LEAP Act

Bill Number

H.R. 1662

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Taxation

Status

Introduced

Latest Action

2025-02-27: Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-01-28T09:05:37Z

AI-Generated Summary

Purpose of the Legislation

The Leveraging and Energizing America's Apprenticeship Programs Act (LEAP Act), H.R. 1662, aims to encourage employers to hire and train apprentices by offering tax incentives. It also seeks to cut federal government printing expenses by promoting digital alternatives and increasing transparency in printing practices.

Key Provisions

• Tax Credit for Apprenticeship Employees:
• Employers can claim a $1,500 tax credit per qualifying apprenticeship employee for up to two taxable years.
• An "apprenticeship employee" is someone working in an officially recognized trade (as defined by the Department of Labor's Office of Apprenticeship) and enrolled in a registered apprenticeship program (a structured training program combining on-the-job work and classroom instruction).
• The credit applies only to the number of apprentices exceeding 80% of the employer's average apprentice count over the prior three years (or zero for new programs).
• Special rules for the construction industry (NAICS code 23): Credit is limited to pre-apprenticeship graduates (those who completed preparatory training aligned with apprenticeships) unless the employer sponsors or participates in an apprenticeship program. Pre-apprenticeship programs must include industry-standard training, partnerships with apprenticeship sponsors, and agreements to ease entry into apprenticeships without displacing paid workers.
• The credit reduces amounts available under other tax credits (e.g., for Indian employment or work opportunity) to avoid double benefits.
• Applies to apprentices starting programs after the bill's enactment.

• Limitation on Government Printing Costs:
• Within 90 days of enactment, the Office of Management and Budget (OMB) Director must work with federal agencies to identify publications that can shift to online-only formats, create a 10-year plan to reduce printing costs starting in fiscal year 2026, and ensure printed materials remain available for vulnerable groups (e.g., Social Security recipients, Medicare beneficiaries, or those in low-internet areas).
• Establishes government-wide guidelines on employee printing practices.
• Requires all federal publications to prominently disclose the issuing agency, print run size, total production and printing costs, and publishing entity.

Significant Changes to Existing Law

• Adds a new section (45BB) to the Internal Revenue Code (IRC) for the apprenticeship credit, integrating it into the general business credit framework (section 38) and preventing double-dipping with related credits (via section 280C amendments).
• No prior IRC provision specifically offers a flat $1,500 credit per apprentice exceeding baseline levels; this builds on but expands existing incentives like the work opportunity credit.
• Introduces printing transparency and reduction mandates not previously required in federal guidelines, though it aligns with broader efficiency efforts under laws like the Paperwork Reduction Act.

Potential Impacts

• On Employers and Workforce: Could increase apprenticeship participation by lowering hiring costs, potentially boosting skilled labor in trades like construction, manufacturing, and others. May particularly benefit small or new employers starting programs.
• On Citizens: Apprentices gain better access to paid training and career pathways, especially pre-apprentices from underserved groups. Reduced printing could save taxpayer money (estimated federal printing costs exceed $1 billion annually) but might limit access for those without internet.
• On Government Agencies: IRS handles new credit claims, increasing administrative workload short-term. OMB and agencies implement printing cuts, potentially saving funds for other priorities while promoting digital government services.
• On International Relations: Minimal direct impact, though enhanced U.S. workforce skills could indirectly strengthen economic competitiveness.

Main Stakeholders Affected

• Employers: Primary beneficiaries of the tax credit, especially in labor-short industries; construction firms face stricter rules to ensure program involvement.
• Apprentices and Job Seekers: Including pre-apprentices, who gain easier entry to training; underrepresented groups (e.g., youth, minorities) may see more opportunities.
• Federal Government: IRS (tax administration), Department of Labor (program oversight), OMB (printing coordination), and agencies producing publications.
• Taxpayers: Indirectly affected through reduced revenue from credits (estimated cost: potentially $100–500 million annually if widely adopted) offset by printing savings.

Notable Legal, Constitutional, or Political Implications

• Legal: The credit's coordination with existing IRC sections ensures compliance with tax code structure, avoiding unconstitutional favoritism (e.g., under equal protection). Printing provisions may face challenges if digital shifts infringe on access rights for disabled or rural populations, but exceptions mitigate this.
• Constitutional: Aligns with Congress's taxing and spending powers (Article I); no apparent free speech or due process issues.
• Political: Supports bipartisan workforce development goals (introduced by Democrats with Republican co-sponsors), potentially advancing infrastructure and skills agendas. Could influence budget debates by balancing tax incentives with cost-saving measures, though credit uptake depends on economic conditions. Referred to Ways and Means and Oversight Committees, signaling focus on tax policy and government efficiency.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Budzinski, Nikki [D-IL-13]

Cosponsors (9)

Rep. Carey, Mike [R-OH-15], Rep. Hoyle, Val T. [D-OR-4], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Malliotakis, Nicole [R-NY-11], Rep. Sorensen, Eric [D-IL-17], Rep. Riley, Josh [D-NY-19], Rep. Bonamici, Suzanne [D-OR-1], Rep. DeSaulnier, Mark [D-CA-10], Rep. Rivas, Luz M. [D-CA-29]

Recent Actions

• 2025-02-27: Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-27: Referred to the Committee on Ways and Means, and in addition to the Committee on Oversight and Government Reform, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2025-02-27: Introduced in House
• 2025-02-27: Introduced in House

Bill Versions

• Leveraging and Energizing America’s Apprenticeship Programs Act — issued 2025-02-27 — PDF (8 pages)