[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2089 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2089

To amend the Internal Revenue Code of 1986 to allow employers a credit 
against income tax for information technology training expenses paid or 
           incurred by the employer, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 18, 1998

 Mr. Conrad (for himself and Mrs. Feinstein) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow employers a credit 
against income tax for information technology training expenses paid or 
           incurred by the employer, and for other purposes.

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

SECTION 1. CREDIT FOR INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.

    (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:

``SEC. 45D. INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.

    ``(a) General Rule.--For purposes of section 38, in the case of an 
employer, the information technology training program credit determined 
under this section is an amount equal to 20 percent of information 
technology training program expenses paid or incurred by the taxpayer 
during the taxable year.
    ``(b) Additional Credit Percentage for Certain Programs.--The 
percentage under subsection (a) shall be increased by 5 percentage 
points for information technology training program expenses paid or 
incurred by the taxpayer with respect to a program operated in--
            ``(1) an empowerment zone or enterprise community 
        designated under part I of subchapter U,
            ``(2) a school district in which a least 50 percent of the 
        students attending schools in such district are eligible for 
        free or reduced-cost lunches under the school lunch program 
        established under the National School Lunch Act, or
            ``(3) an area designated as a disaster area by the 
        Secretary of Agriculture or by the President under the Disaster 
        Relief and Emergency Assistance Act in the taxable year or the 
        4 preceding taxable years.
    ``(c) Limitation.--The amount of information technology training 
program expenses with respect to an employee which may be taken into 
account under subsection (a) for the taxable year shall not exceed 
$6,000.
    ``(d) Information Technology Training Program Expenses.--For 
purposes of this section--
            ``(1) In general.--The term `information technology 
        training program expenses' means expenses paid or incurred by 
        reason of the participation of the employer in any information 
        technology training program.
            ``(2) Information technology training program.--The term 
        `information technology training program' means a program--
                    ``(A) for the training of computer programmers, 
                systems analysts, and computer scientists or engineers 
                (as such occupations are defined by the Bureau of Labor 
                Statistics),
                    ``(B) involving a partnership of--
                            ``(i) employers, and
                            ``(ii) State training programs, school 
                        districts, or university systems, and
                    ``(C) at least 50 percent of the costs of which is 
                paid or incurred by the employers.
    ``(e) Denial of Double Benefit.--No deduction or credit under any 
other provision of this chapter shall be allowed with respect to 
information technology training program expenses (determined without 
regard to the limitation under subsection (c)).
    ``(f) Allocations.--For purposes of this section, rules similar to 
the rules of section 41(f)(2) shall apply.''
    (b) Credit To Be Part of General Business Credit.--Section 38(b) of 
the Internal Revenue Code of 1986 (relating to current year business 
credit) is amended by striking ``plus'' at the end of paragraph (11), 
by striking the period at the end of paragraph (12) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(13) the information technology training program credit 
        determined under section 45D.''
    (c) No Carrybacks.--Subsection (d) of section 39 of the Internal 
Revenue Code of 1986 (relating to carryback and carryforward of unused 
credits) is amended by adding at the end the following new paragraph:
            ``(9) No carryback of section 45D credit before effective 
        date.--No portion of the unused business credit for any taxable 
        year which is attributable to the information technology 
        training program credit determined under section 45D may be 
        carried back to a taxable year ending before the date of the 
        enactment of section 45D.''
    (d) Clerical Amendment.--The table of sections for 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 item:

                              ``Sec. 45D. Information technology 
                                        training program expenses.''
    (e) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act in taxable years ending after such date.
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