,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #hchd  ,,in ,,the ,,house ,,of  
,,representatives  ,september #bd1 #bjbj
 ,ms4 ,kuster of ,new ,hampshire        
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 employers a credit against income 
tax as an incentive to partner with     
educational institutions to improve     
workforce development and job training  
for students and a credit against income
 tax for certain expenses of job        
training programs4  #a4 ,short title    
,this ,act may be cited as the          
,workforce ,development ,investment ,act
 of #bjbj4  #b4 ,credit for employers   
which partner with educational          
institutions to improve workforce       
development and job training for        
students  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,u4      
,employers partnering with educational  
institutions to improve workforce       
development and job training for        
students  7a7 ,general rule ,for        
purposes of section #ch1 the employer   
partnering credit determined under this 
section for any taxable year is an      
amount equal to #e1jjj for each         
qualified educational institution       
engaged in a qualified partnership with 
the employer4  7b7 ,maximum credit  7#a7
 ,in general ,the credit determined     
under this section for any taxable year 
shall not exceed #bj1jjj4  7#b7         
,controlled groups ,all persons treated 
as a single employer under subsection   
7b71 7c71 7m71 or 7o7 of section #dad   
shall be treated as a single employer   
for purposes of paragraph 7#a74  7c7    
,definitions ,for purposes of this      
section--  7#a7 ,qualified educational  
institution ,the term qualified         
educational institution means any       
community college1 any other institution

 of higher education1 and any area      
career and technical education school4  
7#b7 ,community college ,the term       
community college means an institution  
of higher education that--  7,a7 admits 
as a regular student an individual who  
is beyond the age of compulsory school  
attendance in the ,state in which the   
institution is located and who has the  
ability to benefit from the training    
offered by the institution1 and  7,b7   
offers a #b-year program in engineering1
 mathematics1 or the physical or        
biological sciences designed to prepare 
a student to work as a technician or at 
the semiprofessional level in           
engineering1 scientific1 or other       
technological fields requiring the      
understanding and application of basic  
engineering1 scientific1 or mathematical
 principles of knowledge4  7#c7         
,institution of higher education ,the   
term institution of higher education has
 the meaning given such term in section 
#ajb of the ,higher ,education ,act of  

#aife 7#bj ,u4,s4,c4 #ajjb74  7#d7 ,area
 career and technical education school  
,the term area career and technical     
education school has the meaning given  
such term in section #c of the ,carl ,d4
 ,perkins ,career and ,technical        
,education ,act of #bjjf 7#bi ,u4,s4,c4 
#bcjb74  7#e7 ,qualified partnership    
,not later than six months after the    
date of the enactment of this section1  
the ,secretary of ,education1 in        
consultation with the ,secretary of     
,labor1 shall define the term qualified 
partnership4 ,such term shall include a 
partnership through which-- 7,a7 an     
employer collaborates with an           
educational institution to help develop 
curriculum in order to improve workforce
 development and job training for       
students1  7,b7 an employer helps       
provide instruction to students in the  
classroom1 and  7,c7 an employer        
provides internships1 apprenticeships1  
or other similar educational            
opportunities in the workplace for      

students4  ,the ,secretary shall1 to the
 extent practicable1 minimize the       
burdens of educational institutions in  
any qualification process or            
requirements prescribed under this      
paragraph4  7d7 ,certain rules ,to      
,apply ,for purposes of this section1   
rules similar to the rules of           
subsections 7c71 7d71 and 7e7 of section
 #eb shall apply4  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#cb71 by striking the period 
at the end of paragraph 7#cc7 and       
inserting 1 plus1 and by adding at the  
end the following new paragraph3  7#cd7 
the employer partnering credit          
determined under section #de,u4  4  7c7 
,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,u4   
,employers partnering with educational  

institutions to improve workforce       
development and job training for        
students4  4  7d7 ,effective date ,the  
amendments made by this section shall   
apply to taxable years beginning after  
the date of the enactment of this ,act4 
#c4 ,tax credit for employers who engage
 in qualified worker training  7a7 ,in  
general ,subpart ,d of part ,,iv of     
subchapter ,a of chapter #a of the      
,internal ,revenue ,code of #aihf1 as   
amended by the preceding provisions of  
this ,act1 is amended by adding at the  
end the following new section3  #de,v4  
,credit for employers who engage in     
qualified worker training  7a7 ,in      
general ,for purposes of section #ch1 in
 the case of any employer1 the worker   
training tax credit determined under    
this section with respect to any        
eligible employee of the employer is an 
amount equal to the lesser of-- 7#a7 #ej
 percent of the job training program    
expenditures of the taxpayer with       
respect to such employee during the     

taxable year1 or  7#b7 #e1jjj4  7b7 ,job
 training program expenses ,for purposes
 of this section--  7#a7 ,in general    
,the term job training program expenses 
means amounts paid or incurred by the   
employer for expenses incurred by or on 
behalf of an eligible employee for      
participation in a qualified training   
program4  7#b7 ,qualified training      
program ,the term qualified training    
program means--  7,a7 a qualified       
partnership 7as defined in section      
#de,u7c77#e771 or  7,b7 an              
apprenticeship program registered and   
certified with the ,secretary of ,labor 
under section #a of the ,national       
,apprenticeship ,act 7#bi ,u4,s4,c4     
#ej74  7c7 ,eligible employee ,for      
purposes of this section1 the term      
eligible employee means any employee of 
the employer who1 while participating in
 the qualified training program1 is--   
7#a7 employed on average at least #dj   
hours of service per week1 or  7#b7 in  
the case of a qualified training program

 with a qualified partnership 7as       
defined in section #de,u7c77#e771 meets 
such hourly work requirements as may be 
specified by the ,secretary of          
,education in connection with such      
partnership4  7d7 ,recapture of credit  
for employee not performing minimum     
service  7#a7 ,in general ,in the case  
of any employee with respect to whom a  
credit is allowed under this section and
 whose employment is terminated by the  
employer 7other than by reason of such  
employee's gross misconduct7 before the 
end of the #b-year period beginning on  
the first day of the employee's study or
 training with respect to which a credit
 is allowed under this section1 the tax 
of the taxpayer under this chapter for  
the taxable year during which such      
termination occurs shall be increased by
 an amount equal to--  7,a7 the         
aggregate decrease in the credits       
allowed under section #ch for all prior 
taxable years which would have resulted 
if the job training program expenses    

with respect to such employee had been  
zero1 multiplied by  7,b7 the inclusion 
ratio4  7#b7 ,inclusion ratio ,for      
purposes of this subsection1 the        
inclusion ratio is the ratio which--    
7,a7 an amount equal to the difference  
of--  7i7 the number of days in the     
#b-year period1 over  7ii7 the number of
 days such employee was employed by the 
employer during such #b-year period1    
bears to  7,b7 the number of days in the
 #b-year period4  7e7 ,controlled groups
 ,for purposes of this section1 all     
persons treated as a single employer    
under subsection 7b71 7c71 7m71 or 7o7  
of section #dad shall be treated as a   
single employer4  4  7b7 ,credit ,to be 
part of general business credit         
,subsection 7b7 of section #ch of such  
,code1 as amended by the preceding      
provisions of this ,act1 is amended by  
striking plus at the end of paragraph   
7#cc71 by striking the period at the end
 of paragraph 7#cd7 and inserting 1     
plus1 and by adding at the end the      

following new paragraph3  7#ce7 the     
worker training tax credit determined   
under section #de,v7a74  4  7c7         
,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,v4   
,credit for employers who engage in     
qualified worker training4  4  7d7      
,effective date ,the amendments made by 
this section shall apply to taxable     
years beginning after the date of the   
enactment of this ,act4