[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5493 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 5493

 To amend the Internal Revenue Code of 1986 to allow a credit against 
   tax for charitable donations to nonprofit organizations providing 
                          workforce training.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2025

     Mr. Smucker (for himself, Mr. Smith of Nebraska, Mr. Kelly of 
 Pennsylvania, and Mr. Miller of Ohio) 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 a credit against 
   tax for charitable donations to nonprofit organizations providing 
                          workforce training.

    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 ``USA Workforce Investment Act''.

SEC. 2. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO WORKFORCE 
              DEVELOPMENT OR APPRENTICESHIP TRAINING PROGRAMS.

    (a) Allowance of Credit.--
            (1) In general.--Subpart A of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        inserting after section 25F the following new section:

``SEC. 25G. CONTRIBUTIONS TO WORKFORCE DEVELOPMENT AND APPRENTICESHIP 
              TRAINING PROGRAMS.

    ``(a) Allowance of Credit.--In the case of an individual who is a 
citizen or resident of the United States (within the meaning of section 
7701(a)(9)), there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal to the aggregate 
amount of qualified contributions made by the taxpayer during the year.
    ``(b) Limitations.--
            ``(1) In general.--The credit allowed under subsection (a) 
        to any taxpayer for any taxable year shall not exceed $1,700.
            ``(2) Reduction based on state credit.--The amount allowed 
        as a credit under subsection (a) for a taxable year shall be 
        reduced by the amount allowed as a credit on any State tax 
        return of the taxpayer for qualified contributions made by the 
        taxpayer during the taxable year.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified contribution.--The term `qualified 
        contribution' means a charitable contribution (as defined by 
        section 170(c)) to a workforce development or apprenticeship 
        training organization in the form of cash if such contribution 
        is designated by such organization to be used only for the 
        purpose of providing workforce development or apprenticeship 
        training programs.
            ``(2) Workforce development or apprenticeship training 
        organization.--The term `workforce development or 
        apprenticeship training organization' means any organization 
        which--
                    ``(A) is described in section 501(c)(3), is exempt 
                from tax under section 501(a), and is not a private 
                foundation, and
                    ``(B) is included on a list of providers prepared 
                under subsection (d) of section 122 of the Workforce 
                Innovation and Opportunity Act (29 U.S.C. 3152) by 
                reason of having been determined to be eligible to 
                offer a program under such section.
            ``(3) Workforce development or apprenticeship training 
        program.--The term `workforce development or apprenticeship 
        training program' means a program to provide training services 
        (within the meaning of section 134(c)(3) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3174(c)(3))).
    ``(d) Denial of Double Benefit.--Any qualified contribution for 
which a credit is allowed under this section shall not be taken into 
account as a charitable contribution for purposes of section 170.
    ``(e) Carryforward of Unused Credit.--
            ``(1) In general.--If the credit allowable under subsection 
        (a) for any taxable year exceeds the limitation imposed by 
        section 26(a) for such taxable year reduced by the sum of the 
        credits allowable under this subpart (other than this section 
        and sections 23, 25D, and 25E), such excess shall be carried to 
        the succeeding taxable year and added to the credit allowable 
        under subsection (a) for such taxable year.
            ``(2) Limitation.--No credit may be carried forward under 
        this subsection to any taxable year following the fifth taxable 
        year after the taxable year in which the credit arose. For 
        purposes of the preceding sentence, credits shall be treated as 
        used on a first-in first-out basis.''.
            (2) Conforming amendments.--
                    (A) Section 25(e)(1)(C) of such Code is amended by 
                striking ``and 25F'' and inserting ``25F, and 25G''.
                    (B) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                inserting after the item relating to section 25E the 
                following new item:

``Sec. 25G. Contributions to workforce development and apprenticeship 
                            training programs.''.
    (b) 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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