,i #aafth ,,congress #ast ,session ,h4 ,r4 #dhdh ,,in ,,the ,,house ,,of ,,representatives ,october #bc1 #bjai,mr4 ,sires introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,education and ,labor1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to provide a credit for employer-provided job training1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,better ,education and ,skills ,training for ,america's ,workforce ,act4 #b4 ,job training tax credit 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,t4 ,job training credit 7a7 ,in general ,for the purposes of section #ch1 the job training credit determined under this section for the taxable year is an amount equal to #ajj percent of the qualified training expenses paid by the qualifying taxpayer during the taxable year4 7b7 ,limitation ,the credit allowed under subsection 7a7 with respect to any eligible trainee of the qualifying taxpayer shall not exceed the excess 7if any7 of #d1jjj over the aggregate credit allowed to such taxpayer under this section with respect to such eligible trainee for all prior taxable years4 7c7 ,definitions ,for purposes of this section-- 7#a7 ,qualified training expenses 7,a7 ,in general ,the term qualified training expenses means1 with respect to any eligible trainee of the qualifying taxpayer1 expenses paid or incurred by such taxpayer for qualified tuition costs of such eligible trainee4 7,b7 ,qualified tuition costs ,the term qualified tuition costs means costs for books and enrollment in a training program at a qualified educational organization1 the outcome of which1 if completed1 will provide the eligible trainee a certificate or credential recognized by a ,state accrediting body1 ,federal ,apprenticeship ,agency1 or any other national accrediting body recognized by the ,department of ,education as an independent1 third-party accrediting body4 ,such training program-- 7i7 may include a single course1 multiple courses1 or a combination of work training and study1 and 7ii7 must be reasonably necessary for employment with the qualifying taxpayer4 7,c7 ,qualified educational organization ,the term qualified educational organization means any institution of higher education described in section #aja of the ,higher ,education ,act of #aife4 7#b7 ,qualifying taxpayer ,the term qualifying taxpayer means any taxpayer who-- 7,a7 with respect to any eligible trainee1 is training and hiring individuals for positions based in the ,united ,states1 and 7,b7 provides1 with respect to any eligible trainee1 such documentation as required by the ,secretary regarding qualified training expenses and proof of unemployment status as described in paragraph 7#c77;,a74 7#c7 ,eligible trainee ,the term eligible trainee means any individual who-- 7,a7 has been unemployed for at least #ij days before the date of enrollment in a training program described in paragraph 7#a77;,b71 and 7,b7 had not been employed by the qualifying taxpayer at any time during the #b-year period preceding the date on which such trainee was hired4 7d7 ,special rules 7#a7 ,denial of double benefit ,no credit shall be allowed under subsection 7a7 for any qualified training expense for which a deduction or other credit is allowed to the taxpayer under any other provision of this chapter4 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 7e7 ,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 7f7 ,termination ,this section shall not apply to expenses paid after ,december #ca1 #bjcj4 4 7b7 ,credit ,to be part of general business credit ,section #ch7;b7 of such ,code is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cc7 the job training credit determined under section #de,t7a74 4 7c7 ,credit allowed against alternative minimum tax ,section #ch7;c77#d77;,b7 of such ,code is amended by redesignating clauses 7x71 7xi71 and 7xii7 as clauses 7xi71 7xii71 and 7xiii71 respectively1 and by inserting after clause 7ix7 the following new clause3 7x7 the credit determined under section #de,t1 4 7d7 ,technical amendment ,section #feja7m7 of the ,internal ,revenue ,code of #aihf is amended by inserting #de,t7e71 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,t4 ,job training credit4 4 7f7 ,report ,not later than ,january #a1 #bjbi1 the ,secretary of the ,treasury 7or the ,secretary's delegate7 shall report to the ,committee on ,ways and ,means of the ,house of ,representatives and the ,committee on ,finance of the ,senate on the economic impact of the job training credit under section #de,t of the ,internal ,revenue ,code of #aihf 7as added under subsection 7a774 7g7 ,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 amendments made by subsection 7c7 shall apply to credits determined under section #de,t 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 ,qualified ,job ,training ,partnership credit 7a7 ,in general ,subpart ,e of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #dh;,c the following new section3 #dh;,d4 ,qualified ,job ,training ,partnership credit 7a7 ,in general ,for purposes of section #df1 the ,qualified ,job ,training ,partnership credit for any taxable year is an amount equal to the percentage determined by the ,secretary 7not to exceed #ajj percent7 of the qualified investment for such taxable year with respect to any ,qualified ,job ,training ,partnership4 7b7 ,qualified investment 7#a7 ,in general ,for purposes of subsection 7a71 the qualified investment for any taxable year is the aggregate amount of the costs paid or incurred in such taxable year for expenses necessary for and directly related to the conduct of a ,qualified ,job ,training ,partnership in the form of contributions of cash1 cash equivalent1 equipment1 or any combination of the three where #ajj percent of the investment is used for the planning1 implementation1 or operation of a ,qualified ,job ,training ,partnership and the training financed through the investment must result in a type of certificate or credential recognized by a ,state accrediting body1 ,federal ,apprenticeship ,agency1 or any other national accrediting body recognized by the ,department of ,education as an independent1 third-party accrediting body4 7#b7 ,limitation ,the amount which is treated as qualified investment for all taxable years with respect to any ,qualified ,job ,training ,partnership shall not exceed the amount certified by the ,secretary as eligible for the credit under this section4 7#c7 ,exclusions ,the qualified investment for any taxable year with respect to any ,qualified ,job ,training ,partnership shall not take into account any cost for student tuition or for any other expense as determined by the ,secretary as appropriate to carry out the purposes of this section4 7#d7 ,certain progress expenditure rules made applicable ,in the case of costs described in paragraph 7#a7 that are paid for property of a character subject to an allowance for depreciation1 rules similar to the rules of subsections 7c77#d7 and 7d7 of section #df 7as in effect on the day before the date of the enactment of the ,revenue ,reconciliation ,act of #aiij7 shall apply for purposes of this section4 7c7 ,qualified ,job ,training ,partnership 7#a7 ,in general ,the term ,qualified ,job ,training ,partnership means a formal or informal partnership between at least #a eligible private business employer and-- 7,a7 #a qualified educational institution1 or 7,b7 #a labor organization 7as defined in section #b7e7 of the ,national ,labor ,relations ,act71 where the stated goal of the partnership is to train students in job-ready skills4 7#b7 ,eligible private business employer ,the term eligible private business employer means-- 7,a7 a business entity at least #ej percent of the gross income of which is derived from qualified production activities 7within the meaning of section #aii7;c7 7as in effect on ,december #ca1 #bjag771 or 7,b7 any type of domestic business entity the average number of employees of which for any taxable year is not more than #ejj employees4 7#c7 ,qualified educational organization ,the term qualified educational organization means any educational organization described in section #aja of the ,higher ,education ,act of #aife which provides a #b-year program that culminates in an associate degree4 7d7 ,qualified ,job ,training ,partnership program 7#a7 ,establishment 7,a7 ,in general ,not later than #fj days after the date of the enactment of this section1 the ,secretary1 in consultation with the ,secretary of ,labor1 shall establish a ,qualified ,job ,training ,partnership program to consider and award certifications for qualified investments eligible for credits under this section to ,qualified ,job ,training ,partnerships4 7,b7 ,limitation ,the total amount of credits that may be allocated under the program shall not exceed #a1jjj1jjj1jjj4 7#b7 ,certification 7,a7 ,application period ,each applicant for certification under this paragraph shall submit an application containing such information as the ,secretary may require during the period beginning on the date the ,secretary establishes the program under paragraph 7#a74 7,b7 ,time for review of applications ,the ,secretary shall take action to approve or deny any application under subparagraph 7,a7 within #cj days of the submission of such application4 7,c7 ,multi-year applications ,an application for certification under subparagraph 7,a7 may include a request for an allocation of credits for more than #a year4 7#c7 ,selection criteria ,in determining the ,qualified ,job ,training ,partnerships with respect to which qualified investments may be certified under this section1 the ,secretary-- 7,a7 shall give priority to those applications which demonstrate-- 7i7 the greatest probability that those who complete the program will secure employment1 7ii7 the greatest potential for providing workers who complete the program with skills that can provide long-term job and income security1 7iii7 the strongest market demand for the type of training offered1 7iv7 the greatest probability that the program would create a net increase in job training opportunities1 7v7 a strong need in the community for skills training1 7vi7 the ability to allow nontraditional learners to complete the training1 7vii7 the ability and capacity to implement the program in a reasonable period of time1 and 7viii7 the greatest ability to offer training programs that result in a certificate or credential 7within the meaning of subsection 7b77#a77 that is stackable or portable or both1 and 7,b7 shall take into additional consideration which applications show the ability to leverage additional sources of capital4 7#d7 ,disclosure of allocations ,the ,secretary shall1 upon making a certification under this subsection1 publicly disclose the identity of the applicant and the amount of the credit with respect to such applicant4 7e7 ,special rules 7#a7 ,basis adjustment ,for purposes of this subtitle1 if a credit is allowed under this section for an expenditure related to property of a character subject to an allowance for depreciation1 the basis of such property shall be reduced by the amount of such credit4 7#b7 ,denial of double benefit 7,a7 ,bonus depreciation ,a credit shall not be allowed under this section for any investment for which bonus depreciation is allowed under section #afh7k74 7,b7 ,deductions ,no deduction under this subtitle shall be allowed for the portion of the expenses otherwise allowable as a deduction taken into account in determining the credit under this section for the taxable year which is equal to the amount of the credit determined for such taxable year under subsection 7a7 attributable to such portion4 ,this subparagraph shall not apply to expenses related to property of a character subject to an allowance for depreciation the basis of which is reduced under paragraph 7#a71 or which are described in section #bhj;,c7g74 4 7b7 ,inclusion as part of investment credit ,section #df of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by striking and at the end of paragraph 7#e71 7#b7 by striking the period at the end of paragraph 7#f7 and inserting 1 and1 and 7#c7 by adding at the end the following new paragraph3 7#g7 the ,qualified ,job ,training ,partnership credit4 4 7c7 ,conforming amendments 7#a7 ,section #di7;a77#a77;,c7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7iv71 by striking the period at the end of clause 7v7 and inserting 1 and1 and by adding at the end the following new clause3 7vi7 the basis of any property to which section #dh;,d7e77#a7 applies which is part of a ,qualified ,job ,training ,partnership under such section #dh;,d4 4 7#b7 ,section #bhj;,c of such ,code is amended by adding at the end the following new subsection3 7i7 ,qualified ,job ,training ,partnership credit 7#a7 ,in general ,no deduction shall be allowed for that portion of the qualified investment 7as defined in section #dh;,d7b77 otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section #dh;,d7a71 reduced by-- 7,a7 the amount disallowed as a deduction by reason of section #dh;,d7e77#b77;,b71 and 7,b7 the amount of any basis reduction under section #dh;,d7e77#a74 7#b7 ,similar rule where taxpayer capitalizes rather than deducts expenses ,in the case of expenses described in paragraph 7#a77;,a7 taken into account in determining the credit under section #dh;,d for the taxable year1 if-- 7,a7 the amount of the portion of the credit determined under such section with respect to such expenses1 exceeds 7,b7 the amount allowable as a deduction for such taxable year for such expenses 7determined without regard to paragraph 7#a771 the amount chargeable to capital account for the taxable year for such expenses shall be reduced by the amount of such excess4 7#c7 ,controlled groups ,paragraph 7#c7 of subsection 7b7 shall apply for purposes of this subsection4 4 7d7 ,clerical amendment ,the table of sections for subpart ,e of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #dh;,c the following new item3 ,sec4 #dh;,d4 ,qualified ,job ,training ,partnership credit4 4 7e7 ,grants for qualified investments in ,qualified ,job ,training ,partnerships in lieu of tax credits 7#a7 ,in general ,upon application1 the ,secretary of the ,treasury shall1 subject to the requirements of this subsection1 provide a grant to each person who makes a qualified investment in a ,qualified ,job ,training ,partnership in an amount not to exceed #ajj percent of such investment4 7#b7 ,application 7,a7 ,in general ,at the stated election of the applicant1 an application for certification under section #dh;,d7d77#b7 of the ,internal ,revenue ,code of #aihf for a credit under such section for any taxable year shall be considered to be an application for a grant under paragraph 7#a7 for such taxable year4 7,b7 ,submission date ,an application for a grant under paragraph 7#a7 for any taxable year shall be submitted-- 7i7 not earlier than the day after the last day of such taxable year1 and 7ii7 not later than the due date 7including extensions7 for filing the return of tax for such taxable year4 7,c7 ,information to be submitted ,an application for a grant under paragraph 7#a7 shall include such information and be in such form as the ,secretary of the ,treasury may require to state the amount of the credit allowable 7but for the receipt of a grant under this subsection7 under section #dh;,d for the taxable year for the qualified investment with respect to which such application is made4 7#c7 ,time for payment of grant 7,a7 ,in general ,the ,secretary of the ,treasury shall make payment of the amount of any grant under paragraph 7#a7 during the #cj-;day period beginning on the later of-- 7i7 the date of the application for such grant1 or 7ii7 the date the qualified investment for which the grant is being made is made4 7,b7 ,regulations ,in the case of investments of an ongoing nature1 the ,secretary of the ,treasury shall issue regulations to determine the date on which a qualified investment shall be deemed to have been made for purposes of this paragraph4 7#d7 ,qualified investment ,for purposes of this subsection1 the term qualified investment means a qualified investment that is certified under section #dh;,d7d7 of the ,internal ,revenue ,code of #aihf for purposes of the credit under such section #dh;,d4 7#e7 ,application of certain rules 7,a7 ,in general ,in making grants under this subsection1 the ,secretary of the ,treasury shall apply rules similar to the rules of section #ej of the ,internal ,revenue ,code of #aihf4 ,in applying such rules1 any increase in tax under chapter #a of such ,code by reason of an investment ceasing to be a qualified investment shall be imposed on the person to whom the grant was made4 7,b7 ,special rules 7i7 ,recapture of excessive grant amounts ,if the amount of a grant made under this subsection exceeds the amount allowable as a grant under this subsection1 such excess shall be recaptured under subparagraph 7,a7 as if the investment to which such excess portion of the grant relates had ceased to be a qualified investment immediately after such grant was made4 7ii7 ,grant information not treated as return information ,in no event shall the amount of a grant made under paragraph 7#a71 the identity of the person to whom such grant was made1 or a description of the investment with respect to which such grant was made be treated as return information for purposes of section #fajc of the ,internal ,revenue ,code of #aihf4 7#f7 ,secretary ,any reference in this subsection to the ,secretary of the ,treasury shall be treated as including the ,secretary's delegate4 7#g7 ,other terms ,any term used in this subsection which is also used in section #dh;,d of the ,internal ,revenue ,code of #aihf shall have the same meaning for purposes of this subsection as when used in such section4 7#h7 ,denial of double benefit ,no credit shall be allowed under section #df7g7 of the ,internal ,revenue ,code of #aihf by reason of section #dh;,d of such ,code for any investment for which a grant is awarded under this subsection4 7#i7 ,appropriations ,there is hereby appropriated to the ,secretary of the ,treasury such sums as may be necessary to carry out this subsection4 7f7 ,effective date ,the amendments made by subsections 7a7 through 7d7 of this section shall apply to amounts paid or incurred after the date of the enactment of this ,act1 in taxable years beginning after such date4