[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 124 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 124

    To amend the Internal Revenue Code of 1986 to allow a credit to 
employers for the cost of providing English language training to their 
                               employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 4, 1995

 Mr. Emerson 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 allow a credit to 
employers for the cost of providing English language training to their 
                               employees.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CREDIT FOR EXPENDITURES TO PROVIDE LANGUAGE TRAINING TO 
              EMPLOYEES.

    (a) General Rule.--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 thereof the following new 
section:

``SEC. 45A. EXPENDITURES TO PROVIDE LANGUAGE TRAINING TO EMPLOYEES.

    ``(a) General Rule.--For purposes of section 38, the amount of the 
language training credit determined under this section for the taxable 
year is 50 percent of the qualified language training expenses paid or 
incurred by the taxpayer during the taxable year.
    ``(b) Qualified Language Training Expenses.--For purposes of this 
section--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `qualified language training expenses' 
        means--
                    ``(A) amounts paid or incurred by the taxpayer with 
                respect to expenses incurred by or on behalf of an 
                employee for qualified language training of such 
                employee (including but not limited to tuition, fees, 
                and similar payments, books and supplies); and
                    ``(B) the following expenses paid or incurred by 
                the taxpayer--
                            ``(i) wages (as defined in section 
                        41(b)(2)(D)) paid or incurred by the taxpayer 
                        to an employee for services consisting of 
                        providing qualified language training to 
                        employees of the taxpayer, and
                            ``(ii) expenses of books and supplies used 
                        in connection with the provision of such 
                        training; and
                    ``(C) wages (as so defined) paid to any employee 
                receiving qualified language training to the extent 
                allocable to the time when such employee is receiving 
                such training.
            ``(2) Only domestic employment qualified.--Amounts may be 
        taken into account under paragraph (1) with respect to any 
        employee receiving qualified language training only if 
        substantially all of the services performed by such employee 
        during the taxable year for the taxpayer are performed in the 
        United States or any possession of the United States.
    ``(c) Qualified Language Training.--For purposes of this section, 
the term `qualified language training' means--``(1) training in English 
language and literacy to individuals with limited English proficiency, 
and ``(2) remedial training in English language and literacy.''
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code is amended by striking ``plus'' at the end of 
paragraph (7), by striking the period at the end of paragraph (8) and 
inserting ``, plus'', and by adding at the end thereof the following 
new paragraph:
            ``(9) the language training credit determined under section 
        45A(a).''
    (c) Denial of Double Benefit.--Section 280C of such Code is amended 
by adding at the end thereof the following new subsection:
    ``(d) Credit for Literacy Enhancement Expenses.--No deduction shall 
be allowed for that portion of the qualified literacy education 
expenses (as defined in section 45A(b)) otherwise allowable as a 
deduction for the taxable year which is equal to the amount of the 
credit determined for such taxable year under section 45A(a).''
    (d) Credit Allowable Against Minimum Tax.--Subsection (c) of 
section 38 of such Code is amended by redesignating paragraph (2) as 
paragraph (3) and by inserting after paragraph (1) the following new 
paragraph:
            ``(2) Language training credit allowed against minimum 
        tax.--
                    ``(A) In general.--The amount determined under 
                paragraph (1)(A) shall be reduced by the portion of the 
                language training credit not used against the normal 
                limitation.
                    ``(B) Portion of language training credit not used 
                against normal limitation.--For purposes of 
                subparagraph (A), the portion of the language training 
                credit not used against the normal limitation is the 
                excess (if any) of--
                            ``(i) the portion of the credit allowable 
                        under subsection (a) which is attributable to 
                        the language training credit, over
                            ``(ii) the limitation of paragraph (1) 
                        (determined without regard to this paragraph) 
                        reduced by the portion of the credit under 
                        subsection (a) which is not so attributable.''
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>