“A bill to amend the Internal Revenue Code of 1986 to provide a credit for employer-provided worker training.”
No CRS summary available for this bill.
This section establishes a new general business tax credit (IRC §45BB) equal to 20% of qualified training expenditures for non-highly compensated employees (i.e., those with remuneration not exceeding 60% of the highly compensated employee threshold under IRC §414(q)(1)(B)(i)) exceeding the average adjusted qualified training expenditures for the prior three taxable years, or 10% of such expenditures if there were none in those years. Qualified training expenditures exclude amounts for meals, lodging, transportation, or incidental services and must fund training resulting in a recognized postsecondary credential (i.e., State-listed industry-recognized certificate or certification, apprenticeship completion certificate, State- or federally recognized license, or associate's or bachelor's degree) provided through (1) federally registered apprenticeships; (2) Workforce Innovation and Opportunity Act (WIOA)-listed training programs or State-approved apprenticeships; (3) area career and technical education schools (as defined in the Carl D. Perkins Career and Technical Education Act), community colleges participating in Higher Education Act title IV programs (i.e., junior or community colleges need not meet HEA eligible institution requirements under 20 U.S.C. 1058 other than being a junior or community college), or labor organizations; or (4) programs sponsored by employers, industry trade associations, industry or sector partnerships (as defined in WIOA), or labor organizations. Qualified small businesses and certain tax-exempt organizations may elect to apply the credit against payroll taxes under IRC §3111(g). Aggregation rules similar to IRC §41(f) apply.