H.R.1662 - Leveraging and Energizing America’s Apprenticeship Programs Act; LEAP Act (119th Congress)
Summary
H.R.1662, the Leveraging and Energizing America’s Apprenticeship Programs Act (LEAP Act), proposes an amendment to the Internal Revenue Code of 1986. It introduces a tax credit for employers who have employees participating in qualified apprenticeship programs. The bill aims to incentivize employer-sponsored apprenticeship programs by offering a $1,500 tax credit for each apprentice exceeding a defined baseline, capped at two years per apprentice.
Expected Effects
If enacted, the LEAP Act would likely increase the number of registered apprenticeship programs and the number of individuals participating in them. This could lead to a more skilled workforce and potentially reduce unemployment in sectors utilizing apprenticeships. Additionally, the bill includes provisions to limit government printing costs, aiming for fiscal savings.
Potential Benefits
- Increased Skilled Workforce: By incentivizing apprenticeships, the bill can lead to a more skilled and adaptable workforce.
- Job Creation: Apprenticeship programs often lead to full-time employment after completion.
- Reduced Unemployment: Providing training and skills can help individuals find employment opportunities.
- Support for Businesses: The tax credit reduces the financial burden on businesses that invest in apprenticeship programs.
- Potential Cost Savings: The provisions aimed at reducing government printing costs could lead to some fiscal savings.
Potential Disadvantages
- Complexity: The calculation of the tax credit and the definition of qualified apprenticeship programs could be complex for businesses to navigate.
- Potential for Abuse: There is a risk that some employers might try to exploit the tax credit without providing meaningful apprenticeship opportunities.
- Limited Scope: The credit is capped at two years per apprentice, which may not be sufficient for all apprenticeship programs.
- Administrative Burden: Implementing and overseeing the tax credit program will create an administrative burden for the IRS.
- Uncertainty of Actual Cost Savings: The actual cost savings from reduced government printing may be less than anticipated.
Constitutional Alignment
The bill primarily deals with taxation and spending, which falls under the powers granted to Congress in Article I, Section 8 of the Constitution. Specifically, Congress has the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. The bill's provisions regarding apprenticeship programs and tax credits appear to be an exercise of this power to promote the general welfare by encouraging workforce development.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).