[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4848 Introduced in House (IH)]
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116th CONGRESS
1st Session
H. R. 4848
To amend the Internal Revenue Code of 1986 to provide a credit for
employer-provided job training, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 23, 2019
Mr. Sires introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Education and Labor, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a credit for
employer-provided job training, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Better Education and Skills Training
for America's Workforce Act''.
SEC. 2. 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. 45T. 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 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
institution of higher education 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, 2030.''.
(b) Credit To Be Part of General Business Credit.--Section 38(b) of
such Code is amended by striking ``plus'' at the end of paragraph (31),
by striking the period at the end of paragraph (32) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(33) the job training credit determined under section
45T(a).''.
(c) Credit Allowed Against Alternative Minimum Tax.--Section
38(c)(4)(B) of such Code is amended by redesignating clauses (x), (xi),
and (xii) as clauses (xi), (xii), and (xiii), respectively, and by
inserting after clause (ix) the following new clause:
``(x) the credit determined under section
45T,''.
(d) Technical Amendment.--Section 6501(m) of the Internal Revenue
Code of 1986 is amended by inserting ``45T(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. 45T. Job training credit.''.
(f) Report.--Not later than January 1, 2029, 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 45T 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 45T 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. 3. 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 48C the following new section:
``SEC. 48D. 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) (as in effect on December 31, 2017)), 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,
``(vii) the ability and capacity to
implement the program in a reasonable period of
time, and
``(viii) 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,
and
``(B) shall take into additional consideration
which applications show the ability to leverage
additional sources of capital.
``(4) 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).
``(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 by striking ``and'' at the end of clause (iv),
by striking the period at the end of clause (v) and inserting
``, and'', and by adding at the end the following new clause:
``(vi) the basis of any property to which
section 48D(e)(1) applies which is part of a
Qualified Job Training Partnership under such
section 48D.''.
(2) Section 280C of such Code is amended by adding at the
end the following new subsection:
``(i) Qualified Job Training Partnership Credit.--
``(1) In general.--No deduction shall be allowed for that
portion of the qualified investment (as defined in section
48D(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 48D(a), reduced by--
``(A) the amount disallowed as a deduction by
reason of section 48D(e)(2)(B), and
``(B) the amount of any basis reduction under
section 48D(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 48D 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 48C the
following new item:
``Sec. 48D. 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 48D(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 48D 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 48D(d) of the Internal Revenue
Code of 1986 for purposes of the credit under such section 48D.
(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 48D 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 48D 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.
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