,,ii #aafth ,,congress #ast ,session ,s4 #ech ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #be1 #bjai,mr4 ,warner 7for himself1 ,ms4 ,stabenow1 and ,mr4 ,casey7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,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 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 the taxable year1 over 7#b7 the average of the adjusted qualified training expenditures for the #c taxable years preceding the taxable year for which the credit is being determined4 7b7 ,qualified training expenditures ,for purposes of this section-- 7#a7 ,in general ,the term qualified training expenditures means any expenditures for the qualified training of any non-highly compensated employee4 ,such term shall not include any amounts paid for meals1 lodging1 transportation1 or other services incidental to such qualified training4 7#b7 ,qualified training 7,a7 ,in general ,for purposes of paragraph 7#a71 the term qualified training means training which results in the attainment of a recognized postsecondary credential and which is provided through-- 7i7 an apprenticeship program registered under the ,act of ,august #af1 #aicg 7commonly known as the ,national ,apprenticeship ,act2 #ej ,stat4 #ffd1 chapter #ffc2 #bi ,u4,s4,c4 #ej et seq472 7ii7 7,i7 a program of training services which is listed under section #abb7;d7 of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #caeb7;d772 or 7,,ii7 an apprenticeship program which is registered or approved by a recognized ,state apprenticeship agency 7which uses a ,state apprenticeship council7 in accordance with section #a of the ,act referred to in clause 7i72 7iii7 a program which is conducted by an area career and technical education school1 a community college1 or a labor organization2 or 7iv7 a program which is sponsored and administered by an employer1 industry trade association1 industry or sector partnership1 or labor organization4 7,b7 ,related definitions ,in subparagraph 7,a73 7i7 ,area career and technical education school ,the term area career and technical education school means such a school1 as defined in section #c of the ,carl ,d4 ,perkins ,career and ,technical ,education ,act of #bjjf 7#bj ,u4,s4,c4 #bcjb71 which participates in a program under that ,act 7#bj ,u4,s4,c4 #bcja et seq474 7ii7 ,community college ,the term community college means an institution which-- 7,i7 is a junior or community college as defined in section #cab7;f7 of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajeh7;f771 except that the institution need not meet the requirements of paragraph 7#a7 of that section2 and 7,,ii7 participates in a program under title ,,iv of that ,act 7#bj ,u4,s4,c4 #ajgj et seq474 7iii7 ,industry or sector partnership ,the term industry or sector partnership has the meaning given such term under section #c of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #cajb74 7iv7 ,industry trade association ,the term industry trade association means an organization which-- 7,i7 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 ,code2 and 7,,ii7 is representing an industry4 7v7 ,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 7vi7 ,recognized postsecondary credential ,the term recognized postsecondary credential means a credential consisting of an industry-recognized certificate or certification1 a certificate of completion of an apprenticeship1 a license recognized by the ,state involved or ,federal ,government1 or an associate or baccalaureate degree4 7#c7 ,non-highly compensated employee ,for purposes of paragraph 7#a71 the term non-highly compensated employee means an employee of the taxpayer whose remuneration for the taxable year for services provided to the taxpayer does not exceed #hb1jjj4 7c7 ,adjusted qualified training expenditures ,for purposes of this section1 the term adjusted qualified training expenses means1 with respect to any taxable year-- 7#a7 the qualified training expenses for such taxable year1 multiplied by 7#b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year for which the credit is being determined begins1 except that section #a7;f77#c77;,a77ii7 shall be applied by using the ,,cpi for the calendar year in which the taxable year in which qualified training expenses were paid or incurred begins in lieu of the ,,cpi for calendar year #aihb4 7d7 ,special rules ,for purposes of this section-- 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 ,rules similar to the rules of paragraphs 7#a71 7#b71 7#c71 7#d71 and 7#e7 of section #da7;f7 shall apply4 7e7 ,election ,to apply credit against payroll taxes 7#a7 ,in general ,at the election of a qualified small business 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 qualified small business or qualified tax-exempt organization 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 ,qualified small business ,for purposes of this subsection-- 7,a7 ,in general ,the term qualified small business means1 with respect to any taxable year-- 7i7 a corporation or partnership1 if-- 7,i7 the gross receipts 7as determined under the rules of section #ddh7;c77#c71 without regard to subparagraph 7,a7 thereof7 of such entity for the taxable year is less than #e1jjj1jjj1 and 7,,ii7 such entity did not have gross receipts 7as so determined7 for any taxable year preceding the #e-taxable-year period ending with such taxable year1 and 7ii7 any person 7other than a corporation or partnership7 who meets the requirements of subclauses 7,i7 and 7,,ii7 of clause 7i71 determined-- 7,i7 by substituting person for entity each place it appears1 and 7,,ii7 by only taking into account the aggregate gross receipts received by such person in carrying on all trades or businesses of such person4 7,b7 ,limitation ,such term shall not include an organization which is exempt from taxation under section #eja4 7#d7 ,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 qualified small business or qualified tax-exempt organization1 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#e7 ,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#c77;,b77i7 shall be allocated among all persons treated as a single taxpayer under subparagraph 7,a7 in the manner provided by the ,secretary which is similar to the manner provided under section #da7;f77#a74 7#f7 ,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;,c71 after application of rules similar to the rules of paragraph 7#e77;,d771 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,t7e7 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,t7e77#d77;,a77ii7 an amount equal to the payroll tax credit portion determined under section #de,t7e77#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 receipts 7as determined under guidance provided by the ,secretary74 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