Federal

INVEST Act

Source: Congress.gov · 1,159 words in original text

What This Bill Does

This bill changes tax law to give employers a tax credit (a reduction in taxes owed) when they hire veterans to work in renewable energy. The bill amends the Internal Revenue Code to recognize certain veterans as part of a group eligible for the work opportunity tax credit, but only for wages paid while the veteran works in renewable energy fields.

Who It Affects

Employers who hire eligible veterans in renewable energy work. Veterans who meet specific education or certification requirements. The U.S. territories listed in the bill (American Samoa, Guam, Northern Mariana Islands, Puerto Rico, U.S. Virgin Islands).

Key Provisions

• Employers get a tax credit for wages paid to specified veterans, but only for work done in renewable energy fields (Sec. 2(a)) • A "specified veteran" must have either received a Department of Defense credential in renewable energy, advanced manufacturing, machining, welding or engineering, OR completed a vocational degree in renewable energy within one year of being hired, OR completed a LEED certification (a green building credential) with the United States Green Building Council (Sec. 2(a)) • Renewable energy includes resources that restore themselves over short periods without being used up, such as the sun, wind, moving water, organic plant and waste material, and the earth's heat (Sec. 2(a)) • For U.S. territories with mirror code tax systems (tax systems that follow federal tax law), the Treasury Secretary must pay those territories an amount equal to their lost tax revenue from this credit (Sec. 2(b)) • If a veteran receives the same tax benefit from a U.S. territory, the federal tax credit is reduced by that amount to prevent double benefits (Sec. 2(b))

What Changes

If this bill becomes law, employers who hire veterans with renewable energy training or credentials will receive a federal tax credit on wages paid for that work. Previously, these veterans were not treated as a separate eligible group for this particular tax credit. U.S. territories will receive compensation for tax revenue they lose because of this new credit.

Important Definitions

• Specified veteran: A veteran certified by a local designated agency who has one of three qualifications: a Department of Defense credential in renewable energy or related fields, a vocational degree in renewable energy completed within one year of hiring, or a LEED certification from the U.S. Green Building Council • Renewable energy: Resources that restore themselves over short periods of time and do not diminish, including the sun, wind, moving water, organic plant and waste material, and the earth's heat • Mirror code tax system: A territory's income tax system where residents' tax liability is determined by following U.S. federal income tax laws

Effective Date

This amendment applies to individuals who begin working for their employer after December 31, 2022.

I 118TH CONGRESS 1ST SESSION H. R. 1554 To amend the Internal Revenue Code of 1986 to provide the work opportunity tax credit with respect to the hiring of veterans in the field of renewable energy. IN THE HOUSE OF REPRESENTATIVES MARCH 10, 2023 Ms. LEE of California (for herself, Ms. CLARKE of New York, Mr. ESPAILLAT, Mr. THOMPSON of Mississippi, Ms. CROCKETT, and Ms. NORTON) intro- duced 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 the work opportunity tax credit with respect to the hiring of veterans in the field of renewable energy. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Incentives for our Na- 4 tion’s Veterans in Energy Sustainability Technologies 5 Act’’ or as the ‘‘INVEST Act’’. 6 VerDate Sep 11 2014 23:24 Mar 27, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1554.IH H1554 kjohnson on DSK79L0C42PROD with BILLS 2 •HR 1554 IH SEC. 2. WORK OPPORTUNITY TAX CREDIT FOR VETERANS 1 HIRED IN THE FIELD OF RENEWABLE EN- 2 ERGY. 3 (a) IN GENERAL.—Section 51(d)(14) of the Internal 4 Revenue Code of 1986 is amended to read as follows: 5 ‘‘(14) CERTAIN VETERANS HIRED IN THE 6 FIELD OF RENEWABLE ENERGY.— 7 ‘‘(A) IN GENERAL.—For purposes of this 8 subpart, an individual shall be treated as a 9 member of a targeted group if such individual 10 is a specified veteran, but qualified wages with 11 respect to such individual shall include only 12 wages attributable to services rendered in a 13 field of renewable energy. 14 ‘‘(B) SPECIFIED VETERAN.—For purposes 15 of this paragraph, the term ‘specified veteran’ 16 means any veteran (as defined in paragraph 17 (3)) who is certified by the designated local 18 agency as— 19 ‘‘(i) having received a credential or 20 certification from the Department of De- 21 fense of military occupational specialty or 22 skill in a field of renewable energy or with 23 respect to advanced manufacturing, ma- 24 chinist or welding, or engineering, 25 VerDate Sep 11 2014 23:24 Mar 27, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1554.IH H1554 kjohnson on DSK79L0C42PROD with BILLS 3 •HR 1554 IH ‘‘(ii) having completed a vocational 1 degree in a field of renewable energy dur- 2 ing the 1-year period ending on the hiring 3 date, or 4 ‘‘(iii) having completed a LEED cer- 5 tification with the United States Green 6 Building Council. 7 ‘‘(C) RENEWABLE ENERGY.—For purposes 8 of this paragraph, renewable energy means re- 9 sources that rely on fuel sources that restore 10 themselves over short periods of time and do 11 not diminish, including the Sun, wind, moving 12 water, organic plant and waste material, and 13 the Earth’s heat.’’. 14 (b) TREATMENT OF POSSESSIONS.— 15 (1) PAYMENTS TO POSSESSIONS.— 16 (A) MIRROR CODE POSSESSIONS.—The 17 Secretary of the Treasury shall pay to each pos- 18 session of the United States with a mirror code 19 tax system amounts equal to the loss to that 20 possession by reason of the amendment made 21 by this section. Such amounts shall be deter- 22 mined by the Secretary of the Treasury based 23 on information provided by the government of 24 the respective possession of the United States. 25 VerDate Sep 11 2014 23:24 Mar 27, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1554.IH H1554 kjohnson on DSK79L0C42PROD with BILLS 4 •HR 1554 IH (B) OTHER POSSESSIONS.—The Secretary 1 of the Treasury shall pay to each possession of 2 the United States which does not have a mirror 3 code tax system the amount estimated by the 4 Secretary of the Treasury as being equal to the 5 loss to that possession that would have occurred 6 by reason of the amendment made by this sec- 7 tion if a mirror code tax system had been in ef- 8 fect in such possession. The preceding sentence 9 shall not apply with respect to any possession 10 of the United States unless such possession es- 11 tablishes to the satisfaction of the Secretary 12 that the possession has implemented (or, at the 13 discretion of the Secretary, will implement) an 14 income tax benefit which is substantially equiv- 15 alent to the income tax credit in effect after the 16 amendments made by this section. 17 (2) COORDINATION WITH CREDIT ALLOWED 18 AGAINST UNITED STATES INCOME TAXES.—The 19 credit allowed against United States income taxes 20 for any taxable year under the amendment made by 21 this section to section 51 of the Internal Revenue 22 Code of 1986 to any person with respect to any 23 qualified veteran shall be reduced by the amount of 24 any credit (or other tax benefit described in para- 25 VerDate Sep 11 2014 23:24 Mar 27, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1554.IH H1554 kjohnson on DSK79L0C42PROD with BILLS 5 •HR 1554 IH graph (1)(B)) allowed to such person against income 1 taxes imposed by the possession of the United States 2 by reason of this subsection with respect to such 3 qualified veteran for such taxable year. 4 (3) DEFINITIONS AND SPECIAL RULES.— 5 (A) POSSESSION OF THE UNITED 6 STATES.—For purposes of this subsection, the 7 term ‘‘possession of the United States’’ includes 8 American Samoa, Guam, the Commonwealth of 9 the Northern Mariana Islands, the Common- 10 wealth of Puerto Rico, and the United States 11 Virgin Islands. 12 (B) MIRROR CODE TAX SYSTEM.—For pur- 13 poses of this subsection, the term ‘‘mirror code 14 tax system’’ means, with respect to any posses- 15 sion of the United States, the income tax sys- 16 tem of such possession if the income tax liabil- 17 ity of the residents of such possession under 18 such system is determined by reference to the 19 income tax laws of the United States as if such 20 possession were the United States. 21 (C) TREATMENT OF PAYMENTS.—For pur- 22 poses of section 1324(b)(2) of title 31, United 23 States Code, the payments under this sub- 24 section shall be treated in the same manner as 25 VerDate Sep 11 2014 23:24 Mar 27, 2023 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1554.IH H1554 kjohnson on DSK79L0C42PROD with BILLS 6 •HR 1554 IH a refund due from credit provisions described in 1 such section. 2 (c) EFFECTIVE DATE.—The amendment made by 3 this section shall apply to individuals who begin work for 4 the employer after December 31, 2022. 5 Æ VerDate Sep 11 2014 23:24 Mar 27, 2023 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H1554.IH H1554 kjohnson on DSK79L0C42PROD with BILLS

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