[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2998 Introduced in House (IH)]


104th CONGRESS
  2d Session
                                H. R. 2998

   To amend the Internal Revenue Code of 1986 to allow a credit for 
     increases in the worker retraining expenditures of employers.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 29, 1996

Mr. Torricelli 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 for 
     increases in the worker retraining expenditures of employers.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Credit for Worker Retraining Act 
of 1996''.

SEC. 2. CREDIT FOR INCREASES IN WORKER RETRAINING EXPENDITURES.

    (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:

``SEC. 45C. WORKER RETRAINING INCREASE CREDIT.

    ``(a) In General.--For purposes of section 38, the worker 
retraining increase credit determined under this section for the 
taxable year is, for any employer, the excess (if any) of--
            ``(1) the qualified worker retraining expenses paid or 
        incurred by such employer in such taxable year, over
            ``(2) the average of the qualified worker retraining 
        expenses paid or incurred by such employer in each of the 3 
        preceding taxable years.
    ``(b) Limitation.--In no event shall the amount determined under 
subsection (a)(2) be treated as less than 50 percent of the amount 
determined under subsection (a)(1).
    ``(c) Qualified Worker Retraining Expenses.--For purposes of this 
section--
            ``(1) In general.--The term `qualified worker retraining 
        expenses' means expenses paid or incurred by an employer for--
                    ``(A) a program provided by such employer to train 
                employees of such employer regarding skills directly 
                related to the specific jobs of such employees, or
                    ``(B) courses provided by (or reimbursed by) such 
                employer to provide or improve the skills necessary for 
                employees of such employer to advance in a career.
            ``(2) Limitation.--Such term does not include, for any 
        taxable year, any expenses paid or incurred with respect to any 
        employee who is a member of the group consisting of the highest 
        paid 5 percent of the employees of such employer for such 
        taxable year.
    ``(d) Special Rules.--Rules similar to the rules of section 41(f) 
shall apply for purposes of this section.''
    (b) Carryforward, Carryback, and Deduction for Unused Credits.--
            (1) Carryforward and carryback.--Section 38 of such Code 
        (relating to general business credit) is amended by striking 
        ``plus'' at the end of paragraph (10), by striking the period 
        at the end of paragraph (11) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(12) the worker retraining increase credit determined 
        under section 45C.''
            (2) Transitional rule for carrybacks.--Subsection (d) of 
        section 39 of such Code (relating to transitional rules) is 
        amended by adding at the end the following new paragraph:
            ``(7) No carryback of section 45c credit enactment.--No 
        portion of the unused business credit for any taxable year 
        which is attributable to the worker retraining increase credit 
        determined under section 45C may be carried back to a taxable 
        year ending before the date of the enactment of section 45C.''
            (3) Deduction for unused credits.--Subsection (c) of 
        section 196 of such Code (relating to deduction for certain 
        unused business credits) is amended by striking ``and'' at the 
        end of paragraph (6), by striking the period at the end of 
        paragraph (7) and inserting ``, and'', and by adding at the end 
        the following new paragraph:
            ``(8) the worker retraining increase credit determined 
        under section 45C.''
    (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. 45C. Worker retraining increase 
                                        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.
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