[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 838 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 838

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 HOUSE OF REPRESENTATIVES

                           February 24, 1999

     Mr. Moran of Virginia (for himself, Mr. Salmon, Mr. Smith of 
 Washington, Mr. Wolf, Mrs. Maloney of New York, Mr. Conyers, and Mr. 
    Shows) 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 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:

``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--
            ``(1) in an empowerment zone or enterprise community 
        designated under part I of subchapter U,
            ``(2) in a school district in which at 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,
            ``(3) in 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,
            ``(4) in a rural enterprise community designated under 
        section 766 of the Agriculture, Rural Development, Food and 
        Drug Administration, and Related Agencies Appropriations Act, 
        1999,
            ``(5) in an area designated by the Secretary of Agriculture 
        as a Rural Economic Area Partnership Zone, or
            ``(6) by an employer who has 200 or fewer employees for 
        each working day in each of 20 or more calendar weeks in the 
        current or preceding calendar year.
    ``(c) Limitation.--The amount of information technology training 
program expenses with respect to an individual 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, university systems, or certified 
                        commercial information technology training 
                        providers, and
                    ``(C) at least 50 percent of the costs of which are 
                paid or incurred by the employers.
            ``(3) Certified commercial information technology training 
        provider.--The term `certified commercial information 
        technology training providers' means a private sector provider 
        of educational products and services utilized for training in 
        information technology which is certified with respect to--
                    ``(A) the curriculum that is used for the training, 
                or
                    ``(B) the technical knowledge of the instructors of 
                such provider,
        by 1 or more software publishers or hardware manufacturers the 
        products of which are a subject of the training.
    ``(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:
            ``(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:
            ``(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:

                              ``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 enactment of this 
Act in taxable years ending after such date.
                                 <all>