(c) Qualified Employee.--For purposes of this section, the term 
`qualified employee' means, with respect to an employer, an employee 
who--
            ``(1) has not attained the age of 21 as of the last day of 
        the taxable year, or
            ``(2) is--
                    ``(A) participating in a registered apprenticeship 
                program, as defined in section 3131(e)(3)(B), or
                    ``(B) enrolled, during such taxable year, in--
                            ``(i) any course of study relating to the 
                        trade or business of such employer at a 
                        community college which complies with any 
                        applicable State or local licensing 
                        requirements necessary to issue associate's 
                        degrees, or
                            ``(ii) any career training or vocational 
                        program (including career and technical 
                        education programs of a high school) relating 
                        to the trade or business of the employer.
    ``(d) Qualified Workmen's Compensation Expenses.--For purposes of 
this section, the term `qualified workmen's compensation expenses' 
means amounts paid or incurred by the taxpayer during the taxable year 
for premiums relating to an insurance policy (or the appropriate 
portion of such policy) which insures the taxpayer against claims under 
a workmen's compensation law of the United States, any State, the 
District of Columbia, or the Commonwealth of Puerto Rico in relation to 
the employment of a qualified employee.''.
    (b) Credit To Be Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (32), 
by striking the period at the end of paragraph (33) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(34) in the case of small business concern (as such term 
        is defined under section 3 of the Small Business Act), the 
        career and technical education credit determined under section 
        45U(a).''.
    (c) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45T the following new 
item:

``Sec. 45U. Career and technical education credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply amounts paid or incurred in taxable years beginning after 
December 31, 2025.
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