[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4394 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 4394

  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

                             April 18, 2012

Ms. Eddie Bernice Johnson of Texas 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 
2012''.

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:
    ``(e) 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 is amended by adding at the end 
the following new section:

``SEC. 45S. 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 is amended 
by adding at the end the following new subsection:
    ``(j) 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 45S(a). In 
the case of persons treated as a single employer under section 
45S(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 (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 continuing financial education credit under 
        section 45S(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. 45S. 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, 2011.

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 45S(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 45S(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, 2013.
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