[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5420 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5420

 To provide a tax credit for job training by successful companies, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 26, 2010

Mr. Perlmutter (for himself and Mr. Coffman of Colorado) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To provide a tax credit for job training by successful companies, 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. SHORT TITLE.

    This Act may be cited as the ``Incentives for Successful Companies 
Act of 2010''.

SEC. 2. CREDIT FOR JOB TRAINING BY SUCCESSFUL COMPANIES.

    (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. 45S. JOB TRAINING BY SUCCESSFUL COMPANIES.

    ``(a) General Rule.--For purposes of section 38, the successful 
company job training credit determined under this section for the 
taxable year is an amount equal to the amount paid or incurred by the 
employer in providing qualified job training during the taxable year.
    ``(b) Qualified Job Training.--For purposes of this section--
            ``(1) In general.--The term `qualified job training' means 
        job training provided to a United States employee within the 4-
        week period beginning on the hiring date of such employee. The 
        preceding sentence shall apply only to those United States 
        employees who first begin work for the taxpayer after the date 
        of the enactment of this section.
            ``(2) Items included.--Such term includes--
                    ``(A) properly allocated labor, material, and 
                associated overhead costs for the trainers,
                    ``(B) non-working paid training hours, and
                    ``(C) associated overhead for the trainees.
            ``(3) Items excluded.--Such term does not include general 
        and administrative costs.
    ``(c) United States Employee.--For purposes of this section--
            ``(1) In general.--The term `United States employee' means 
        an individual who is lawfully present in the United States and 
        employed full time by the taxpayer in the United States.
            ``(2) Valid social security account number required.--Such 
        term shall not include any individual who does not have a valid 
        social security account number.
            ``(3) Social security account number.--The term `social 
        security account number' means a social security number issued 
        to an individual by the Social Security Administration (other 
        than a social security number issued pursuant to clause (II) 
        (or that portion of clause (III) that relates to clause (II)) 
        of section 205(c)(2)(B)(i) of the Social Security Act).
    ``(d) Other Definitions.--For purposes of this section--
            ``(1) Successful company.--The term `successful company' 
        means any United States company or enterprise which the 
        Secretary determines--
                    ``(A) maintains a long-term United States growth 
                plan that meets the criteria established by the 
                Secretary under this section,
                    ``(B) as of the time of the determination, is 
                experiencing financial performance and achieving a 
                balance sheet would have qualified such company or 
                enterprise for a certain level of loan from primary 
                lending sources of such company or enterprise as of 
                June 1, 2008, on the basis of credit and underwriting 
                criteria in effect on such date, but cannot get access 
                to loans from such lending sources as of the date of 
                such determination because of current tighter credit 
                and underwriting criteria, and
                    ``(C) in the most recent calendar year had an 
                average of not fewer than 5 employees and not more than 
                500 employees.
            ``(2) Hiring date.--The term `hiring date' has the meaning 
        given such term by section 51(d)(11).
            ``(3) United states.--The term `United States' includes the 
        District of Columbia and the possessions of the United States.
    ``(e) Special Rules.--
            ``(1) Monetization of credit.--At the election of the 
        taxpayer, the credit allowed under this section shall be 
        treated as a credit allowed under subpart C and not allowed 
        under subsection (a).
            ``(2) Election not to claim credit.--This section shall not 
        apply to a taxpayer for any taxable year if such taxpayer 
        elects to have this section not apply for such taxable year.
    ``(f) Termination.--Subsection (a) shall not apply to taxable years 
beginning after December 31, 2014.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code (relating to general business credit) is 
amended by striking ``plus'' at the end of paragraph (35), by striking 
the period at the end of paragraph (36) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(37) the successful company job training credit 
        determined under section 45S(a).''.
    (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 
inserting after the item relating to section 45R the following new 
item:

``Sec. 45S. Job training by successful companies.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2009.

SEC. 3. INCREASE IN EXPENSING BY SUCCESSFUL COMPANIES.

    (a) In General.--Section 179 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
            ``(6) Special rule for successful companies.--
                    ``(A) In general.--In the case of a successful 
                company, for each taxable year beginning before 2015--
                            ``(i) Dollar limitation.--Paragraph (1) 
                        shall be applied by substituting `$250,000' for 
                        the dollar amount otherwise in effect for such 
                        taxable year.
                            ``(ii) Reduction in limitation.--Paragraph 
                        (2) shall be applied by substituting `$800,000' 
                        for the dollar amount otherwise in effect for 
                        such taxable year.
                    ``(B) Successful company.--For purposes of 
                subparagraph (A), the term `successful company' has the 
                meaning given such term by section 45S(d)(1).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2010.
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