Better Education and Skills Training for America’s Workforce Act

I 116TH CONGRESS 1ST SESSION H. R. 4848 To amend the Internal Revenue Code of 1986 to provide a credit for employer-provided job training, and for other purposes. IN THE HOUSE OF REPRESENTATIVES OCTOBER 23, 2019 Mr. SIRES introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdic- tion of the committee concerned A BILL To amend the Internal Revenue Code of 1986 to provide a credit for employer-provided job training, and for other purposes. 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 ‘‘Better Education and 4 Skills Training for America’s Workforce Act’’. 5 SEC. 2. JOB TRAINING TAX CREDIT. 6 (a) IN GENERAL.—Subpart D of part IV of sub- 7 chapter A of chapter 1 of the Internal Revenue Code of 8 VerDate Sep 11 2014 02:14 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 4848 IH 1986 is amended by adding at the end the following new 1 section: 2 ‘‘SEC. 45T. JOB TRAINING CREDIT. 3 ‘‘(a) IN GENERAL.—For the purposes of section 38, 4 the job training credit determined under this section for 5 the taxable year is an amount equal to 100 percent of the 6 qualified training expenses paid by the qualifying taxpayer 7 during the taxable year. 8 ‘‘(b) LIMITATION.—The credit allowed under sub- 9 section (a) with respect to any eligible trainee of the quali- 10 fying taxpayer shall not exceed the excess (if any) of 11 $4,000 over the aggregate credit allowed to such taxpayer 12 under this section with respect to such eligible trainee for 13 all prior taxable years. 14 ‘‘(c) DEFINITIONS.—For purposes of this section— 15 ‘‘(1) QUALIFIED TRAINING EXPENSES.— 16 ‘‘(A) IN GENERAL.—The term ‘qualified 17 training expenses’ means, with respect to any 18 eligible trainee of the qualifying taxpayer, ex- 19 penses paid or incurred by such taxpayer for 20 qualified tuition costs of such eligible trainee. 21 ‘‘(B) QUALIFIED TUITION COSTS.—The 22 term ‘qualified tuition costs’ means costs for 23 books and enrollment in a training program at 24 a qualified educational organization, the out- 25 VerDate Sep 11 2014 02:14 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 4848 IH come of which, if completed, will provide the eli- 1 gible trainee a certificate or credential recog- 2 nized by a State accrediting body, Federal Ap- 3 prenticeship Agency, or any other national ac- 4 crediting body recognized by the Department of 5 Education as an independent, third-party ac- 6 crediting body. Such training program— 7 ‘‘(i) may include a single course, mul- 8 tiple courses, or a combination of work 9 training and study, and 10 ‘‘(ii) must be reasonably necessary for 11 employment with the qualifying taxpayer. 12 ‘‘(C) QUALIFIED EDUCATIONAL ORGANIZA- 13 TION.—The term ‘qualified educational organi- 14 zation’ means any institution of higher edu- 15 cation described in section 101 of the Higher 16 Education Act of 1965. 17 ‘‘(2) QUALIFYING TAXPAYER.—The term ‘quali- 18 fying taxpayer’ means any taxpayer who— 19 ‘‘(A) with respect to any eligible trainee, is 20 training and hiring individuals for positions 21 based in the United States, and 22 ‘‘(B) provides, with respect to any eligible 23 trainee, such documentation as required by the 24 Secretary regarding qualified training expenses 25 VerDate Sep 11 2014 02:14 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 4848 IH and proof of unemployment status as described 1 in paragraph (3)(A). 2 ‘‘(3) ELIGIBLE TRAINEE.—The term ‘eligible 3 trainee’ means any individual who— 4 ‘‘(A) has been unemployed for at least 90 5 days before the date of enrollment in a training 6 program described in paragraph (1)(B), and 7 ‘‘(B) had not been employed by the quali- 8 fying taxpayer at any time during the 2-year 9 period preceding the date on which such trainee 10 was hired. 11 ‘‘(d) SPECIAL RULES.— 12 ‘‘(1) DENIAL OF DOUBLE BENEFIT.—No credit 13 shall be allowed under subsection (a) for any quali- 14 fied training expense for which a deduction or other 15 credit is allowed to the taxpayer under any other 16 provision of this chapter. 17 ‘‘(2) AGGREGATION.—For purposes of this sec- 18 tion, all persons treated as a single employer under 19 subsection (a) or (b) or section 52, or subsection (m) 20 or (o) of section 414, shall be treated as one person. 21 ‘‘(e) ELECTION TO HAVE CREDIT NOT APPLY.—A 22 taxpayer may elect (at such time and in such manner as 23 the Secretary may by regulations prescribe) to have this 24 section not apply for any taxable year. 25 VerDate Sep 11 2014 02:14 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 4848 IH ‘‘(f) TERMINATION.—This section shall not apply to 1 expenses paid after December 31, 2030.’’. 2 (b) CREDIT TO BE PART OF GENERAL BUSINESS 3 CREDIT.—Section 38(b) of such Code is amended by strik- 4 ing ‘‘plus’’ at the end of paragraph (31), by striking the 5 period at the end of paragraph (32) and inserting ‘‘, plus’’, 6 and by adding at the end the following new paragraph: 7 ‘‘(33) the job training credit determined under 8 section 45T(a).’’. 9 (c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN- 10 IMUM TAX.—Section 38(c)(4)(B) of such Code is amended 11 by redesignating clauses (x), (xi), and (xii) as clauses (xi), 12 (xii), and (xiii), respectively, and by inserting after clause 13 (ix) the following new clause: 14 ‘‘(x) the credit determined under sec- 15 tion 45T,’’. 16 (d) TECHNICAL AMENDMENT.—Section 6501(m) of 17 the Internal Revenue Code of 1986 is amended by insert- 18 ing ‘‘45T(e),’’ after ‘‘45H(g),’’. 19 (e) CLERICAL AMENDMENT.—The table of sections 20 for subpart D of part IV of subchapter A of chapter 1 21 of such Code is amended by adding at the end the fol- 22 lowing new item: 23 ‘‘Sec. 45T. Job training credit.’’. (f) REPORT.—Not later than January 1, 2029, the 24 Secretary of the Treasury (or the Secretary’s delegate) 25 VerDate Sep 11 2014 02:14 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848 pamtmann on DSKBC07HB2PROD with BILLS 6 •HR 4848 IH shall report to the Committee on Ways and Means of the 1 House of Representatives and the Committee on Finance 2 of the Senate on the economic impact of the job training 3 credit under section 45T of the Internal Revenue Code 4 of 1986 (as added under subsection (a)). 5 (g) EFFECTIVE DATES.— 6 (1) IN GENERAL.—The amendments made by 7 this section shall apply to expenses paid or incurred 8 after the date of the enactment of this Act, in tax- 9 able years ending after such date. 10 (2) MINIMUM TAX.—The amendments made by 11 subsection (c) shall apply to credits determined 12 under section 45T of the Internal Revenue Code of 13 1986 in taxable years ending after the date of the 14 enactment of this Act, and to carrybacks of such 15 credits. 16 SEC. 3. QUALIFIED JOB TRAINING PARTNERSHIP CREDIT. 17 (a) IN GENERAL.—Subpart E of part IV of sub- 18 chapter A of chapter 1 of the Internal Revenue Code of 19 1986 is amended by inserting after section 48C the fol- 20 lowing new section: 21 ‘‘SEC. 48D. QUALIFIED JOB TRAINING PARTNERSHIP CRED- 22 IT. 23 ‘‘(a) IN GENERAL.—For purposes of section 46, the 24 Qualified Job Training Partnership credit for any taxable 25 VerDate Sep 11 2014 21:05 Nov 05, 2019 Jkt 099200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848 pamtmann on DSKBC07HB2PROD with BILLS 7 •HR 4848 IH year is an amount equal to the percentage determined by 1 the Secretary (not to exceed 100 percent) of the qualified 2 investment for such taxable year with respect to any 3 Qualified Job Training Partnership. 4 ‘‘(b) QUALIFIED INVESTMENT.— 5 ‘‘(1) IN GENERAL.—For purposes of subsection 6 (a), the qualified investment for any taxable year is 7 the aggregate amount of the costs paid or incurred 8 in such taxable year for expenses necessary for and 9 directly related to the conduct of a Qualified Job 10 Training Partnership in the form of contributions of 11 cash, cash equivalent, equipment, or any combina- 12 tion of the three where 100 percent of the invest- 13 ment is used for the planning, implementation, or 14 operation of a Qualified Job Training Partnership 15 and the training financed through the investment 16 must result in a type of certificate or credential rec- 17 ognized by a State accrediting body, Federal Ap- 18 prenticeship Agency, or any other national accred- 19 iting body recognized by the Department of Edu- 20 cation as an independent, third-party accrediting 21 body. 22 ‘‘(2) LIMITATION.—The amount which is treat- 23 ed as qualified investment for all taxable years with 24 respect to any Qualified Job Training Partnership 25 VerDate Sep 11 2014 02:14 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848 pamtmann on DSKBC07HB2PROD with BILLS 8 •HR 4848 IH shall not exceed the amount certified by the Sec- 1 retary as eligible for the credit under this section. 2 ‘‘(3) EXCLUSIONS.—The qualified investment 3 for any taxable year with respect to any Qualified 4 Job Training Partnership shall not take into account 5 any cost for student tuition or for any other expense 6 as determined by the Secretary as appropriate to 7 carry out the purposes of this section. 8 ‘‘(4) CERTAIN PROGRESS EXPENDITURE RULES 9 MADE APPLICABLE.—In the case of costs described 10 in paragraph (1) that are paid for property of a 11 character subject to an allowance for depreciation, 12 rules similar to the rules of subsections (c)(4) and 13 (d) of section 46 (as in effect on the day before the 14 date of the enactment of the Revenue Reconciliation 15 Act of 1990) shall apply for purposes of this section. 16 ‘‘(c) QUALIFIED JOB TRAINING PARTNERSHIP.— 17 ‘‘(1) IN GENERAL.—The term ‘Qualified Job 18 Training Partnership’ means a formal or informal 19 partnership between at least 1 eligible private busi- 20 ness employer and— 21 ‘‘(A) 1 qualified educational institution, or 22 ‘‘(B) 1 labor organization (as defined in 23 section 2(5) of the National Labor Relations 24 Act), 25 VerDate Sep 11 2014 02:14 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848 pamtmann on DSKBC07HB2PROD with BILLS 9 •HR 4848 IH where the stated goal of the partnership is to train 1 students in job-ready skills. 2 ‘‘(2) ELIGIBLE PRIVATE BUSINESS EM- 3 PLOYER.—The term ‘eligible private business em- 4 ployer’ means— 5 ‘‘(A) a business entity at least 50 percent 6 of the gross income of which is derived from 7 qualified production activities (within the mean- 8 ing of section 199(c) (as in effect on December 9 31, 2017)), or 10 ‘‘(B) any type of domestic business entity 11 the average number of employees of which for 12 any taxable year is not more than 500 employ- 13 ees. 14 ‘‘(3) QUALIFIED EDUCATIONAL ORGANIZA- 15 TION.—The term ‘qualified educational organization’ 16 means any educational organization described in sec- 17 tion 101 of the Higher Education Act of 1965 which 18 provides a 2-year program that culminates in an as- 19 sociate degree. 20 ‘‘(d) QUALIFIED JOB TRAINING PARTNERSHIP PRO- 21 GRAM.— 22 ‘‘(1) ESTABLISHMENT.— 23 ‘‘(A) IN GENERAL.—Not later than 60 24 days after the date of the enactment of this sec- 25 VerDate Sep 11 2014 02:14 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848 pamtmann on DSKBC07HB2PROD with BILLS 10 •HR 4848 IH tion, the Secretary, in consultation with the 1 Secretary of Labor, shall establish a Qualified 2 Job Training Partnership program to consider 3 and award certifications for qualified invest- 4 ments eligible for credits under this section to 5 Qualified Job Training Partnerships. 6 ‘‘(B) LIMITATION.—The total amount of 7 credits that may be allocated under the pro- 8 gram shall not exceed $1,000,000,000. 9 ‘‘(2) CERTIFICATION.— 10 ‘‘(A) APPLICATION PERIOD.—Each appli- 11 cant for certification under this paragraph shall 12 submit an application containing such informa- 13 tion as the Secretary may require during the 14 period beginning on the date the Secretary es- 15 tablishes the program under paragraph (1). 16 ‘‘(B) TIME FOR REVIEW OF APPLICA- 17 TIONS.—The Secretary shall take action to ap- 18 prove or deny any application under subpara- 19 graph (A) within 30 days of the submission of 20 such application. 21 ‘‘(C) MULTI-YEAR APPLICATIONS.—An ap- 22 plication for certification under subparagraph 23 (A) may include a request for an allocation of 24 credits for more than 1 year. 25 VerDate Sep 11 2014 02:14 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848 pamtmann on DSKBC07HB2PROD with BILLS 11 •HR 4848 IH ‘‘(3) SELECTION CRITERIA.—In determining 1 the Qualified Job Training Partnerships with re- 2 spect to which qualified investments may be certified 3 under this section, the Secretary— 4 ‘‘(A) shall give priority to those applica- 5 tions which demonstrate— 6 ‘‘(i) the greatest probability that those 7 who complete the program will secure em- 8 ployment, 9 ‘‘(ii) the greatest potential for pro- 10 viding workers who complete the program 11 with skills that can provide long-term job 12 and income security, 13 ‘‘(iii) the strongest market demand 14 for the type of training offered, 15 ‘‘(iv) the greatest probability that the 16 program would create a net increase in job 17 training opportunities, 18 ‘‘(v) a strong need in the community 19 for skills training, 20 ‘‘(vi) the ability to allow nontradi- 21 tional learners to complete the training, 22 ‘‘(vii) the ability and capacity to im- 23 plement the program in a reasonable pe- 24 riod of time, and 25 VerDate Sep 11 2014 02:14 Oct 30, 2019 Jkt 099200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H4848.IH H4848 pamtmann on DSKBC07HB2PROD with BILLS 12 •HR 4848 IH ‘‘(viii) the greatest ability to offer 1 training programs that result in a certifi- 2 cate or credential (within the meaning of 3 subsection (b)(1)) that is stackable or port- 4 able or both, and 5 ‘‘(B) shall take into additional consider- 6 ation which applications show the ability to le- 7 verage additional sources of capital. 8 ‘‘(4) DISCLOSURE OF ALLOCATIONS.—The Sec- 9 retary shall, upon making a certification under this 10 subsection, publ [Text truncated for display. 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