[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6818 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 6818
To amend the Internal Revenue Code of 1986 to provide employers a
credit against employment and income taxes for certain employee
training expenses.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 14, 2023
Mrs. Hinson 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 provide employers a
credit against employment and income taxes for certain employee
training expenses.
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 ``Bettering Employee Skills and
Talents Act'' or the ``BEST Act''.
SEC. 2. WORKFORCE TRAINING CREDIT.
(a) In General.--Subchapter D of chapter 21 of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 3135. WORKFORCE TRAINING CREDIT.
``(a) In General.--There shall be allowed as a credit against
applicable employment taxes for each calendar quarter an amount equal
to 30 percent of the qualified workforce training expenses paid or
incurred by the employer during such calendar quarter.
``(b) Qualified Workforce Training Expenses.--For purposes of this
section--
``(1) In general.--The term `qualified workforce training
expenses' means amounts paid or incurred by the employer to
provide a qualified employee with qualified training.
``(2) Qualified employee.--The term `qualified employee'
means any employee who holds an entry-level position with the
employer and has not obtained a bachelor's degree.
``(3) Qualified training.--The term `qualified training'
means any program of training which is designed to prepare an
individual for a skill or employment classification that is
recognized by any State or local government, regulatory body,
or professional guild or organization. Such term shall not
include any program of workplace safety training unless the
skill or employment classification relates to workplace safety.
``(c) Applicable Employment Taxes.--For purposes of this section,
the term `applicable employment taxes' means the taxes imposed under
sections 3111(a), 3111(b), and 3221(a).
``(d) Carryover of Excess Credit as Employment or Income Tax
Credit.--
``(1) Credit limited to employment taxes.--The credit
allowed under subsection (a) with respect to any calendar
quarter shall not exceed the applicable employment taxes
(reduced by any credits allowed under subsection (e) or (f) of
section 3111) on the wages paid with respect to the employment
of all the employees of the employer for such calendar quarter.
``(2) Carryover as employment or income tax credit.--If the
amount of any credit under subsection (a) exceeds the
limitation of paragraph (1) for any calendar quarter, such
excess--
``(A) except as provided in subparagraph (B), shall
be carried to the succeeding calendar quarter and
allowed as a credit under subsection (a) for such
quarter, or
``(B) if the employer elects the application of
this subparagraph (at such time and in such manner as
the Secretary may provide), shall taken into account as
a current year business credit under section 38(b)(42)
for the taxable year of the employer in which or with
which such calendar quarter ends.
``(e) Recapture.--
``(1) In general.--If credit is determined under this
section with respect to any employee and such employee fails to
succeed at training, the applicable employment taxes of the
employer with respect to which such credit is determined shall
be increased for the calendar quarter which includes the date
of such failure by the aggregate amount of such credits.
``(2) Determination of failure.--An employee shall be
treated as failing to succeed at training if such employee
fails to complete the training program or fails to obtain the
skill, employment classification, or certification with respect
to which the training program relates.
``(f) Special Rules.--
``(1) Aggregation rule.--For purposes of subsection (b),
all persons treated as a single employer under subsection (a)
or (b) of section 52, or subsection (m) or (o) of section 414,
shall be treated as one employer.
``(2) Denial of double benefit.--No deduction or credit
(other than the credit determined under this section) shall be
allowed for that portion of the qualified workforce training
expenses paid or incurred in a taxable year which is equal to
the credit determined under this section with respect to such
expenses.
``(3) Exclusion of governmental and non-profit employers.--
No credit shall be allowed under this section to--
``(A) any agency or instrumentality of and Federal,
State, or local government, or
``(B) any organization exempt from the tax imposed
under chapter 1.
``(4) Election to not claim credit.--No credit shall be
determined under subsection (a) with respect to so much of the
qualified workforce training expenses as the employer elects
(at such time and in such manner as the Secretary may provide)
to not take into account for purposes of this section.
``(5) Treatment of deposits.--The Secretary shall waive any
penalty under section 6656 for any failure to make a deposit of
any applicable employment taxes if the Secretary determines
that such failure was due to the reasonable anticipation of the
credit allowed under this section.
``(6) Extension of limitation on assessment.--
Notwithstanding section 6501, the limitation on the time period
for the assessment of any amount attributable to a credit
claimed under this section shall not expire before the date
that is 5 years after the later of--
``(A) the date on which the original return which
includes the calendar quarter with respect to which
such credit is determined is filed, or
``(B) the date on which such return is treated as
filed under section 6501(b)(2).
``(g) Regulations and Guidance.--The Secretary shall issue such
forms, instructions, regulations, and other guidance as are necessary--
``(1) with respect to the application of the credit under
this section to third party payors (including professional
employer organizations, certified professional employer
organizations, or agents under section 3504), including
regulations or guidance allowing such payors to submit
documentation necessary to substantiate such credit,
``(2) to provide for adequate reporting of information to
the Secretary for purposes of this section, and
``(3) with respect to the recapture under subsection (f) of
the credit determined by this section, including the
establishment of periods after which a failure described in
subsection (f)(2) will be treated as occurring if the
requirements described in such subsection are not satisfied as
of the close of such period.
Any forms, instructions, regulations, or other guidance described in
paragraph (1) shall require the customer to be responsible for the
accounting of the credit and for any liability for improperly claimed
credits and shall require the certified professional employer
organization or other third party payor to accurately report such tax
credits based on the information provided by the customer.''.
(b) Conforming Amendments.--
(1) 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) in the case of a taxpayer making the election under
3135(e)(2)(B) for any calendar quarter ending during or with
such taxable year, the amount treated as a credit under this
paragraph pursuant to such election.''.
(2) Section 3511(d)(2) of such Code is amended by striking
``and'' at the end of subparagraph (H), by redesignating
subparagraph (I) as subparagraph (J), and by inserting after
subparagraph (H) the following new subparagraph:
``(I) section 3135 (workforce training credit),
and''.
(3) The table of sections for subchapter D of chapter 21 of
such Code is amended by adding at the end the following new
item:
``Sec. 3135. Workforce training credit.''.
(c) Effective Date.--The amendments made by this section shall
apply to calendar quarters beginning after the date of the enactment of
this Act.
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