,i #aafth ,,congress #ast ,session ,h4 ,r4 #ejab ,,in ,,the ,,house ,,of ,,representatives ,november #h1 #bjai,mr4 ,krishnamoorthi 7for himself1 ,mrs4 ,axne1 ,mr4 ,schiff1 ,ms4 ,wild1 ,ms4 ,del,bene1 ,mr4 ,bera1 ,mrs4 ,dingell1 ,ms4 ,kuster of ,new ,hampshire1 and ,mr4 ,soto7 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 worker training4 #a4 ,short title ,this ,act may be cited as the ,investing in ,american ,workers ,act4 #b4 ,employer-provided worker training credit 7a7 ,in general 7#a7 ,determination of credit ,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 ,employer-provided worker training credit 7a7 ,in general ,for purposes of section #ch1 except as provided in subsection 7d71 the employer-provided worker training credit under this section for the taxable year is an amount equal to #bj percent of the excess 7if any7 of-- 7#a7 the qualified training expenditures for such taxable year1 over 7#b7 the average of the qualified training expenditures 7if any7 for the #c taxable years preceding such taxable year4 7b7 ,qualified training expenditures ,for purposes of this section-- 7#a7 ,qualified training expenditures defined 7,a7 ,in general ,the term qualified training expenditures means any expenditures by an employer for qualified training for any non-highly compensated employee4 7,b7 ,exclusions ,the term qualified training expenditures shall not include any amounts paid for meals1 lodging1 transportation1 or other services incidental to expenditures described in subparagraph 7,a74 7#b7 ,qualified training 7,a7 ,in general ,the term qualified training means training which results in the attainment of a recognized postsecondary credential and which is provided pursuant to one of the following3 7i7 ,an apprenticeship program which is registered under the ,act of ,august #af1 #aicg 7commonly known as the ,national ,apprenticeship ,act2 #ej ,stat4 #ffd1 chapter #ffc7 and is in an emerging industry4 7ii7 ,an apprenticeship program which is registered or approved by a recognized ,state apprenticeship agency in accordance with section #a of such ,act and which is in an emerging industry4 7iii7 ,a program of training services listed pursuant to section #abb7;d7 of the ,workforce ,innovation and ,opportunity ,act4 7iv7 ,a program which is conducted by an area career and technical education school1 a community college1 or a labor organization4 7v7 ,a program which is sponsored and administered by an employer1 industry trade association1 industry or sector partnership1 or labor organization4 7,b7 ,emerging industry ,the term emerging industry means1 for a taxable year1 an industry that comprises less than #cj percent of all civilian apprentices registered with the ,department of ,labor for the fiscal year ending in such taxable year4 7,c7 ,community college ,the term community college means an institution which is a junior or community college as defined in section #cab7;f7 of the ,higher ,education ,act of #aife4 7,d7 ,labor organization ,the term labor organization means a labor organization1 within the meaning of the term in section #eja7;c77#e7 of the ,internal ,revenue ,code of #aihf4 7,e7 ,industry trade association ,the term industry trade association means an organization which-- 7i7 is described in paragraph 7#c7 or 7#f7 of section #eja7;c7 of the ,internal ,revenue ,code of #aihf and exempt from taxation under section #eja7;a7 of such ,code1 and 7ii7 is representing an industry4 7,f7 ,other terms ,the terms area career and technical education school1 recognized postsecondary credential1 and industry or sector partnership have the meanings given such terms1 respectively1 by section #c of the ,workforce ,innovation and ,opportunity ,act4 7#c7 ,non-highly compensated employee ,the term non-highly compensated employee means1 with respect to an employer1 an employee whose-- 7,a7 compensation 7as such term is defined in section #dae7;c77#c77 from such employer for services provided for the taxable year does not exceed #hb1jjj1 and 7,b7 rate of compensation1 if applied to a full-time employee for a year1 would not exceed #hb1jjj4 7c7 ,special rules 7#a7 ,special rule in case of no qualified training expenditures in any of #c preceding taxable years 7,a7 ,taxpayers to which paragraph applies ,the credit under this section shall be determined under this paragraph if the taxpayer has no qualified training expenditures in any one of the #c taxable years preceding the taxable year for which the credit is being determined4 7,b7 ,credit rate ,the credit determined under this paragraph shall be equal to #aj percent of the adjusted qualified training expenditures for the taxable year4 7#b7 ,aggregation and allocation of expenditures1 etc ,in determining the amount of the credit under this section1 rules similar to the rules of paragraphs 7#a71 7#b71 7#c71 7#d71 and 7#e7 of section #da7;f7 shall apply4 7d7 ,election ,to apply credit against payroll taxes 7#a7 ,in general ,at the election of a qualified small business 7as defined in section #da7;h77 or a qualified tax-exempt organization 7as defined in section #caaa7;e77#e77;,a77 for any taxable year1 section #caaa7;g7 shall apply to the payroll tax credit portion of the credit otherwise determined under subsection 7a7 for the taxable year and such portion shall not be treated 7other than for purposes of section #bhj;,c7 as a credit determined under subsection 7a74 7#b7 ,payroll tax credit portion ,for purposes of this subsection1 the payroll tax credit portion of the credit determined under subsection 7a7 with respect to any taxpayer for any taxable year is the least of-- 7,a7 the amount specified in the election made under this subsection1 7,b7 the credit determined under subsection 7a7 for the taxable year 7determined before the application of this subsection71 or 7,c7 in the case of a qualified small business other than a partnership or ,s corporation1 the amount of the business credit carryforward under section #ci carried from the taxable year 7determined before the application of this subsection to the taxable year74 7#c7 ,election 7,a7 ,in general ,any election under this subsection for any taxable year-- 7i7 shall specify the amount of the credit to which such election applies1 7ii7 shall be made on or before the due date 7including extensions7 of-- 7,i7 in the case of a partnership1 the return required to be filed under section #fjca1 7,,ii7 in the case of an ,s corporation1 the return required to be filed under section #fjcg1 and 7,,iii7 in the case of any other taxpayer1 the return of tax for the taxable year1 and 7iii7 may be revoked only with the consent of the ,secretary4 7,b7 ,limitations 7i7 ,amount ,the amount specified in any election made under this subsection shall not exceed #bej1jjj4 7ii7 ,number of taxable years ,a person may not make an election under this subsection if such person 7or any other person treated as a single taxpayer with such person under paragraph 7#e77;,a77 has made an election under this subsection for five or more preceding taxable years4 7,c7 ,special rule for partnerships and s corporations ,in the case of a partnership or ,s corporation1 the election made under this subsection shall be made at the entity level4 7#d7 ,aggregation rules 7,a7 ,in general ,except as provided in subparagraph 7,b7-- 7i7 all members of the same controlled group of corporations shall be treated as a single taxpayer1 and 7ii7 all trades or businesses 7whether or not incorporated7 which are under common control shall be treated as a single taxpayer4 7,b7 ,special rules ,for purposes of this subsection and section #caaa7;g7-- 7i7 each of the persons treated as a single taxpayer under subparagraph 7,a7 may separately make the election under paragraph 7#a7 for any taxable year1 and 7ii7 the #bej1jjj amount under paragraph 7#d77;,b77i7 shall be allocated among all persons treated as a single taxpayer under subparagraph 7,a7 in the same manner as under section #da7;f77#a74 7#e7 ,regulations ,the ,secretary shall prescribe such regulations as may be necessary to carry out the purposes of this subsection1 including-- 7,a7 regulations to prevent the avoidance of the purposes of the limitations and aggregation rules under this subsection1 7,b7 regulations to minimize compliance and recordkeeping burdens under this subsection1 and 7,c7 regulations for recapturing the benefit of credits determined under section #caaa7;g7 in cases where there is a recapture or a subsequent adjustment to the payroll tax credit portion of the credit determined under subsection 7a71 including requiring amended income tax returns in the cases where there is such an adjustment4 4 7#b7 ,credit part of general business credit ,section #ch7;b7 of the ,internal ,revenue ,code of #aihf 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 employer-provided worker training credit determined under section #de,t7a74 4 7#c7 ,coordination with deductions ,section #bhj;,c of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7i7 ,employer-,provided worker training credit ,no deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction taken into account in determining the credit under section #de,t for the taxable year which is equal to the amount of the credit determined for such taxable year under section #de,t7a74 4 7#d7 ,clerical amendment ,the table of sections for 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 item3 ,sec4 #de,t4 ,employer-provided worker training credit4 4 7b7 ,credit allowed against alternative minimum tax ,subparagraph 7,b7 of section #ch7;c77#d7 of the ,internal ,revenue ,code of #aihf is amended-- 7#a7 by redesignating clauses 7x71 7xi71 and 7xii7 as clauses 7xi71 7xii71 and 7xiii71 respectively1 and 7#b7 by inserting after clause 7ix7 the following new clause3 7x7 the credit determined under section #de,t with respect to an eligible small business 7as defined in paragraph 7#e77;,a71 after application of rules similar to the rules of paragraph 7#e77;,b771 4 7c7 ,payroll tax credit ,section #caaa of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subsection3 7g7 ,credit for worker training expenses 7#a7 ,in general ,in the case of a taxpayer who has made an election under section #de,t7d7 for a taxable year1 there shall be allowed as a credit against the tax imposed by subsection 7a7 for the first calendar quarter which begins after the date on which the taxpayer files the return specified in section #de,t7d77#c77;,a77ii7 an amount equal to the payroll tax credit portion determined under section #de,t7d77#b74 7#b7 ,limitation ,the credit allowed by paragraph 7#a7 shall not exceed the tax imposed by subsection 7a7 for any calendar quarter on the wages paid with respect to the employment of all individuals in the employ of the employer4 7#c7 ,carryover of unused credit ,if the amount of the credit under paragraph 7#a7 exceeds the limitation of paragraph 7#b7 for any calendar quarter1 such excess shall be carried to the succeeding calendar quarter and allowed as a credit under paragraph 7#a7 for such quarter4 7#d7 ,deduction allowed for credited amounts ,the credit allowed under paragraph 7#a7 shall not be taken into account for purposes of determining the amount of any deduction allowed under chapter #a for taxes imposed under subsection 7a74 4 7d7 ,simplified filing for certain small businesses ,the ,secretary of the ,treasury shall provide for a method of filing returns of tax and information returns required under the ,internal ,revenue ,code of #aihf in a simplified format1 to the extent possible1 for employers with less than #e1jjj1jjj in annual gross receipts4 7e7 ,regulations relating to postsecondary credentials ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of ,labor1 in consultation with the ,secretary of the ,treasury1 shall issue regulations or other guidance applying the definition of the term recognized postsecondary credential as provided in section #c of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #cajb74 7f7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4