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H.R. 3037 (116th): Career Advancement through New Skills Act


The text of the bill below is as of May 28, 2019 (Introduced). The bill was not enacted into law.


I

116th CONGRESS

1st Session

H. R. 3037

IN THE HOUSE OF REPRESENTATIVES

May 28, 2019

(for himself and Mr. Byrne) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide a credit to employers for certain employee education and training expenses.

1.

Short title

This Act may be cited as the Career Advancement through New Skills Act.

2.

Credit for employee education and training expenses

(a)

In general

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:

45T.

Employee education and training credit

(a)

Allowance of credit

For purposes of section 38, the employee education and training credit determined under this section for the taxable year is an amount equal to 25 percent of the qualified education and training expenses paid or incurred by the taxpayer during such taxable year with respect to employees of the taxpayer.

(b)

Limitation

The qualified education and training expenses taken into account under subsection (a) shall not exceed $5,000 with respect to any employee for any taxable year.

(c)

Qualified education and training expenses

For purposes of this section, the term qualified education and training expenses means amounts paid or incurred for a program of education or training of an employee of the taxpayer if such program is specifically designed to maintain or improve skills of such employee which are necessary or useful either—

(1)

in the employee’s current employment position with such employer, or

(2)

in another employment position with such employer to which the employer reasonably anticipates such employee may transfer.

Such term shall not include any amount paid or incurred for a program of education or training which is provided by such employer or by any person which bears a relationship to such employer described in section 267(b) or 707(b)(1).
(d)

Special rules

(1)

Aggregation

All persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single employer for purposes of this section.

(2)

Denial of double benefit

No deduction or credit shall be allowed under any other provision of this chapter with respect to the amount of the credit determined under this section.

(3)

Trade or business requirement

No credit shall be allowed under this section with respect to any employee unless such employee is providing services in a trade or business of the taxpayer.

.

(b)

Credit made part of general business credit

Subsection (b) of section 38 of the Internal Revenue Code of 1986 is amended by striking plus at the end of paragraph (31), by striking the period at the end of paragraph (32) and inserting , plus, and by adding at the end the following new paragraph:

(33)

the employee education and training credit determined under section 45T.

.

(c)

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. 45T. Employee education and training credit..

(d)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.