[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 767 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 767
To provide incentives to encourage financial institutions and small
businesses to provide continuing financial education to customers,
borrowers, and employees, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 28, 2009
Ms. Eddie Bernice Johnson of Texas (for herself, Mr. McGovern, Mr.
Filner, Mr. Hare, Mr. Cummings, Mr. Cohen, and Mr. Bishop of New York)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committees on Financial Services
and Small Business, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide incentives to encourage financial institutions and small
businesses to provide continuing financial education to customers,
borrowers, and employees, 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 ``National Financial Literacy Act of
2009''.
SEC. 2. FINANCIAL LITERACY PROGRAMS.
Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C.
2903) is amended by adding at the end the following new subsection:
``(d) Direct Support for Financial Literacy Programs Taken Into
Account.--
``(1) Standards established for eligible programs.--The
appropriate Federal financial supervisory agencies shall
jointly prescribe regulations establishing--
``(A) the minimum standards required to be met by a
community-based financial literacy program in order to
be eligible for consideration under paragraph (3) as a
qualified community-based financial literacy program;
``(B) the procedures for financial institutions to
apply to the appropriate Federal financial supervisory
agency for approval of a financial literacy program as
a qualified community-based financial literacy program;
and
``(C) a requirement that financial institutions
submit a regular report on how the institution
supported and promoted financial literacy in its entire
community, including low- and moderate-income
neighborhoods.
``(2) Factors.--The regulations required under paragraph
(1) shall require at a minimum that a qualified community-based
financial literacy program--
``(A) be offered by a nonprofit budget and
counseling agency which is exempt from taxation under
section 501(c)(3) of the Internal Revenue Code of 1986;
and
``(B) include adequate education to promote
consumer understanding of consumer, economic, and
personal finance issues and concepts, including saving
for retirement, managing credit, long-term care, estate
planning and education on predatory lending, identity
theft, and financial abuse schemes.
``(3) Programs taken into account.--The direct support by a
financial institution of a qualified community-based financial
literacy program may be taken into account by the appropriate
Federal financial supervisory agency under subsection (a) in
assessing the institution's record of meeting the credit needs
of its entire community, including low- and moderate-income
neighborhoods, in such amount and to such extent as may be
provided in the joint regulations prescribed under paragraph
(1).''.
SEC. 3. CREDIT AGAINST INCOME TAX FOR SMALL BUSINESSES WHICH PROVIDE
CONTINUING FINANCIAL EDUCATION TO EMPLOYEES.
(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. 45R. SMALL BUSINESSES PROVIDING CONTINUING FINANCIAL EDUCATION
TO EMPLOYEES.
``(a) In General.--In the case of an eligible small business, the
continuing financial education credit determined under this section is
an amount equal to 35 percent of the continuing financial education
expenses paid or incurred by the taxpayer during the taxable year.
``(b) Eligible Small Business.--For purposes of this section, the
term `eligible small business' means any small business which provides
without charge a qualified continuing financial education program to
its employees throughout the taxable year.
``(c) Qualified Continuing Financial Education Program.--For
purposes of this section--
``(1) In general.--The term `qualified continuing financial
education program' means any educational program or services--
``(A) which is provided by a community-based budget
and counseling agency which is described in section
501(c)(3) and exempt from tax under section 501(a),
``(B) which promotes consumer understanding of
consumer, economic, and personal finance issues and
concepts, including saving for retirement, managing
credit, long-term care, estate planning and education
on predatory lending, identity theft, and financial
abuse schemes,
``(C) which is offered to all employees of the
taxpayer who have at least 2 weeks of service with the
employer, and
``(D) which is offered during--
``(i) at least 24 hours of each month if
the taxpayer is a corporation, or
``(ii) at least 16 hours of each month in
any other case.
``(d) Small Business.--For purposes of this section--
``(1) In general.--The term `small business' means, with
respect to any taxable year, any employer if--
``(A) such employer employed an average of at least
2 but not more than 50 employees on business days
during the most recent calendar year ending before such
taxable year, and
``(B) such employer employed at least 2 employees
on the first day of the taxable year.
``(2) Employers not in existence in preceding year.--In the
case of an employer which was not in existence throughout the
calendar year referred to in paragraph (1), the determination
under paragraph (1) shall be based on the average number of
employees that it is reasonably expected such employer will
employ on business days in the taxable year.
``(3) Special rules.--
``(A) Controlled groups.--For purposes of this
subsection, all persons treated as a single employer
under subsection (b), (c), (m), or (o) of section 414
shall be treated as 1 employer.
``(B) Predecessors.--Any reference in this
subsection to an employer shall include a reference to
any predecessor of such employer.''.
(b) Denial of Double Benefit.--Section 280C of such Code (relating
to certain expenses for which credits are allowable) is amended by
adding at the end the following new subsection:
``(g) Credit for Small Businesses Providing Continuing Financial
Education to Employees.--No deduction shall be allowed for that portion
of the expenses paid or incurred during the taxable year which is equal
to the credit determined for the taxable year under sections 45R(a). In
the case of persons treated as a single employer under section
45R(d)(3)(A), this subsection shall be applied under rules prescribed
by the Secretary similar to the rules applicable under subsections (a)
and (b) of section 52.''.
(c) Credit To Be Part of General Business Credit.--Section 38(b) of
such Code is amended by striking ``plus'' at the end of paragraph (34),
by striking the period at the end of paragraph (35) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(36) in the case of an eligible small business (as
defined in section 45R(d)), the continuing financial education
credit under section 45R(a).''.
(d) 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. 45R. Small businesses providing continuing financial education
to employees.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2008.
SEC. 4. PREFERENCE IN FEDERAL CONTRACTS, LOANS, AND OTHER ASSISTANCE
FOR SMALL BUSINESSES AND CORPORATIONS PROVIDING
CONTINUING FINANCIAL EDUCATION TO EMPLOYEES.
(a) Preference.--In the case of any Federal contract or any Federal
financial or nonfinancial assistance, an eligible small business or an
eligible corporation shall be given a preference when submitting a bid
or proposal for the contract or applying for such assistance.
(b) Definitions.--In this section:
(1) Eligible small business.--The term ``eligible small
business'' has the meaning provided in section 45R(b) of the
Internal Revenue Code of 1986.
(2) Eligible corporation.--The term ``eligible
corporation'' means any corporation--
(A) that employs 50 or more employees; and
(B) that provides without charge a qualified
continuing financial education program to its employees
throughout the taxable year.
(3) Qualified continuing financial education program.--The
term ``qualified continuing financial education program'' has
the meaning provided in section 45R(c) of the Internal Revenue
Code of 1986.
(4) Federal financial or nonfinancial assistance.--The term
``Federal financial or nonfinancial assistance'' means--
(A) all programs and activities involving Federal
financial and nonfinancial assistance and benefits, as
covered by Executive Order No. 12549 and guidelines
implementing that order; and
(B) procurement programs and activities, including
Federal contracts for the procurement of goods or
services.
(c) Effective Date.--The preference required under subsection (a)
shall be applied beginning on January 1, 2010.
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