text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Apprenticeship and Jobs Training Act 
  of 2014''.
  
  SEC. 2. TAX CREDIT FOR 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. CREDIT FOR APPRENTICESHIP PROGRAM EXPENSES.
  
      ``(a) Tax Credit.--
              ``(1) In general.--For purposes of section 38, in the case 
          of an employer, the apprenticeship program credit determined 
          under this section for any taxable year with respect to each 
          qualified individual in a qualified apprenticeship program is 
          an amount equal to the lesser of--
                      ``(A) the amount of any wages (as defined in 
                  section 51(c)(1)) paid or incurred by the employer with 
                  respect to such qualified individual during the taxable 
                  year, or
                      ``(B) $5,000.
              ``(2) Established apprenticeship programs.--
                      ``(A) In general.--The apprenticeship program 
                  credit determined under this section for the taxable 
                  year shall only be applicable to the number of 
                  qualified individuals in a qualified apprenticeship 
                  program which are in excess of the apprenticeship 
                  participation average for such employer (as determined 
                  under subparagraph (B)).
                      ``(B) Apprenticeship participation average.--For 
                  purposes of subparagraph (A), the apprenticeship 
                  participation average shall be equal to the average of 
                  the total number of qualified individuals in the 
                  qualified apprenticeship program of the employer for--
                              ``(i) the 3 preceding taxable years, or
                              ``(ii) the number of taxable years in which 
                          the qualified apprenticeship program was in 
                          existence, whichever is less.
              ``(3) Denial of double benefit.--No deduction or any other 
          credit shall be allowed under this chapter for any amount taken 
          into account in determining the credit under this section.
              ``(4) Election not to claim credit.--This section shall not 
          apply to a taxpayer for any taxable year if such taxpayer 
          elects to have this section not apply for such taxable year.
              ``(5) Limitation.--The apprenticeship program credit under 
          this section shall not be allowed for more than 3 taxable years 
          with respect to any qualified individual.
      ``(b) Qualified Individual.--
              ``(1) In general.--For purposes of this section, the term 
          `qualified individual' means, with respect to any taxable year, 
          an individual who is an apprentice and--
                      ``(A) is participating in a qualified 
                  apprenticeship program with an employer that is subject 
                  to the terms of a valid apprenticeship agreement (as 
                  defined in section 29.7 of title 29 of the Code of 
                  Federal Regulations),
                      ``(B) has been employed under a qualified 
                  apprenticeship program for a period of not less than 7 
                  months that ends within the taxable year,
                      ``(C) is not a highly compensated employee (as 
                  defined in section 414(q)), and
                      ``(D) is not a seasonal worker (as defined in 
                  section 45R(d)(5)(B)).
              ``(2) Training received by members of the armed forces.--An 
          employer shall consider and may accept, in the case of a 
          qualified individual participating in a qualified 
          apprenticeship program, any relevant training or instruction 
          received by such individual while serving in the Armed Forces 
          of the United States, for the purpose of satisfying the 
          applicable training and instruction requirements under such 
          qualified apprenticeship program.
              ``(3) Ineligibility of certain individuals.--For purposes 
          of this subsection, paragraphs (1) and (2) of section 51(i) 
          shall apply.
      ``(c) Qualified Apprenticeship Program.--
              ``(1) In general.--For purposes of this section, the term 
          `qualified apprenticeship program' means an apprenticeship 
          program (as defined in section 29.2 of title 29 of the Code of 
          Federal Regulations), whether or not such program is 
          administered by the employer, which--
                      ``(A) provides qualified individuals with on-the-
                  job training and instruction for a qualified occupation 
                  with the employer,
                      ``(B) is registered with the Office of 
                  Apprenticeship of the Employment and Training 
                  Administration of the Department of Labor or a State 
                  apprenticeship agency recognized by such Office of 
                  Apprenticeship,
                      ``(C) maintains records relating to the qualified 
                  individual, in such manner as the Secretary, after 
                  consultation with the Secretary of Labor, may 
                  prescribe, and
                      ``(D) satisfies such other requirements as the 
                  Secretary, after consultation with the Secretary of 
                  Labor, may prescribe.
              ``(2) Qualified occupation.--For purposes of paragraph 
          (1)(A), the term `qualified occupation' means a skilled trade 
          occupation in a high-demand mechanical, technical, healthcare, 
          or technology field (or such other occupational field as the 
          Secretary, after consultation with the Secretary of Labor, may 
          prescribe) that satisfies the criteria for an apprenticeable 
          occupation under section 29.4 of title 29 of the Code of 
          Federal Regulations.
      ``(d) Apprenticeship Agreement.--
              ``(1) In general.--For purposes of this section, the term 
          `apprenticeship agreement' means an agreement between a 
          qualified individual and an employer that satisfies the 
          criteria under section 29.7 of title 29 of the Code of Federal 
          Regulations.
              ``(2) Credit for training received under apprenticeship 
          agreement.--If a qualified individual has received training or 
          instruction through a qualified apprenticeship program with an 
          employer which is subsequently unable to satisfy its 
          obligations under the apprenticeship agreement, such individual 
          may transfer any completed training or instruction for purposes 
          of satisfying any applicable training and instruction 
          requirements under a separate apprenticeship agreement with a 
          different employer.
      ``(e) Application of Certain Rules.--For purposes of this section, 
  all persons 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 person.
      ``(f) Regulations.--The Secretary shall prescribe such regulations 
  as may be necessary to carry out the provisions of this section, 
  including regulations to provide for application of paragraphs (1) and 
  (2) of subsection (a) with respect to qualified individuals in a 
  qualified apprenticeship program who are employed by more than 1 
  employer.''.
      (b) Credit To Be Part of General Business Credit.--Section 38(b) of 
  the Internal Revenue Code of 1986 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 program expenses credit 
          determined under section 45S(a).''.
      (c) Clerical Amendment.--The table of sections for 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 item:
  
  ``Sec. 45S. Credit for apprenticeship program expenses.''.
      (d) Conforming Amendments.--
              (1) Rule for employment credits.--Section 280C(a) of the 
          Internal Revenue Code of 1986 is amended by inserting 
          ``45S(a),'' after ``45P(a),''.
              (2) Exclusion for determination of credit for increasing 
          research activities.--Clause (iii) of section 41(b)(2)(D) of 
          such Code is amended by inserting ``the apprenticeship program 
          credit under section 45S(a) or'' after ``in determining''.
      (e) Evaluation.--Not later than 3 years after the date of the 
  enactment of this Act, and annually thereafter, the Comptroller General 
  of the United States shall submit a report to the Committees on Finance 
  and Health, Education, Labor, and Pensions of the Senate and the 
  Committees on Ways and Means and Education and the Workforce of the 
  House of Representatives that contains an evaluation of the activities 
  authorized under this Act, including--
              (1) the extent to which qualified individuals completed 
          qualified apprenticeship programs;
              (2) whether qualified individuals remained employed by an 
          employer that received an apprenticeship program credit under 
          section 45S of the Internal Revenue Code of 1986 and the length 
          of such employment following expiration of the apprenticeship 
          period;
              (3) whether qualified individuals who completed a qualified 
          apprenticeship program remained employed in the same occupation 
          or field; and
              (4) recommendations for legislative and administrative 
          actions to improve the effectiveness of the apprenticeship 
          program credit under section 45S of the Internal Revenue Code 
          of 1986.
      (f) Effective Date.--The amendments made by this Act shall apply to 
  taxable years beginning after December 31, 2014.
  
  SEC. 3. ENCOURAGING MENTORS TO TRAIN THE FUTURE.
  
      (a) Early Distributions From Qualified Retirement Plans.--Section 
  72(t)(2) of the Internal Revenue Code of 1986 is amended--
              (1) in subparagraph (A)--
                      (A) by striking ``or'' at the end of clause (vii);
                      (B) by striking the period at the end of clause 
                  (viii) and inserting ``, or''; and
                      (C) by adding at the end the following new clause:
                              ``(ix) made to an employee who is serving 
                          as a mentor.''; and
              (2) by adding at the end the following new subparagraph:
                      ``(H) Distributions to mentors.--For purposes of 
                  this paragraph, the term `mentor' means an individual 
                  who--
                              ``(i) has attained 55 years of age,
                              ``(ii) is not separated from their 
                          employment with a company, corporation, or 
                          institution of higher education,
                              ``(iii) in accordance with such 
                          requirements and standards as the Secretary 
                          determines to be necessary, has substantially 
                          reduced their hours of employment with their 
                          employer, with the individual to be engaged in 
                          mentoring activities described in clause (iv) 
                          for not less than 20 percent of the hours of 
                          employment after such reduction, and
                              ``(iv) is responsible for the training and 
                          education of employees or students in an area 
                          of expertise for which the individual has a 
                          professional credential, certificate, or 
                          degree.''.
      (b) Distributions During Working Retirement.--Paragraph (36) of 
  section 401(a) of the Internal Revenue Code of 1986 is amended to read 
  as follows:
              ``(36) Distributions during working retirement.--
                      ``(A) In general.--A trust forming part of a 
                  pension plan shall not be treated as failing to 
                  constitute a qualified trust under this section solely 
                  because the plan provides that a distribution may be 
                  made from such trust to an employee who--
                              ``(i) has attained age 62 and who is not 
                          separated from employment at the time of such 
                          distribution, or
                              ``(ii) subject to subparagraph (B), is 
                          serving as a mentor (as such term is defined in 
                          section 72(t)(2)(H)).
                      ``(B) Limitation on distributions to mentors.--For 
                  purposes of subparagraph (A)(ii), the amount of the 
                  distribution made to an employee who is serving as a 
                  mentor shall not be greater than the amount equal to 
                  the product obtained by multiplying--
                              ``(i) the amount of the distribution that 
                          would have been payable to the employee if such 
                          employee had separated from employment instead 
                          of reducing their hours of employment with 
                          their employer and engaging in mentoring 
                          activities, in accordance with clauses (iii) 
                          and (iv) of section 72(t)(2)(H), by
                              ``(ii) the percentage equal to the quotient 
                          obtained by dividing--
                                      ``(I) the sum of--
                                              ``(aa) the number of hours 
                                          per pay period by which the 
                                          employee's hours of employment 
                                          are reduced, and
                                              ``(bb) the number of hours 
                                          of employment that such 
                                          employee is engaging in 
                                          mentoring activities, by
                                      ``(II) the total number of hours 
                                  per pay period worked by the employee 
                                  before such reduction in hours of 
                                  employment.''.
      (c) ERISA.--Subparagraph (A) of section 3(2) of the Employee 
  Retirement Income Security Act of 1974 (29 U.S.C. 1002(2)) is amended 
  by striking the period at the end and inserting the following: ``, or 
  solely because such distribution is made to an employee who is serving 
  as a mentor (as such term is defined in section 72(t)(2)(H) of the 
  Internal Revenue Code of 1986).''.
      (d) Effective Date.--The amendments made by this section shall 
  apply to distributions made in taxable years beginning after December 
  31, 2014.
target: Apprenticeship and Jobs Training Act of 2014 - Amends the Internal Revenue Code to allow employers a business-related tax credit for up to $5,000 for the training of a qualified individual in a qualified apprenticeship program. Defines a "qualified individual" as an individual who: (1) is an apprentice participating in a&nbsp;qualified apprenticeship program, (2)&nbsp;has been employed in such a program for a period of at least seven months that ends within the taxable year, and (3) is not a highly compensated employee or a seasonal worker. Defines a "qualified apprenticeship program" as a program that: (1) provides qualified individuals with on-the-job training and instruction for a qualified occupation (i.e., a skilled trade occupation in a high-demand mechanical, technical, health care, or technology field); (2) is registered with the Office of Apprenticeship of the Department of Labor; and (3) maintains records relating to the qualified individual. Allows a premature distribution, without penalty, from&nbsp;a tax-qualified retirement plan to an employee who is serving as a mentor. Defines a &quot;mentor&quot; as a working individual who: (1) has attained age 55; (2) works reduced hours and engages in mentoring activities for at least 20% of such hours; and (3) is responsible for the training and education of employees or students in an area of expertise for which such individual has a professional credential, certificate, or degree. 
feat_title: Apprenticeship and Jobs Training Act of 2014