[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 204 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 204

To amend the Internal Revenue Code of 1986 to allow employers a credit 
     against income tax for high technology job training expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 6, 1999

Mr. Moran of Virginia 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 employers a credit 
     against income tax for high technology job training expenses.

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

SECTION 1. CREDIT FOR HIGH TECHNOLOGY JOB TRAINING 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:

``SEC. 45D. CREDIT FOR HIGH TECHNOLOGY JOB TRAINING.

    ``(a) General Rule.--For purposes of section 38, the high 
technology job training credit determined under this section is an 
amount equal to 50 percent of the qualified high technology job 
training expenses paid or incurred by the taxpayer during the taxable 
year.
    ``(b) Limitation.--The credit allowed under subsection (a) shall 
not exceed $2,500 for the taxable year with respect to each 
substantially full-time employee.
    ``(c) Qualified High Technology Job Training Expense.--For purposes 
of this section--
            ``(1) In general.--The term `qualified high technology job 
        training expense' means any expense for educational assistance 
        described in paragraph (1) of section 127(c) for the training 
        of a substantially full-time employee in an information 
        technology occupation.
            ``(2) Exceptions.--Such term does not include--
                    ``(A) expenses for which any other Federal or State 
                credit or payment is made; or
                    ``(B) expenses paid or incurred for a professional 
                conference or for an orientation program.
    ``(d) Information Technology Occupation.--For purposes of this 
section, the term `information technology occupation' means an 
occupation specializing in the study, design, development, 
implementation, support, or management of computer based information 
systems, such as computer scientist, computer engineer, systems 
analyst, or computer programmer.
    ``(e) Substantially Full-Time Employee.--For purposes of this 
section, the term `substantially full-time employee' means an employee 
of the taxpayer who is normally employed for at least 30 hours per 
week.
    ``(f) Aggregation Rules.--All persons treated as a single employer 
under subsection (a) or (b) of section 52 or subsection (m) or (o) of 
section 414 shall be treated as one person for purposes of this 
section.
    ``(g) Termination.--This section shall not apply to any expenses 
paid or incurred after December 31, 2003.''
    (b) Current Year Business Credit Calculation.--Subsection (b) of 
section 38 of such Code is amended--
            (1) by striking ``plus'' at the end of paragraph (11);
            (2) by striking the period at the end of paragraph (12) and 
        inserting ``, plus''; and
            (3) by adding at the end the following:
            ``(13) the high technology job training credit determined 
        under section 45D(a).''
    (c) Disallowance of Deduction by Amount of Credit.--Section 280C of 
such Code (relating to certain expenses for which credits are 
allowable) is amended by adding at the end the following:
    ``(d) Credit for Certain Job Training Expenses.--No deduction shall 
be allowed for that portion of the qualified high technology job 
training expenses (as defined in section 45D(c)) paid or incurred 
during the taxable year that is equal to the amount of credit 
determined for the taxable year under section 45D(a). In the case of a 
corporation which is a member of a controlled group of corporations 
(within the meaning of section 52(a)) or a trade or business which is 
treated as being under common control with other trades or businesses 
(within the meaning of section 52(b)), this subsection shall be applied 
under rules prescribed by the Secretary similar to the rules applicable 
under subsections (a) and (b) of section 52.''
    (d) Deduction for Unused Credit.--Subsection (c) of section 196 of 
such Code is amended--
            (1) by striking ``and'' at the end of paragraph (6);
            (2) by striking the period at the end of paragraph (7) and 
        inserting ``, and''; and
            (3) by adding at the end the following:
            ``(8) the high technology job training credit determined 
        under section 45D(a).''
    (e) Limitation on Carryback.--Subsection (d) of section 39 of such 
Code is amended by adding at the end the following:
            ``(8) No carryback of high technology job training credit 
        before effective date.--No amount of unused business credit 
        available under section 45D may be carried back to a taxable 
        year beginning on or before the date of the enactment of this 
        paragraph.''
    (f) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45C the following:

                              ``Sec. 45D. Credit for high technology 
                                        job training.''
    (g) 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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