[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4685 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 4685
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax as an incentive to partner with educational
institutions to improve workforce development and job training for
students and a credit against income tax for certain expenses of job
training programs.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 17, 2023
Ms. Kuster introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax as an incentive to partner with educational
institutions to improve workforce development and job training for
students and a credit against income tax for certain expenses of job
training programs.
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 ``Workforce Development Investment Act
of 2023''.
SEC. 2. CREDIT FOR EMPLOYERS WHICH PARTNER WITH EDUCATIONAL
INSTITUTIONS TO IMPROVE WORKFORCE DEVELOPMENT AND JOB
TRAINING FOR STUDENTS.
(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. 45BB. EMPLOYERS PARTNERING WITH EDUCATIONAL INSTITUTIONS TO
IMPROVE WORKFORCE DEVELOPMENT AND JOB TRAINING FOR
STUDENTS.
``(a) General Rule.--For purposes of section 38, the employer
partnering credit determined under this section for any taxable year is
an amount equal to $5,000 for each qualified educational institution
engaged in a qualified partnership with the employer.
``(b) Maximum Credit.--
``(1) In general.--The credit determined under this section
for any taxable year shall not exceed $20,000.
``(2) Controlled groups.--All persons treated as a single
employer under subsection (b), (c), (m), or (o) of section 414
shall be treated as a single employer for purposes of paragraph
(1).
``(c) Definitions.--For purposes of this section--
``(1) Qualified educational institution.--The term
`qualified educational institution' means any community
college, any other institution of higher education, and any
area career and technical education school.
``(2) Community college.--The term `community college'
means an institution of higher education that--
``(A) admits as a regular student an individual who
is beyond the age of compulsory school attendance in
the State in which the institution is located and who
has the ability to benefit from the training offered by
the institution, and
``(B) offers a 2-year program in engineering,
mathematics, or the physical or biological sciences
designed to prepare a student to work as a technician
or at the semiprofessional level in engineering,
scientific, or other technological fields requiring the
understanding and application of basic engineering,
scientific, or mathematical principles of knowledge.
``(3) Institution of higher education.--The term
`institution of higher education' has the meaning given such
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
``(4) Area career and technical education school.--The term
`area career and technical education school' has the meaning
given such term in section 3 of the Carl D. Perkins Career and
Technical Education Act of 2006 (29 U.S.C. 2302).
``(5) Qualified partnership.--Not later than six months
after the date of the enactment of this section, the Secretary
of Education, in consultation with the Secretary of Labor,
shall define the term `qualified partnership'. Such term shall
include a partnership through which--
``(A) an employer collaborates with an educational
institution to help develop curriculum in order to
improve workforce development and job training for
students,
``(B) an employer helps provide instruction to
students in the classroom, and
``(C) an employer provides internships,
apprenticeships, or other similar educational
opportunities in the workplace for students.
The Secretary shall, to the extent practicable, minimize the
burdens of educational institutions in any qualification
process or requirements prescribed under this paragraph.
``(d) Certain Rules To Apply.--For purposes of this section, rules
similar to the rules of subsections (c), (d), and (e) of section 52
shall apply.''.
(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 (40),
by striking the period at the end of paragraph (41) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(42) the employer partnering credit determined under
section 45BB.''.
(c) 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. 45BB. Employers partnering with educational institutions to
improve workforce development and job
training for students.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
SEC. 3. TAX CREDIT FOR EMPLOYERS WHO ENGAGE IN QUALIFIED WORKER
TRAINING.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986, as amended by the preceding
provisions of this Act, is amended by adding at the end the following
new section:
``SEC. 45CC. CREDIT FOR EMPLOYERS WHO ENGAGE IN QUALIFIED WORKER
TRAINING.
``(a) In General.--For purposes of section 38, in the case of any
employer, the worker training tax credit determined under this section
with respect to any eligible employee of the employer is an amount
equal to the lesser of--
``(1) 50 percent of the job training program expenditures
of the taxpayer with respect to such employee during the
taxable year, or
``(2) $5,000.
``(b) Job Training Program Expenses.--For purposes of this
section--
``(1) In general.--The term `job training program expenses'
means amounts paid or incurred by the employer for expenses
incurred by or on behalf of an eligible employee for
participation in a qualified training program.
``(2) Qualified training program.--The term `qualified
training program' means--
``(A) a qualified partnership (as defined in
section 45BB(c)(5)), or
``(B) an apprenticeship program registered and
certified with the Secretary of Labor under section 1
of the National Apprenticeship Act (29 U.S.C. 50).
``(c) Eligible Employee.--For purposes of this section, the term
`eligible employee' means any employee of the employer who, while
participating in the qualified training program, is--
``(1) employed on average at least 40 hours of service per
week, or
``(2) in the case of a qualified training program with a
qualified partnership (as defined in section 45BB(c)(5)), meets
such hourly work requirements as may be specified by the
Secretary of Education in connection with such partnership.
``(d) Recapture of Credit for Employee Not Performing Minimum
Service.--
``(1) In general.--In the case of any employee with respect
to whom a credit is allowed under this section and whose
employment is terminated by the employer (other than by reason
of such employee's gross misconduct) before the end of the 2-
year period beginning on the first day of the employee's study
or training with respect to which a credit is allowed under
this section, the tax of the taxpayer under this chapter for
the taxable year during which such termination occurs shall be
increased by an amount equal to--
``(A) the aggregate decrease in the credits allowed
under section 38 for all prior taxable years which
would have resulted if the job training program
expenses with respect to such employee had been zero,
multiplied by
``(B) the inclusion ratio.
``(2) Inclusion ratio.--For purposes of this subsection,
the inclusion ratio is the ratio which--
``(A) an amount equal to the difference of--
``(i) the number of days in the 2-year
period, over
``(ii) the number of days such employee was
employed by the employer during such 2-year
period, bears to
``(B) the number of days in the 2-year period.
``(e) Controlled Groups.--For purposes of this section, all persons
treated as a single employer under subsection (b), (c), (m), or (o) of
section 414 shall be treated as a single employer.''.
(b) Credit To Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code, as amended by the preceding provisions of
this Act, is amended by striking ``plus'' at the end of paragraph (41),
by striking the period at the end of paragraph (42) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(43) the worker training tax credit determined under
section 45CC(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code, as amended by the
preceding provisions of this Act, is amended by adding at the end the
following new item:
``Sec. 45CC. Credit for employers who engage in qualified worker
training.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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