H. R. 1538
IN THE HOUSE OF REPRESENTATIVES
April 12, 2013
Ms. Eddie Bernice Johnson of Texas (for herself, Ms. Brown of Florida, Mr. Carson of Indiana, Mr. Hinojosa, and Mr. Peters of Michigan) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, 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
To provide incentives to encourage financial institutions and small businesses to provide continuing financial education to customers, borrowers, and employees, and for other purposes.
This Act may be cited as the
National Financial Literacy Act of
Financial literacy programs
Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 2903) is amended by adding at the end the following new subsection:
Direct support for financial literacy programs taken into account
Standards established for eligible programs
The appropriate Federal financial supervisory agencies shall jointly prescribe regulations establishing—
the minimum standards required to be met by a community-based financial literacy program in order to be eligible for consideration under paragraph (3) as a qualified community-based financial literacy program;
the procedures for financial institutions to apply to the appropriate Federal financial supervisory agency for approval of a financial literacy program as a qualified community-based financial literacy program; and
a requirement that financial institutions submit a regular report on how the institution supported and promoted financial literacy in its entire community, including low- and moderate-income neighborhoods.
The regulations required under paragraph (1) shall require at a minimum that a qualified community-based financial literacy program—
be offered by a nonprofit budget and counseling agency which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986; and
include adequate education to promote 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.
Programs taken into account
The direct support by a financial institution of a qualified community-based financial literacy program may be taken into account by the appropriate Federal financial supervisory agency under subsection (a) in assessing the institution’s record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, in such amount and to such extent as may be provided in the joint regulations prescribed under paragraph (1).
Credit against income tax for small businesses which provide continuing financial education to employees
Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:
Small businesses providing continuing financial education to employees
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.
Eligible small business
For purposes of this section, the term
small business means any small business which provides without charge a
qualified continuing financial education program to its employees throughout
the taxable year.
Qualified continuing financial education program
For purposes of this section—
qualified continuing financial education
program means any educational program or services—
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),
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,
which is offered to all employees of the taxpayer who have at least 2 weeks of service with the employer, and
which is offered during—
at least 24 hours of each month if the taxpayer is a corporation, or
at least 16 hours of each month in any other case.
For purposes of this section—
business means, with respect to any taxable year, any employer
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
such employer employed at least 2 employees on the first day of the taxable year.
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.
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.
Any reference in this subsection to an employer shall include a reference to any predecessor of such employer.
Denial of double benefit
Section 280C of such Code is amended—
by redesignating the second subsection (g) (related to the qualifying therapeutic discovery project credit) as subsection (i); and
by adding at the end the following new subsection:
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 45S(a). In the case of persons treated as a single employer under section 45S(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.
Credit To be part of general business credit
Section 38(b) of such Code is amended by
plus at the end of paragraph (35), by striking the
period at the end of paragraph (36) and inserting
, plus, and by
adding at the end the following new paragraph:
the continuing financial education credit under section 45S(a).
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. 45S. Small businesses
providing continuing financial education to employees..
The amendments made by this section shall apply to taxable years beginning after December 31, 2012.