LEAP Act Offers New Tax Breaks for Apprenticeships, Aims to Cut Government Printing Costs

The "Leveraging and Energizing America’s Apprenticeship Programs Act," or LEAP Act, is a two-pronged bill. It introduces a new tax credit for businesses hiring apprentices and also pushes the government to cut down on printing costs by going digital.

Tax Credits: A Boost for Apprenticeships?

The LEAP Act throws a bone to companies that invest in apprenticeships. If you hire folks into a qualified apprenticeship program, you could get a $1,500 tax credit for each apprentice, but it is for a maximum of 2 years per employee (SEC. 2). This is on top of the average number of apprentices you've had over the last 3 years. So if you averaged 10 apprentices in the past, and now you have 15, the credit applies to those extra 5.

Now, who qualifies as an "apprenticeship employee"? It's someone in a recognized trade, officially enrolled in a registered apprenticeship program (SEC. 2). Think plumbers, electricians, and other skilled trades. For most industries, the credit kicks in once you have more apprentices than 80% of your average from the previous three years. If you are new to the apprenticeship game, that baseline is zero (SEC. 2). Construction companies have an extra hurdle: to get the credit, the apprentice needs to have graduated from a "pre-apprenticeship program" and the company has to be involved in or sponsor an apprenticeship program (SEC. 2).

• Real-World Example: Imagine a small manufacturing company that usually hires 2 apprentices a year. If they ramp it up to 4 apprentices, they might be eligible for a $3,000 tax credit (2 extra apprentices x $1,500). But if they only hire 3, they might not qualify because of the 'Applicable Apprenticeship Level' rule.

This credit is part of the general business credit, and it can reduce other credits you might be claiming for the same employee (SEC. 2). And, of course, no double-dipping – you can't claim this credit and other deductions for the same apprentice-related expenses (SEC. 2). These changes apply to apprentices who start after the bill becomes law (SEC. 2).

Printing Cuts: Going Digital, But With Caveats

The second part of the LEAP Act targets government printing costs. The Office of Management and Budget (OMB) is tasked with figuring out which government publications can be moved online (SEC. 3). The goal is to create a 10-year strategy, starting in fiscal year 2026, to shrink the government's printing footprint (SEC. 3).

However, the bill recognizes that not everyone has reliable internet access. It specifically states that essential printed documents must remain available for Social Security recipients, Medicare beneficiaries, and people with limited internet (SEC. 3). Think of your grandma who still gets her Social Security information in the mail – she'll still get it.

• Real-World Example: A government agency that currently prints thousands of copies of a lengthy report might be required to switch to a primarily online format, potentially saving on paper, printing, and distribution costs. But they'd still need to provide printed copies to those who need them.

The bill also pushes for more transparency. Every government publication distributed to the public will have to include the issuing agency's name, the number of copies printed, the total production cost, and the publisher's name (SEC. 3). This is like seeing the nutrition facts on your food, but for government documents.

The Big Picture

The LEAP Act tries to tackle two seemingly unrelated issues: boosting workforce development through apprenticeships and cutting government waste. The apprenticeship tax credit could be a significant incentive for some businesses, but the rules around it are pretty complex. The push to reduce printing costs seems sensible, but the devil is in the details – how will the government ensure everyone has access to the information they need?