is being determined, rounded to the next lower whole number. (2) First year of new apprenticeship programs In the case of an employer which did not have any apprenticeship employees during any taxable year in the 3 taxable years preceding the taxable year for which the credit is being determined, the applicable apprenticeship level shall be equal to zero. (e) Exclusion for certain industries (1) In general No credit may be allowed under this section with respect to an individual employed by an employer in any sector described in the North American Industry Classification System code beginning with 23 unless— (A) such individual is a pre-apprenticeship graduate currently enrolled in an apprenticeship program, and (B) such employer participates in or sponsors an apprenticeship program. (2) Pre-apprenticeship graduate For purposes of this subsection, the term pre-apprenticeship graduate means any individual who has completed a pre-apprenticeship program. (3) Pre-apprenticeship program For purposes of this subsection, the term pre-apprenticeship program means a program that— (A) is designed to prepare participants to enter an apprenticeship program, (B) is carried out by a sponsor that has a documented partnership with 1 or more sponsors of apprenticeship programs, and (C) includes each of the following: (i) Training (including a curriculum for the training) and theoretical education for participants that— (I) is aligned with industry standards related to an apprenticeship program and reviewed and approved annually by sponsors of the apprenticeship program within the documented partnership that will prepare participants by teaching the skills and competencies needed to enter 1 or more apprenticeship programs, and (II) does not displace a paid employee. (ii) A formal agreement with a sponsor of an apprenticeship program that will facilitate or expedite entry of pre-apprenticeship graduates into the apprenticeship program, provided that a place in the apprenticeship program is available and that the pre-apprenticeship