,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ddgc ,,in ,,the ,,house ,,of ,,representatives ,april #aj1 #bjad ,mr4 ,foster 7for himself1 ,ms4 ,tsongas1 ,mr4 ,owens1 ,mr4 ,enyart1 and ,mr4 ,crdenas7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to allow small employers a credit against income tax for the cost of on-the-job training expenses1 to make the research credit permanent1 and to increase the simplified research credit4 #a4 ,short title ,this ,act may be cited as the ,small ,business ,growth in ,manufacturing ,act of #bjad4 #b4 ,credit for on-the-job training 7a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,s4 ,on-the-job training credit 7a7 ,in general ,for the purposes of section #ch1 in the case of a small business employer1 the job training credit determined under this section for the taxable year is an amount equal to #ej percent of the qualified training expenses paid or incurred by the taxpayer during the taxable year4 7b7 ,limitations 7#a7 ,in general ,the credit allowed under subsection 7a7 with respect to any eligible trainee shall not exceed the excess 7if any7 of #e1jjj over the aggregate credit allowed to such taxpayer under this section with respect to such eligible trainee for all prior taxable years4 7#b7 #c-year limitation on expenses per trainee ,qualified training expenses may be taken into account under this section with respect to any eligible trainee only during the #c-year period beginning on the date that such expenses were first incurred by the taxpayer with respect to such trainee4 7c7 ,small business employer ,for purposes of this section-- 7#a7 ,in general ,the term small business employer means any employer if such employer employed an average of #ejj or fewer employees on business days during the most recent calendar year ending before the beginning of the taxable year4 ,for purposes of the preceding sentence1 a preceding calendar year may be taken into account only if the employer was in existence throughout such year4 7#b7 ,employers not in existence in preceding year ,in the case of an employer which was not in existence throughout the calendar year otherwise taken into account under paragraph 7#a71 the determination under paragraph 7#a7 shall be based on the average number of employees that it is reasonably expected such employer will employ on business days in the current calendar year4 7d7 ,definitions ,for purposes of this section-- 7#a7 ,qualified training expenses ,the term qualified training expenses means amounts paid or incurred to an unrelated party for-- 7,a7 the purchase or use of instructional materials and equipment used exclusively for the training of eligible trainees1 7,b7 the use of classroom or other space so used1 and 7,c7 teachers1 trainers1 and consultants engaged in carrying out such training program4 7#b7 ,eligible trainee ,the term eligible trainee means any employee of the taxpayer who performs services for the employer for at least #cj hours per week while receiving the training for which the qualified training expenses are incurred4 7e7 ,special rules 7#a7 ,denial of double benefit ,no deduction shall be allowed for that portion of the qualified training expenses 7otherwise allowable as a deduction for the taxable year7 which is equal to the amount of the credit determined for such taxable year under this section4 7#b7 ,aggregation ,for purposes of this section1 all persons treated as a single employer under subsection 7a7 or 7b7 or section #eb1 or subsection 7m7 or 7o7 of section #dad1 shall be treated as one person4 7f7 ,election ,to have credit not apply ,a taxpayer may elect 7at such time and in such manner as the ,secretary may by regulations prescribe7 to have this section not apply for any taxable year4 4 7b7 ,credit ,to be part of general business credit ,subsection 7b7 of section #ch of the ,internal ,revenue ,code of #aihf is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cg7 in the case of a small business employer 7as defined in section #de,s7c771 the job training credit determined under section #de,s7a74 4 7c7 ,credit allowed against alternative minimum tax ,section #ch7;c77#d77;,b7 of such ,code is amended by redesignating clauses 7vii71 7viii71 and 7ix7 as clauses 7viii71 7ix71 and 7x71 respectively1 and by inserting after clause 7vi7 the following new clause3 7vii7 the credit determined under section #de,s1 4 7d7 ,technical amendment ,section #feja7m7 of such ,code is amended by inserting #de,s7e71 after #de;,h7g714 7e7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de,s4 ,on-the-job training credit4 4 7f7 ,effective dates 7#a7 ,in general ,the amendments made by this section shall apply to expenses paid or incurred after the date of the enactment of this ,act1 in taxable years ending after such date4 7#b7 ,minimum tax ,the amendment made by subsection 7c7 shall apply to credits determined under section #de,s of the ,internal ,revenue ,code of #aihf in taxable years ending after the date of the enactment of this ,act1 and to carrybacks of such credits4 #c4 ,research credit made permanent2 increase in alternative simplified research credit 7a7 ,research credit made permanent 7#a7 ,in general ,section #da of the ,internal ,revenue ,code of #aihf is amended by striking subsection 7h74 7#b7 ,conforming amendments 7,a7 ,subsection 7c7 of section #da of such ,code is amended by striking paragraph 7#d74 7,b7 ,paragraph 7#a7 of section #de;,c7b7 of such ,code is amended by striking subparagraph 7,d74 7#c7 ,effective date ,the amendments made by this subsection shall apply to amounts paid or incurred after ,december #ca1 #bjac4 7b7 ,increase in alternative simplified research credit 7#a7 ,in general ,subparagraph 7,a7 of section #da7;c77#e7 of such ,code 7relating to election of alternative simplified credit7 is amended by striking #ad percent 7#ab percent in the case of taxable years ending before ,january #a1 #bjji7 and inserting #bj percent4 7#b7 ,effective date ,the amendment made by this subsection shall apply to taxable years ending after the date of the enactment of this ,act4