[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6752 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 6752
To amend the Internal Revenue Code of 1986 to provide a credit for
employer-provided worker training.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
December 16, 2025
Mr. Krishnamoorthi introduced the following bill; which was referred to
the Committee on Ways and Means, and in addition to the Committee on
Education and Workforce, 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 worker 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 ``Investing in American Workers Act''.
SEC. 2. EMPLOYER-PROVIDED WORKER TRAINING CREDIT.
(a) In General.--
(1) Determination of credit.--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 EMPLOYER-PROVIDED WORKER TRAINING CREDIT.
``(a) In General.--For purposes of section 38, the employer-
provided worker training credit under this section for the taxable year
is an amount equal to 20 percent of the excess (if any) of--
``(1) the qualified training expenditures for the taxable
year, over
``(2) the average of the adjusted qualified training
expenditures for the 3 taxable years preceding the taxable year
for which the credit is being determined.
``(b) Qualified Training Expenditures.--For purposes of this
section--
``(1) In general.--The term `qualified training
expenditures' means any expenditures for the qualified training
of any non-highly compensated employee. Such term shall not
include any amounts paid for meals, lodging, transportation, or
other services incidental to such qualified training.
``(2) Qualified training.--
``(A) In general.--For purposes of paragraph (1),
the term `qualified training' means training which
results in the attainment of a recognized postsecondary
credential and which is provided through--
``(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)(I) a program of training services
which is listed under section 122(d) of the
Workforce Innovation and Opportunity Act (29
U.S.C. 3152(d)), or
``(II) an apprenticeship program which is
registered or approved by a recognized State
apprenticeship agency (which uses a State
apprenticeship council) in accordance with the
first section of the Act referred to in clause
(i),
``(iii) a program which is conducted by an
area career and technical education school, a
community college, or a labor organization, or
``(iv) a program which is sponsored and
administered by an employer, industry trade
association, industry or sector partnership, or
labor organization.
``(B) Related definitions.--In subparagraph (A):
``(i) Area career and technical education
school.--The term `area career and technical
education school' means such a school, as
defined in section 3 of the Carl D. Perkins
Career and Technical Education Act of 2006 (20
U.S.C. 2302), which participates in a program
under that Act (20 U.S.C. 2301 et seq.).
``(ii) Community college.--The term
`community college' means an institution
which--
``(I) is a junior or community
college as defined in section 312(f) of
the Higher Education Act of 1965 (20
U.S.C. 1058(f)), except that the
institution need not meet the
requirements of paragraph (1) of that
section, and
``(II) participates in a program
under title IV of that Act (20 U.S.C.
1070 et seq.).
``(iii) Industry or sector partnership.--
The term `industry or sector partnership' has
the meaning given such term under section 3 of
the Workforce Innovation and Opportunity Act
(29 U.S.C. 3102).
``(iv) Industry trade association.--The
term `industry trade association' means an
organization which--
``(I) is described in paragraph (3)
or (6) of section 501(c) and exempt
from taxation under section 501(a), and
``(II) is representing an industry.
``(v) Labor organization.--The term `labor
organization' means a labor organization,
within the meaning of the term in section
501(c)(5).
``(vi) Recognized postsecondary
credential.--The term `recognized postsecondary
credential' means a credential that is listed
under section 122(d) of the Workforce
Innovation and Opportunity Act (29 U.S.C.
3152(d)) for the State involved and consists of
an industry-recognized certificate or
certification, a certificate of completion of
an apprenticeship, a license recognized by the
State involved or Federal Government, or an
associate or baccalaureate degree.
``(3) Non-highly compensated employee.--For purposes of
paragraph (1), the term `non-highly compensated employee' means
an employee of the taxpayer whose remuneration for the taxable
year for services provided to the taxpayer does not exceed 60
percent of the amount applicable for such taxable year under
clause (i) of section 414(q)(1)(B).
``(c) Adjusted Qualified Training Expenditures.--For purposes of
this section, the term `adjusted qualified training expenses' means,
with respect to any taxable year--
``(1) the qualified training expenditures for such taxable
year, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which the taxable year
for which the credit is being determined begins, except that
section 1(f)(3)(A)(ii) shall be applied by using the CPI for
the calendar year in which the taxable year in which qualified
training expenses were paid or incurred begins in lieu of the
CPI for calendar year 2016.
``(d) Special Rules.--For purposes of this section--
``(1) Special rule in case of no qualified training
expenditures in any of 3 preceding taxable years.--
``(A) Taxpayers to which paragraph applies.--The
credit under this section shall be determined under
this paragraph if the taxpayer has no qualified
training expenditures in any one of the 3 taxable years
preceding the taxable year for which the credit is
being determined.
``(B) Credit rate.--The credit determined under
this paragraph shall be equal to 10 percent of the
qualified training expenditures for the taxable year.
``(2) Aggregation and allocation of expenditures, etc.--
Rules similar to the rules of paragraphs (1), (2), (3), (4),
and (5) of section 41(f) shall apply.
``(e) Election To Apply Credit Against Payroll Taxes.--
``(1) In general.--At the election of a qualified small
business or a qualified tax-exempt organization (as defined in
section 3111(e)(5)(A)) for any taxable year, section 3111(g)
shall apply to the payroll tax credit portion of the credit
otherwise determined under subsection (a) for the taxable year
and such portion shall not be treated (other than for purposes
of section 280C) as a credit determined under subsection (a).
``(2) Payroll tax credit portion.--For purposes of this
subsection, the payroll tax credit portion of the credit
determined under subsection (a) with respect to any qualified
small business or qualified tax-exempt organization for any
taxable year is the least of--
``(A) the amount specified in the election made
under this subsection,
``(B) the credit determined under subsection (a)
for the taxable year (determined before the application
of this subsection), or
``(C) in the case of a qualified small business
other than a partnership or S corporation, the amount
of the business credit carryforward under section 39
carried from the taxable year (determined before the
application of this subsection to the taxable year).
``(3) Qualified small business.--For purposes of this
subsection--
``(A) In general.--The term `qualified small
business' means, with respect to any taxable year--
``(i) a corporation or partnership if the
gross receipts (as determined under the rules
of section 448(c)(3), without regard to
subparagraph (A) thereof) of such entity for
the taxable year is less than $5,000,000, and
``(ii) any person (other than a corporation
or partnership) who meets the requirements of
clause (i), determined--
``(I) by substituting `person' for
`entity', and
``(II) by only taking into account
the aggregate gross receipts received
by such person in carrying on all
trades or businesses of such person.
``(B) Limitation.--Such term shall not include an
organization which is exempt from taxation under
section 501.
``(4) Election.--
``(A) In general.--Any election under this
subsection for any taxable year--
``(i) shall specify the amount of the
credit to which such election applies,
``(ii) shall be made on or before the due
date (including extensions) of--
``(I) in the case of a partnership,
the return required to be filed under
section 6031,
``(II) in the case of an S
corporation, the return required to be
filed under section 6037, and
``(III) in the case of any other
qualified small business or qualified
tax-exempt organization, the return of
tax for the taxable year, and
``(iii) may be revoked only with the
consent of the Secretary.
``(B) Limitation.--The amount specified in any
election made under this subsection shall not exceed
$250,000.
``(C) Special rule for partnerships and s
corporations.--In the case of a partnership or S
corporation, the election made under this subsection
shall be made at the entity level.
``(5) Aggregation rules.--
``(A) In general.--Except as provided in
subparagraph (B)--
``(i) all members of the same controlled
group of corporations shall be treated as a
single taxpayer, and
``(ii) all trades or businesses (whether or
not incorporated) which are under common
control shall be treated as a single taxpayer.
``(B) Special rules.--For purposes of this
subsection and section 3111(g)--
``(i) each of the persons treated as a
single taxpayer under subparagraph (A) may
separately make the election under paragraph
(1) for any taxable year, and
``(ii) the $250,000 amount under paragraph
(3)(B) shall be allocated among all persons
treated as a single taxpayer under subparagraph
(A) in the manner provided by the Secretary
which is similar to the manner provided under
section 41(f)(1).
``(6) Regulations.--The Secretary shall prescribe such
regulations as may be necessary to carry out the purposes of
this subsection, including--
``(A) regulations to prevent the avoidance of the
purposes of the limitations and aggregation rules under
this subsection,
``(B) regulations to minimize compliance and
recordkeeping burdens under this subsection,
``(C) regulations for recapturing the benefit of
credits determined under section 3111(g) in cases where
there is a recapture or a subsequent adjustment to the
payroll tax credit portion of the credit determined
under subsection (a), including requiring amended
income tax returns in the cases where there is such an
adjustment, and
``(D) regulations to require the collection and
reporting of demographic information with respect to
the race, ethnicity, and gender of the individuals with
respect to whom a taxpayer makes qualified training
expenditures for which a credit is allowed under this
section.''.
(2) Credit part of general business credit.--Section 38(b)
of the Internal Revenue Code of 1986 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-provided worker training credit
determined under section 45BB(a).''.
(3) Coordination with deductions.--Section 280C of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new subsection:
``(i) Employer-Provided Worker Training Credit.--No deduction shall
be allowed for that portion of the expenses otherwise allowable as a
deduction taken into account in determining the credit under section
45BB for the taxable year which is equal to the amount of the credit
determined for such taxable year under section 45BB(a).''.
(4) Clerical amendment.--The table of sections for 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 item:
``Sec. 45BB. Employer-provided worker training credit.''.
(b) Credit Allowed Against Alternative Minimum Tax.--Subparagraph
(B) of section 38(c)(4) of the Internal Revenue Code of 1986 is
amended--
(1) by redesignating clauses (x), (xi), and (xii) as
clauses (xi), (xii), and (xiii), respectively, and
(2) by inserting after clause (ix) the following new
clause:
``(x) the credit determined under section
45BB with respect to an eligible small business
(as defined in paragraph (5)(C), after
application of rules similar to the rules of
paragraph (5)(D)),''.
(c) Payroll Tax Credit.--Section 3111 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new subsection:
``(g) Credit for Worker Training Expenses.--
``(1) In general.--In the case of a taxpayer who has made
an election under section 45BB(e) for a taxable year, there
shall be allowed as a credit against the tax imposed by
subsection (a) for the first calendar quarter which begins
after the date on which the taxpayer files the return specified
in section 45BB(e)(4)(A)(ii) an amount equal to the payroll tax
credit portion determined under section 45BB(e)(2).
``(2) Limitation.--The credit allowed by paragraph (1)
shall not exceed the tax imposed by subsection (a) for any
calendar quarter on the wages paid with respect to the
employment of all individuals in the employ of the employer.
``(3) Carryover of unused credit.--If the amount of the
credit under paragraph (1) exceeds the limitation of paragraph
(2) for any calendar quarter, such excess shall be carried to
the succeeding calendar quarter and allowed as a credit under
paragraph (1) for such quarter.
``(4) Deduction allowed for credited amounts.--The credit
allowed under paragraph (1) shall not be taken into account for
purposes of determining the amount of any deduction allowed
under chapter 1 for taxes imposed under subsection (a).''.
(d) Simplified Filing for Certain Small Businesses.--The Secretary
of the Treasury, in consultation with the Administrator of the Small
Business Administration, shall provide for a method of filing returns
of tax and information returns required under the Internal Revenue Code
of 1986 in a simplified format, to the extent possible, for employers
with less than $5,000,000 in annual gross receipts (as determined under
guidance provided by the Secretary).
(e) Regulations Relating to Postsecondary Credentials.--Not later
than 1 year after the date of the enactment of this Act, the Secretary
of Labor, in consultation with the Secretary of the Treasury, shall
issue regulations or other guidance applying the definition of the term
``recognized postsecondary credential'' as provided in section 3 of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3102).
(f) 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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