< Back to H.R. 5965 (110th Congress, 2007–2009)

Text of the Employers Financial Literacy Act

This bill was introduced on May 5, 2008, in a previous session of Congress, but was not enacted. The text of the bill below is as of May 5, 2008 (Introduced).

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Source: GPO

I

110th CONGRESS

2d Session

H. R. 5965

IN THE HOUSE OF REPRESENTATIVES

May 5, 2008

introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To encourage small businesses to provide continuing financial education to their employees by providing a credit against income tax to cover a portion of the costs of providing that education and by giving such businesses and corporations providing such financial education preferential status when applying for Federal contracts, loans, and other assistance.

1.

Short title

This Act may be cited as the Employers Financial Literacy Act.

2.

Credit against income tax for small businesses which provide continuing financial education to employees

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section:

45O.

Small businesses providing continuing financial education to employees

(a)

In general

In the case of an eligible small business, the continuing financial education credit determined under this section is an amount equal to 35 percent of the continuing financial education expenses paid or incurred by the taxpayer during the taxable year.

(b)

Eligible small business

For purposes of this section, the term eligible small business means any small business which provides without charge a qualified continuing financial education program to its employees throughout the taxable year.

(c)

Qualified continuing financial education program

For purposes of this section—

(1)

In general

The term qualified continuing financial education program means any educational program or services—

(A)

which is provided by a community-based budget and counseling agency which is described in section 501(c)(3) and exempt from tax under section 501(a),

(B)

which promotes consumer understanding of consumer, economic, and personal finance issues and concepts, including saving for retirement, managing credit, long-term care, estate planning and education on predatory lending, identity theft, and financial abuse schemes,

(C)

which is offered to all employees of the taxpayer who have at least 2 weeks of service with the employer, and

(D)

which is offered during—

(i)

at least 24 hours of each month if the taxpayer is a corporation, or

(ii)

at least 16 hours of each month in any other case.

(d)

Small business

For purposes of this section—

(1)

In general

The term small business means, with respect to any taxable year, any employer if—

(A)

such employer employed an average of at least 2 but not more than 50 employees on business days during the most recent calendar year ending before such taxable year, and

(B)

such employer employed at least 2 employees on the first day of the taxable year.

(2)

Employers not in existence in preceding year

In the case of an employer which was not in existence throughout the calendar year referred to in paragraph (1), the determination under paragraph (1) shall be based on the average number of employees that it is reasonably expected such employer will employ on business days in the taxable year.

(3)

Special rules

(A)

Controlled groups

For purposes of this subsection, all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as 1 employer.

(B)

Predecessors

Any reference in this subsection to an employer shall include a reference to any predecessor of such employer.

.

(b)

Denial of double benefit

Section 280C of such Code (relating to certain expenses for which credits are allowable) is amended by adding at the end the following new subsection:

(f)

Credit for small businesses providing continuing financial education to employees

No deduction shall be allowed for that portion of the expenses paid or incurred during the taxable year which is equal to the credit determined for the taxable year under sections 45O(a). In the case of persons treated as a single employer under section 45O(d)(3)(A), this subsection shall be applied under rules prescribed by the Secretary similar to the rules applicable under subsections (a) and (b) of section 52.

.

(c)

Credit To be part of general business credit

Section 38(b) of such Code is amended by striking plus at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting , plus, and by adding at the end the following new paragraph:

(32)

in the case of an eligible small business (as defined in section 45O(d)), the continuing financial education credit under section 40O(a).

.

(d)

Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

Sec. 40O. Small businesses providing continuing financial education to employees..

(e)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2008.

3.

Preference in Federal contracts, loans, and other assistance for small businesses and corporations providing continuing financial education to employees

(a)

Preference

In the case of any Federal contract or any Federal financial or nonfinancial assistance, an eligible small business or an eligible corporation shall be given a preference when submitting a bid or proposal for the contract or applying for such assistance.

(b)

Definitions

In this section:

(1)

Eligible small business

The term eligible small business has the meaning provided in section 45O(b) of the Internal Revenue Code of 1986.

(2)

Eligible corporation

The term eligible corporation means any corporation—

(A)

that employs 50 or more employees; and

(B)

that provides without charge a qualified continuing financial education program to its employees throughout the taxable year.

(3)

Qualified continuing financial education program

The term qualified continuing financial education program has the meaning provided in section 45O(c) of the Internal Revenue Code of 1986.

(4)

Federal financial or nonfinancial assistance

The term Federal financial or nonfinancial assistance means—

(A)

all programs and activities involving Federal financial and nonfinancial assistance and benefits, as covered by Executive Order No. 12549 and guidelines implementing that order; and

(B)

procurement programs and activities, including Federal contracts for the procurement of goods or services.

(c)

Effective date

The preference required under subsection (a) shall be applied beginning on January 1, 2010.