[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5869 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 5869

   To amend the Internal Revenue Code to provide business with a tax 
credit for investing in work-based learning for workers with low skill 
                                levels.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 12, 2020

  Mr. Horsford (for himself and Mr. Guthrie) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code to provide business with a tax 
credit for investing in work-based learning for workers with low skill 
                                levels.

    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 ``Skill and Knowledge Investments 
Leverage Leaders' Untapped Potential Tax Credit Act of 2020'' or the 
``SKILL UP Act of 2020''.

SEC. 2. WORK OPPORTUNITY TAX CREDIT FOR PARTICIPATION IN QUALIFYING 
              WORK-BASED LEARNING PROGRAMS.

    (a) In General.--Paragraph (1) of section 51(d) of the Internal 
Revenue Code of 1986 is amended by striking ``or'' at the end of 
subparagraph (I), by striking the period at the end of subparagraph (J) 
and inserting ``, or'', and by inserting after subparagraph (J) the 
following:
                    ``(K) a qualified work-based learning 
                participant.''.
    (b) Wages Per Year Taken Into Account.--Paragraph (3) of section 
51(b) of such Code is amended by inserting ``or who is a qualified 
work-based learning participant'' after ``subsection 
(d)(3)(A)(ii)(II)''.
    (c) Qualified Work-Based Learning Participant.--Section 51(d) of 
such Code is amended by adding at the end the following:
            ``(16) Qualified work-based learning participant.--
                    ``(A) In general.--The term `qualified work-based 
                learning participant' means an individual who--
                            ``(i) is a member of one of the targeted 
                        group referred to in subparagraphs (A) through 
                        (J) of paragraph (1), and
                            ``(ii) enrolled in a qualifying work-based 
                        learning opportunity either--
                                    ``(I) within 3-month period 
                                beginning on the hiring date, or
                                    ``(II) in the case of a program 
                                described in subparagraph (B)(iii), 
                                during the six-month period prior to 
                                the hiring date.
                    ``(B) Qualifying work-based learning opportunity.--
                For the purpose of this paragraph, the term `qualifying 
                work-based learning opportunity' means--
                            ``(i) an apprenticeship program registered 
                        under the Act of August 16, 1937 (commonly 
                        known as the National Apprenticeship Act; 50 
                        Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),
                            ``(ii) a program that has been approved by 
                        the designated local agency and that may be 
                        provided directly by an employer, or in 
                        partnership with one or more training 
                        providers, in which--
                                    ``(I) the training is provided to 
                                individuals who are full-time employees 
                                of the employer,
                                    ``(II) training consists of on the 
                                job instruction or a combination of on 
                                the job and classroom instruction, and
                                    ``(III) successful completion of 
                                the training program, or modules of the 
                                training program--
                                            ``(aa) provides for an 
                                        increase in hourly wages for 
                                        the employee, and
                                            ``(bb) may provide for the 
                                        attainment of a recognized 
                                        postsecondary credential (as 
                                        defined under the Workforce 
                                        Innovation and Opportunity 
                                        Act), and
                            ``(iii) a program that has been approved by 
                        the designated local agency as under clause 
                        (ii) in which a third party serves as employer 
                        of record for purposes of operating an approved 
                        program with the participating employer.''.
    (d) Credit for Tax-Exempt Employers for Employment of Qualified 
Work-Based Learning Participants.--
            (1) In general.--Paragraph (1) of section 3111(e) of such 
        Code is amended by inserting ``or qualified work-based learning 
        participant'' after ``qualified veteran'' both places it 
        appears.
            (2) Overall limitation.--Paragraph (2) of section 3111(e) 
        of such Code is amended by inserting ``or qualified work-based 
        learning participants'' after ``qualified veterans''.
            (3) Applicable period.--Paragraph (4) of section 3111(e) of 
        such Code is amended by inserting ``or qualified work-based 
        learning participant'' after ``qualified veteran'' both places 
        it appears.
            (4) Definitions.--Paragraph (5) of section 3111(e) of such 
        Code is amended by striking ``and'' at the end of subparagraph 
        (A), by striking the period at the end of subparagraph (B) and 
        inserting ``, and'', and by inserting after subparagraph (B) 
        the following:
                    ``(C) the term `qualified work-based learning 
                participant' has the meaning given such term by section 
                51(d)(16).''.
    (e) Effective Date.--The amendments made by this section shall 
apply to wages paid after 90 days after the date of the enactment of 
this Act, with respect to enrollment in qualifying work-based learning 
programs beginning after such date.
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