SKILL UP Act of 2020

I 116TH CONGRESS 2D SESSION H. R. 5869 To amend the Internal Revenue Code to provide business with a tax credit for investing in work-based learning for workers with low skill levels. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 12, 2020 Mr. HORSFORD (for himself and Mr. GUTHRIE) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code to provide business with a tax credit for investing in work-based learning for workers with low skill levels. 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 ‘‘Skill and Knowledge 4 Investments Leverage Leaders’ Untapped Potential Tax 5 Credit Act of 2020’’ or the ‘‘SKILL UP Act of 2020’’. 6 VerDate Sep 11 2014 00:44 Feb 19, 2020 Jkt 099200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H5869.IH H5869 pamtmann on DSKBC07HB2PROD with BILLS 2 •HR 5869 IH SEC. 2. WORK OPPORTUNITY TAX CREDIT FOR PARTICIPA- 1 TION IN QUALIFYING WORK-BASED LEARN- 2 ING PROGRAMS. 3 (a) IN GENERAL.—Paragraph (1) of section 51(d) of 4 the Internal Revenue Code of 1986 is amended by striking 5 ‘‘or’’ at the end of subparagraph (I), by striking the period 6 at the end of subparagraph (J) and inserting ‘‘, or’’, and 7 by inserting after subparagraph (J) the following: 8 ‘‘(K) a qualified work-based learning par- 9 ticipant.’’. 10 (b) WAGES PER YEAR TAKEN INTO ACCOUNT.— 11 Paragraph (3) of section 51(b) of such Code is amended 12 by inserting ‘‘or who is a qualified work-based learning 13 participant’’ after ‘‘subsection (d)(3)(A)(ii)(II)’’. 14 (c) QUALIFIED WORK-BASED LEARNING PARTICI- 15 PANT.—Section 51(d) of such Code is amended by adding 16 at the end the following: 17 ‘‘(16) QUALIFIED WORK-BASED LEARNING PAR- 18 TICIPANT.— 19 ‘‘(A) IN GENERAL.—The term ‘qualified 20 work-based learning participant’ means an indi- 21 vidual who— 22 ‘‘(i) is a member of one of the tar- 23 geted group referred to in subparagraphs 24 (A) through (J) of paragraph (1), and 25 VerDate Sep 11 2014 00:44 Feb 19, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5869.IH H5869 pamtmann on DSKBC07HB2PROD with BILLS 3 •HR 5869 IH ‘‘(ii) enrolled in a qualifying work- 1 based learning opportunity either— 2 ‘‘(I) within 3-month period begin- 3 ning on the hiring date, or 4 ‘‘(II) in the case of a program 5 described in subparagraph (B)(iii), 6 during the six-month period prior to 7 the hiring date. 8 ‘‘(B) QUALIFYING WORK-BASED LEARNING 9 OPPORTUNITY.—For the purpose of this para- 10 graph, the term ‘qualifying work-based learning 11 opportunity’ means— 12 ‘‘(i) an apprenticeship program reg- 13 istered under the Act of August 16, 1937 14 (commonly known as the National Appren- 15 ticeship Act; 50 Stat. 664, chapter 663; 29 16 U.S.C. 50 et seq.), 17 ‘‘(ii) a program that has been ap- 18 proved by the designated local agency and 19 that may be provided directly by an em- 20 ployer, or in partnership with one or more 21 training providers, in which— 22 ‘‘(I) the training is provided to 23 individuals who are full-time employ- 24 ees of the employer, 25 VerDate Sep 11 2014 00:44 Feb 19, 2020 Jkt 099200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5869.IH H5869 pamtmann on DSKBC07HB2PROD with BILLS 4 •HR 5869 IH ‘‘(II) training consists of on the 1 job instruction or a combination of on 2 the job and classroom instruction, and 3 ‘‘(III) successful completion of 4 the training program, or modules of 5 the training program— 6 ‘‘(aa) provides for an in- 7 crease in hourly wages for the 8 employee, and 9 ‘‘(bb) may provide for the 10 attainment of a recognized post- 11 secondary credential (as defined 12 under the Workforce Innovation 13 and Opportunity Act), and 14 ‘‘(iii) a program that has been ap- 15 proved by the designated local agency as 16 under clause (ii) in which a third party 17 serves as employer of record for purposes 18 of operating an approved program with the 19 participating employer.’’. 20 (d) CREDIT FOR TAX-EXEMPT EMPLOYERS FOR EM- 21 PLOYMENT OF QUALIFIED WORK-BASED LEARNING PAR- 22 TICIPANTS.— 23 (1) IN GENERAL.—Paragraph (1) of section 24 3111(e) of such Code is amended by inserting ‘‘or 25 VerDate Sep 11 2014 00:44 Feb 19, 2020 Jkt 099200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H5869.IH H5869 pamtmann on DSKBC07HB2PROD with BILLS 5 •HR 5869 IH qualified work-based learning participant’’ after 1 ‘‘qualified veteran’’ both places it appears. 2 (2) OVERALL LIMITATION.—Paragraph (2) of 3 section 3111(e) of such Code is amended by insert- 4 ing ‘‘or qualified work-based learning participants’’ 5 after ‘‘qualified veterans’’. 6 (3) APPLICABLE PERIOD.—Paragraph (4) of 7 section 3111(e) of such Code is amended by insert- 8 ing ‘‘or qualified work-based learning participant’’ 9 after ‘‘qualified veteran’’ both places it appears. 10 (4) DEFINITIONS.—Paragraph (5) of section 11 3111(e) of such Code is amended by striking ‘‘and’’ 12 at the end of subparagraph (A), by striking the pe- 13 riod at the end of subparagraph (B) and inserting 14 ‘‘, and’’, and by inserting after subparagraph (B) 15 the following: 16 ‘‘(C) the term ‘qualified work-based learn- 17 ing participant’ has the meaning given such 18 term by section 51(d)(16).’’. 19 (e) EFFECTIVE DATE.—The amendments made by 20 this section shall apply to wages paid after 90 days after 21 the date of the enactment of this Act, with respect to en- 22 rollment in qualifying work-based learning programs be- 23 ginning after such date. 24 Æ VerDate Sep 11 2014 00:44 Feb 19, 2020 Jkt 099200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H5869.IH H5869 pamtmann on DSKBC07HB2PROD with BILLS