[Pages S7623-S7625]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 1778. Mr. MENENDEZ submitted an amendment intended to be proposed 
by him to the bill H.R. 1, to provide for reconciliation pursuant to 
titles II and V of the concurrent resolution on the budget for fiscal 
year 2018; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. JOB TRAINING TAX CREDIT.

       (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. JOB TRAINING CREDIT.

       ``(a) In General.--For the purposes of section 38, the job 
     training credit determined under this section for the taxable 
     year is an amount equal to 100 percent of the qualified 
     training expenses paid by the qualifying taxpayer during the 
     taxable year.
       ``(b) Limitation.--The credit allowed under subsection (a) 
     with respect to any eligible trainee of the qualifying 
     taxpayer shall not exceed the excess (if any) of $4,000 over 
     the aggregate credit allowed to such taxpayer under this 
     section with respect to such eligible trainee for all prior 
     taxable years.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified training expenses.--
       ``(A) In general.--The term `qualified training expenses' 
     means, with respect to

[[Page S7624]]

     any eligible trainee of the qualifying taxpayer, expenses 
     paid or incurred by such taxpayer for qualified tuition costs 
     of such eligible trainee.
       ``(B) Qualified tuition costs.--The term `qualified tuition 
     costs' means costs for books and enrollment in a training 
     program at a qualified educational organization, the outcome 
     of which, if completed, will provide the eligible trainee a 
     certificate or credential recognized by a State accrediting 
     body, Federal Apprenticeship Agency, or any other national 
     accrediting body recognized by the Department of Education as 
     an independent, third-party accrediting body. Such training 
     program--
       ``(i) may include a single course, multiple courses, or a 
     combination of work training and study, and
       ``(ii) must be reasonably necessary for employment with the 
     qualifying taxpayer.
       ``(C) Qualified educational organization.--The term 
     `qualified educational organization' means any educational 
     organization described in section 101 of the Higher Education 
     Act of 1965.
       ``(2) Qualifying taxpayer.--The term `qualifying taxpayer' 
     means any taxpayer who--
       ``(A) with respect to any eligible trainee, is training and 
     hiring individuals for positions based in the United States, 
     and
       ``(B) provides, with respect to any eligible trainee, such 
     documentation as required by the Secretary regarding 
     qualified training expenses and proof of unemployment status 
     as described in paragraph (3)(A).
       ``(3) Eligible trainee.--The term `eligible trainee' means 
     any individual who--
       ``(A) has been unemployed for at least 90 days before the 
     date of enrollment in a training program described in 
     paragraph (1)(B), and
       ``(B) had not been employed by the qualifying taxpayer at 
     any time during the 2-year period preceding the date on which 
     such trainee was hired.
       ``(d) Special Rules.--
       ``(1) Denial of double benefit.--No credit shall be allowed 
     under subsection (a) for any qualified training expense for 
     which a deduction or other credit is allowed to the taxpayer 
     under any other provision of this chapter.
       ``(2) Aggregation.--For purposes of this section, all 
     persons treated as a single employer under subsection (a) or 
     (b) or section 52, or subsection (m) or (o) of section 414, 
     shall be treated as one person.
       ``(e) Election To Have Credit Not Apply.--A taxpayer may 
     elect (at such time and in such manner as the Secretary may 
     by regulations prescribe) to have this section not apply for 
     any taxable year.
       ``(f) Termination.--This section shall not apply to 
     expenses paid after December 31, 2028.''.
       (b) Credit To Be Part of General Business Credit.--
     Subsection (b) of section 38 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 job training credit determined under section 
     45S(a).''.
       (c) Credit Allowed Against Alternative Minimum Tax.--
     Section 38(c)(4)(B) of the Internal Revenue Code of 1986 is 
     amended by redesignating clauses (ix), (x), and (xi) as 
     clauses (x), (xi), and (xii), respectively, and by inserting 
     after clause (viii) the following new clause:
       ``(ix) the credit determined under section 45S,''.
       (d) Technical Amendment.--Section 6501(m) of the Internal 
     Revenue Code of 1986 is amended by inserting ``45S(e),'' 
     after ``45H(g),''.
       (e) Clerical Amendment.--The table of sections for subpart 
     D of part IV of subchapter A of chapter 1 of such Code is 
     amended by adding at the end the following new item:

``Sec. 45S. Job training credit.''.

       (f) Report.--Not later than January 1, 2027, the Secretary 
     of the Treasury (or the Secretary's delegate) shall report to 
     the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate on 
     the economic impact of the job training credit under section 
     45S of the Internal Revenue Code of 1986 (as added under 
     subsection (a)).
       (g) Effective Dates.--
       (1) In general.--The amendments made by this section shall 
     apply to expenses paid or incurred after the date of the 
     enactment of this Act, in taxable years ending after such 
     date.
       (2) Minimum tax.--The amendments made by subsection (c) 
     shall apply to credits determined under section 45S of the 
     Internal Revenue Code of 1986 in taxable years ending after 
     the date of the enactment of this Act, and to carrybacks of 
     such credits.

     SEC. __. QUALIFIED JOB TRAINING PARTNERSHIP CREDIT.

       (a) In General.--Subpart E of part IV of subchapter A of 
     chapter 1 of the Internal Revenue Code of 1986 is amended by 
     inserting after section 48D the following new section:

     ``SEC. 48E. QUALIFIED JOB TRAINING PARTNERSHIP CREDIT.

       ``(a) In General.--For purposes of section 46, the 
     Qualified Job Training Partnership credit for any taxable 
     year is an amount equal to the percentage determined by the 
     Secretary (not to exceed 100 percent) of the qualified 
     investment for such taxable year with respect to any 
     Qualified Job Training Partnership.
       ``(b) Qualified Investment.--
       ``(1) In general.--For purposes of subsection (a), the 
     qualified investment for any taxable year is the aggregate 
     amount of the costs paid or incurred in such taxable year for 
     expenses necessary for and directly related to the conduct of 
     a Qualified Job Training Partnership in the form of 
     contributions of cash, cash equivalent, equipment, or any 
     combination of the three where 100 percent of the investment 
     is used for the planning, implementation, or operation of a 
     Qualified Job Training Partnership and the training financed 
     through the investment must result in a type of certificate 
     or credential recognized by a State accrediting body, Federal 
     Apprenticeship Agency, or any other national accrediting body 
     recognized by the Department of Education as an independent, 
     third-party accrediting body.
       ``(2) Limitation.--The amount which is treated as qualified 
     investment for all taxable years with respect to any 
     Qualified Job Training Partnership shall not exceed the 
     amount certified by the Secretary as eligible for the credit 
     under this section.
       ``(3) Exclusions.--The qualified investment for any taxable 
     year with respect to any Qualified Job Training Partnership 
     shall not take into account any cost for student tuition or 
     for any other expense as determined by the Secretary as 
     appropriate to carry out the purposes of this section.
       ``(4) Certain progress expenditure rules made applicable.--
     In the case of costs described in paragraph (1) that are paid 
     for property of a character subject to an allowance for 
     depreciation, rules similar to the rules of subsections 
     (c)(4) and (d) of section 46 (as in effect on the day before 
     the date of the enactment of the Revenue Reconciliation Act 
     of 1990) shall apply for purposes of this section.
       ``(c) Qualified Job Training Partnership.--
       ``(1) In general.--The term `Qualified Job Training 
     Partnership' means a formal or informal partnership between 
     at least 1 eligible private business employer and--
       ``(A) 1 qualified educational institution, or
       ``(B) 1 labor organization (as defined in section 2(5) of 
     the National Labor Relations Act),

     where the stated goal of the partnership is to train students 
     in job-ready skills.
       ``(2) Eligible private business employer.--The term 
     `eligible private business employer' means--
       ``(A) a business entity at least 50 percent of the gross 
     income of which is derived from qualified production 
     activities (within the meaning of section 199(c)), or
       ``(B) any type of domestic business entity the average 
     number of employees of which for any taxable year is not more 
     than 500 employees.
       ``(3) Qualified educational organization.--The term 
     `qualified educational organization' means any educational 
     organization described in section 101 of the Higher Education 
     Act of 1965 which provides a 2-year program that culminates 
     in an associate degree.
       ``(d) Qualified Job Training Partnership Program.--
       ``(1) Establishment.--
       ``(A) In general.--Not later than 60 days after the date of 
     the enactment of this section, the Secretary, in consultation 
     with the Secretary of Labor, shall establish a Qualified Job 
     Training Partnership program to consider and award 
     certifications for qualified investments eligible for credits 
     under this section to Qualified Job Training Partnerships.
       ``(B) Limitation.--The total amount of credits that may be 
     allocated under the program shall not exceed $1,000,000,000.
       ``(2) Certification.--
       ``(A) Application period.--Each applicant for certification 
     under this paragraph shall submit an application containing 
     such information as the Secretary may require during the 
     period beginning on the date the Secretary establishes the 
     program under paragraph (1).
       ``(B) Time for review of applications.--The Secretary shall 
     take action to approve or deny any application under 
     subparagraph (A) within 30 days of the submission of such 
     application.
       ``(C) Multi-year applications.--An application for 
     certification under subparagraph (A) may include a request 
     for an allocation of credits for more than 1 year.
       ``(3) Selection criteria.--In determining the Qualified Job 
     Training Partnerships with respect to which qualified 
     investments may be certified under this section, the 
     Secretary--
       ``(A) shall give priority to those applications which 
     demonstrate--
       ``(i) the greatest probability that those who complete the 
     program will secure employment,
       ``(ii) the greatest potential for providing workers who 
     complete the program with skills that can provide long-term 
     job and income security,
       ``(iii) the strongest market demand for the type of 
     training offered,
       ``(iv) the greatest probability that the program would 
     create a net increase in job training opportunities,
       ``(v) a strong need in the community for skills training,
       ``(vi) the ability to allow nontraditional learners to 
     complete the training, and
       ``(vii) the ability and capacity to implement the program 
     in a reasonable period of time, and

[[Page S7625]]

       ``(B) shall take into additional consideration which 
     applications show--
       ``(i) the ability to leverage additional sources of 
     capital, and
       ``(ii) the greatest ability to offer training programs that 
     result in a certificate or credential (within the meaning of 
     subsection (b)(1)) that is stackable or portable or both.
       ``(4) Review and additional allocation.--
       ``(A) Review.--Not later than 1 year after the date of 
     enactment of this section, the Secretary shall review the 
     credits allocated under this section as of such date.
       ``(B) Additional allocation.--If the Secretary determines 
     at the time of the review that credits under this section are 
     available for allocation pursuant to the requirements set 
     forth in paragraph (2), the Secretary is authorized to 
     allocate such available credits through the conduct of an 
     additional program or programs for applications for 
     certification.
       ``(5) Disclosure of allocations.--The Secretary shall, upon 
     making a certification under this subsection, publicly 
     disclose the identity of the applicant and the amount of the 
     credit with respect to such applicant.
       ``(e) Special Rules.--
       ``(1) Basis adjustment.--For purposes of this subtitle, if 
     a credit is allowed under this section for an expenditure 
     related to property of a character subject to an allowance 
     for depreciation, the basis of such property shall be reduced 
     by the amount of such credit.
       ``(2) Denial of double benefit.--
       ``(A) Bonus depreciation.--A credit shall not be allowed 
     under this section for any investment for which bonus 
     depreciation is allowed under section 168(k), 1400L(b)(1), or 
     1400N(d)(1).
       ``(B) Deductions.--No deduction under this subtitle shall 
     be allowed for the portion of the expenses otherwise 
     allowable as a deduction taken into account in determining 
     the credit under this section for the taxable year which is 
     equal to the amount of the credit determined for such taxable 
     year under subsection (a) attributable to such portion. This 
     subparagraph shall not apply to expenses related to property 
     of a character subject to an allowance for depreciation the 
     basis of which is reduced under paragraph (1), or which are 
     described in section 280C(g).''.
       (b) Inclusion as Part of Investment Credit.--Section 46 of 
     the Internal Revenue Code of 1986 is amended--
       (1) by striking ``and'' at the end of paragraph (5);
       (2) by striking the period at the end of paragraph (6) and 
     inserting ``, and''; and
       (3) by adding at the end the following new paragraph:
       ``(7) the Qualified Job Training Partnership credit.''.
       (c) Conforming Amendments.--
       (1) Section 49(a)(1)(C) of the Internal Revenue Code of 
     1986 is amended--
       (A) by striking ``and'' at the end of clause (v);
       (B) by striking the period at the end of clause (vi) and 
     inserting ``, and''; and
       (C) by adding at the end the following new clause:
       ``(vii) the basis of any property to which paragraph (1) of 
     section 48E(e) applies which is part of a Qualified Job 
     Training Partnership under such section 48E.''.
       (2) Section 280C of such Code is amended by adding at the 
     end the following new subsection:
       ``(j) Qualified Job Training Partnership Credit.--
       ``(1) In general.--No deduction shall be allowed for that 
     portion of the qualified investment (as defined in section 
     48E(b)) otherwise allowable as a deduction for the taxable 
     year which is equal to the amount of the credit determined 
     for such taxable year under section 48E(a), reduced by--
       ``(A) the amount disallowed as a deduction by reason of 
     section 48E(e)(2)(B), and
       ``(B) the amount of any basis reduction under section 
     48E(e)(1).
       ``(2) Similar rule where taxpayer capitalizes rather than 
     deducts expenses.--In the case of expenses described in 
     paragraph (1)(A) taken into account in determining the credit 
     under section 48E for the taxable year, if--
       ``(A) the amount of the portion of the credit determined 
     under such section with respect to such expenses, exceeds
       ``(B) the amount allowable as a deduction for such taxable 
     year for such expenses (determined without regard to 
     paragraph (1)),

     the amount chargeable to capital account for the taxable year 
     for such expenses shall be reduced by the amount of such 
     excess.
       ``(3) Controlled groups.--Paragraph (3) of subsection (b) 
     shall apply for purposes of this subsection.''.
       (d) Clerical Amendment.--The table of sections for subpart 
     E of part IV of subchapter A of chapter 1 of the Internal 
     Revenue Code of 1986 is amended by inserting after the item 
     relating to section 48D the following new item:

``Sec. 48E. Qualified Job Training Partnership credit.''.
       (e) Grants for Qualified Investments in Qualified Job 
     Training Partnerships in Lieu of Tax Credits.--
       (1) In general.--Upon application, the Secretary of the 
     Treasury shall, subject to the requirements of this 
     subsection, provide a grant to each person who makes a 
     qualified investment in a Qualified Job Training Partnership 
     in an amount not to exceed 100 percent of such investment.
       (2) Application.--
       (A) In general.--At the stated election of the applicant, 
     an application for certification under section 48E(d)(2) of 
     the Internal Revenue Code of 1986 for a credit under such 
     section for any taxable year shall be considered to be an 
     application for a grant under paragraph (1) for such taxable 
     year.
       (B) Submission date.--An application for a grant under 
     paragraph (1) for any taxable year shall be submitted--
       (i) not earlier than the day after the last day of such 
     taxable year; and
       (ii) not later than the due date (including extensions) for 
     filing the return of tax for such taxable year.
       (C) Information to be submitted.--An application for a 
     grant under paragraph (1) shall include such information and 
     be in such form as the Secretary of the Treasury may require 
     to state the amount of the credit allowable (but for the 
     receipt of a grant under this subsection) under section 48E 
     for the taxable year for the qualified investment with 
     respect to which such application is made.
       (3) Time for payment of grant.--
       (A) In general.--The Secretary of the Treasury shall make 
     payment of the amount of any grant under paragraph (1) during 
     the 30-day period beginning on the later of--
       (i) the date of the application for such grant; or
       (ii) the date the qualified investment for which the grant 
     is being made is made.
       (B) Regulations.--In the case of investments of an ongoing 
     nature, the Secretary of the Treasury shall issue regulations 
     to determine the date on which a qualified investment shall 
     be deemed to have been made for purposes of this paragraph.
       (4) Qualified investment.--For purposes of this subsection, 
     the term ``qualified investment'' means a qualified 
     investment that is certified under section 48E(d) of the 
     Internal Revenue Code of 1986 for purposes of the credit 
     under such section 48E.
       (5) Application of certain rules.--
       (A) In general.--In making grants under this subsection, 
     the Secretary of the Treasury shall apply rules similar to 
     the rules of section 50 of the Internal Revenue Code of 1986. 
     In applying such rules, any increase in tax under chapter 1 
     of such Code by reason of an investment ceasing to be a 
     qualified investment shall be imposed on the person to whom 
     the grant was made.
       (B) Special rules.--
       (i) Recapture of excessive grant amounts.--If the amount of 
     a grant made under this subsection exceeds the amount 
     allowable as a grant under this subsection, such excess shall 
     be recaptured under subparagraph (A) as if the investment to 
     which such excess portion of the grant relates had ceased to 
     be a qualified investment immediately after such grant was 
     made.
       (ii) Grant information not treated as return information.--
     In no event shall the amount of a grant made under paragraph 
     (1), the identity of the person to whom such grant was made, 
     or a description of the investment with respect to which such 
     grant was made be treated as return information for purposes 
     of section 6103 of the Internal Revenue Code of 1986.
       (6) Secretary.--Any reference in this subsection to the 
     Secretary of the Treasury shall be treated as including the 
     Secretary's delegate.
       (7) Other terms.--Any term used in this subsection which is 
     also used in section 48E of the Internal Revenue Code of 1986 
     shall have the same meaning for purposes of this subsection 
     as when used in such section.
       (8) Denial of double benefit.--No credit shall be allowed 
     under section 46(7) of the Internal Revenue Code of 1986 by 
     reason of section 48E of such Code for any investment for 
     which a grant is awarded under this subsection.
       (9) Appropriations.--There is hereby appropriated to the 
     Secretary of the Treasury such sums as may be necessary to 
     carry out this subsection.
       (f) Effective Date.--The amendments made by subsections (a) 
     through (d) of this section shall apply to amounts paid or 
     incurred after the date of the enactment of this Act, in 
     taxable years beginning after such date.
                                 ______