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.
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. 
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