[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 2676 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                S. 2676

  To amend the Internal Revenue Code of 1986 to provide a credit for 
        employer-provided job training, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 23, 2019

 Mr. Menendez introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide a credit for 
        employer-provided job training, 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 ``Better Education and Skills Training 
for America's Workforce Act''.

SEC. 2. JOB TRAINING TAX CREDIT.

    (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. 45T. JOB TRAINING CREDIT.

    ``(a) In General.--For the purposes of section 38, the job training 
credit determined under this section for the taxable year is an amount 
equal to 100 percent of the qualified training expenses paid by the 
qualifying taxpayer during the taxable year.
    ``(b) Limitation.--The credit allowed under subsection (a) with 
respect to any eligible trainee of the qualifying taxpayer shall not 
exceed the excess (if any) of $4,000 over the aggregate credit allowed 
to such taxpayer under this section with respect to such eligible 
trainee for all prior taxable years.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified training expenses.--
                    ``(A) In general.--The term `qualified training 
                expenses' means, with respect to any eligible trainee 
                of the qualifying taxpayer, expenses paid or incurred 
                by such taxpayer for qualified tuition costs of such 
                eligible trainee.
                    ``(B) Qualified tuition costs.--The term `qualified 
                tuition costs' means costs for books and enrollment in 
                a training program at a qualified educational 
                organization, the outcome of which, if completed, will 
                provide the eligible trainee a certificate or 
                credential recognized by a State accrediting body, 
                Federal Apprenticeship Agency, or any other national 
                accrediting body recognized by the Department of 
                Education as an independent, third-party accrediting 
                body. Such training program--
                            ``(i) may include a single course, multiple 
                        courses, or a combination of work training and 
                        study, and
                            ``(ii) must be reasonably necessary for 
                        employment with the qualifying taxpayer.
                    ``(C) Qualified educational organization.--The term 
                `qualified educational organization' means any 
                institution of higher education described in section 
                101 of the Higher Education Act of 1965.
            ``(2) Qualifying taxpayer.--The term `qualifying taxpayer' 
        means any taxpayer who--
                    ``(A) with respect to any eligible trainee, is 
                training and hiring individuals for positions based in 
                the United States, and
                    ``(B) provides, with respect to any eligible 
                trainee, such documentation as required by the 
                Secretary regarding qualified training expenses and 
                proof of unemployment status as described in paragraph 
                (3)(A).
            ``(3) Eligible trainee.--The term `eligible trainee' means 
        any individual who--
                    ``(A) has been unemployed for at least 90 days 
                before the date of enrollment in a training program 
                described in paragraph (1)(B), and
                    ``(B) had not been employed by the qualifying 
                taxpayer at any time during the 2-year period preceding 
                the date on which such trainee was hired.
    ``(d) Special Rules.--
            ``(1) Denial of double benefit.--No credit shall be allowed 
        under subsection (a) for any qualified training expense for 
        which a deduction or other credit is allowed to the taxpayer 
        under any other provision of this chapter.
            ``(2) Aggregation.--For purposes of this section, all 
        persons treated as a single employer under subsection (a) or 
        (b) or section 52, or subsection (m) or (o) of section 414, 
        shall be treated as one person.
    ``(e) Election To Have Credit Not Apply.--A taxpayer may elect (at 
such time and in such manner as the Secretary may by regulations 
prescribe) to have this section not apply for any taxable year.
    ``(f) Termination.--This section shall not apply to expenses paid 
after December 31, 2030.''.
    (b) Credit To Be Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (31), 
by striking the period at the end of paragraph (32) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(33) the job training credit determined under section 
        45T(a).''.
    (c) Credit Allowed Against Alternative Minimum Tax.--Section 
38(c)(4)(B) of such Code is amended by redesignating clauses (x), (xi), 
and (xii) as clauses (xi), (xii), and (xiii), respectively, and by 
inserting after clause (ix) the following new clause:
                            ``(x) the credit determined under section 
                        45T,''.
    (d) Technical Amendment.--Section 6501(m) of the Internal Revenue 
Code of 1986 is amended by inserting ``45T(e),'' after ``45H(g),''.
    (e) 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. 45T. Job training credit.''.
    (f) Report.--Not later than January 1, 2029, the Secretary of the 
Treasury (or the Secretary's delegate) shall report to the Committee on 
Ways and Means of the House of Representatives and the Committee on 
Finance of the Senate on the economic impact of the job training credit 
under section 45T of the Internal Revenue Code of 1986 (as added under 
subsection (a)).
    (g) Effective Dates.--
            (1) In general.--The amendments made by this section shall 
        apply to expenses paid or incurred after the date of the 
        enactment of this Act, in taxable years ending after such date.
            (2) Minimum tax.--The amendments made by subsection (c) 
        shall apply to credits determined under section 45T of the 
        Internal Revenue Code of 1986 in taxable years ending after the 
        date of the enactment of this Act, and to carrybacks of such 
        credits.

SEC. 3. QUALIFIED JOB TRAINING PARTNERSHIP CREDIT.

    (a) In General.--Subpart E of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 48C the following new section:

``SEC. 48D. QUALIFIED JOB TRAINING PARTNERSHIP CREDIT.

    ``(a) In General.--For purposes of section 46, the Qualified Job 
Training Partnership credit for any taxable year is an amount equal to 
the percentage determined by the Secretary (not to exceed 100 percent) 
of the qualified investment for such taxable year with respect to any 
Qualified Job Training Partnership.
    ``(b) Qualified Investment.--
            ``(1) In general.--For purposes of subsection (a), the 
        qualified investment for any taxable year is the aggregate 
        amount of the costs paid or incurred in such taxable year for 
        expenses necessary for and directly related to the conduct of a 
        Qualified Job Training Partnership in the form of contributions 
        of cash, cash equivalent, equipment, or any combination of the 
        three where 100 percent of the investment is used for the 
        planning, implementation, or operation of a Qualified Job 
        Training Partnership and the training financed through the 
        investment must result in a type of certificate or credential 
        recognized by a State accrediting body, Federal Apprenticeship 
        Agency, or any other national accrediting body recognized by 
        the Department of Education as an independent, third-party 
        accrediting body.
            ``(2) Limitation.--The amount which is treated as qualified 
        investment for all taxable years with respect to any Qualified 
        Job Training Partnership shall not exceed the amount certified 
        by the Secretary as eligible for the credit under this section.
            ``(3) Exclusions.--The qualified investment for any taxable 
        year with respect to any Qualified Job Training Partnership 
        shall not take into account any cost for student tuition or for 
        any other expense as determined by the Secretary as appropriate 
        to carry out the purposes of this section.
            ``(4) Certain progress expenditure rules made applicable.--
        In the case of costs described in paragraph (1) that are paid 
        for property of a character subject to an allowance for 
        depreciation, rules similar to the rules of subsections (c)(4) 
        and (d) of section 46 (as in effect on the day before the date 
        of the enactment of the Revenue Reconciliation Act of 1990) 
        shall apply for purposes of this section.
    ``(c) Qualified Job Training Partnership.--
            ``(1) In general.--The term `Qualified Job Training 
        Partnership' means a formal or informal partnership between at 
        least 1 eligible private business employer and--
                    ``(A) 1 qualified educational institution, or
                    ``(B) 1 labor organization (as defined in section 
                2(5) of the National Labor Relations Act),
        where the stated goal of the partnership is to train students 
        in job-ready skills.
            ``(2) Eligible private business employer.--The term 
        `eligible private business employer' means--
                    ``(A) a business entity at least 50 percent of the 
                gross income of which is derived from qualified 
                production activities (within the meaning of section 
                199(c) (as in effect on December 31, 2017)), or
                    ``(B) any type of domestic business entity the 
                average number of employees of which for any taxable 
                year is not more than 500 employees.
            ``(3) Qualified educational organization.--The term 
        `qualified educational organization' means any educational 
        organization described in section 101 of the Higher Education 
        Act of 1965 which provides a 2-year program that culminates in 
        an associate degree.
    ``(d) Qualified Job Training Partnership Program.--
            ``(1) Establishment.--
                    ``(A) In general.--Not later than 60 days after the 
                date of the enactment of this section, the Secretary, 
                in consultation with the Secretary of Labor, shall 
                establish a Qualified Job Training Partnership program 
                to consider and award certifications for qualified 
                investments eligible for credits under this section to 
                Qualified Job Training Partnerships.
                    ``(B) Limitation.--The total amount of credits that 
                may be allocated under the program shall not exceed 
                $1,000,000,000.
            ``(2) Certification.--
                    ``(A) Application period.--Each applicant for 
                certification under this paragraph shall submit an 
                application containing such information as the 
                Secretary may require during the period beginning on 
                the date the Secretary establishes the program under 
                paragraph (1).
                    ``(B) Time for review of applications.--The 
                Secretary shall take action to approve or deny any 
                application under subparagraph (A) within 30 days of 
                the submission of such application.
                    ``(C) Multi-year applications.--An application for 
                certification under subparagraph (A) may include a 
                request for an allocation of credits for more than 1 
                year.
            ``(3) Selection criteria.--In determining the Qualified Job 
        Training Partnerships with respect to which qualified 
        investments may be certified under this section, the 
        Secretary--
                    ``(A) shall give priority to those applications 
                which demonstrate--
                            ``(i) the greatest probability that those 
                        who complete the program will secure 
                        employment,
                            ``(ii) the greatest potential for providing 
                        workers who complete the program with skills 
                        that can provide long-term job and income 
                        security,
                            ``(iii) the strongest market demand for the 
                        type of training offered,
                            ``(iv) the greatest probability that the 
                        program would create a net increase in job 
                        training opportunities,
                            ``(v) a strong need in the community for 
                        skills training,
                            ``(vi) the ability to allow nontraditional 
                        learners to complete the training,
                            ``(vii) the ability and capacity to 
                        implement the program in a reasonable period of 
                        time, and
                            ``(viii) the greatest ability to offer 
                        training programs that result in a certificate 
                        or credential (within the meaning of subsection 
                        (b)(1)) that is stackable or portable or both, 
                        and
                    ``(B) shall take into additional consideration 
                which applications show the ability to leverage 
                additional sources of capital.
            ``(4) Disclosure of allocations.--The Secretary shall, upon 
        making a certification under this subsection, publicly disclose 
        the identity of the applicant and the amount of the credit with 
        respect to such applicant.
    ``(e) Special Rules.--
            ``(1) Basis adjustment.--For purposes of this subtitle, if 
        a credit is allowed under this section for an expenditure 
        related to property of a character subject to an allowance for 
        depreciation, the basis of such property shall be reduced by 
        the amount of such credit.
            ``(2) Denial of double benefit.--
                    ``(A) Bonus depreciation.--A credit shall not be 
                allowed under this section for any investment for which 
                bonus depreciation is allowed under section 168(k).
                    ``(B) Deductions.--No deduction under this subtitle 
                shall be allowed for the portion of the expenses 
                otherwise allowable as a deduction taken into account 
                in determining the credit under this section for the 
                taxable year which is equal to the amount of the credit 
                determined for such taxable year under subsection (a) 
                attributable to such portion. This subparagraph shall 
                not apply to expenses related to property of a 
                character subject to an allowance for depreciation the 
                basis of which is reduced under paragraph (1), or which 
                are described in section 280C(g).''.
    (b) Inclusion as Part of Investment Credit.--Section 46 of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``and'' at the end of paragraph (5),
            (2) by striking the period at the end of paragraph (6) and 
        inserting ``, and'', and
            (3) by adding at the end the following new paragraph:
            ``(7) the Qualified Job Training Partnership credit.''.
    (c) Conforming Amendments.--
            (1) Section 49(a)(1)(C) of the Internal Revenue Code of 
        1986 is amended by striking ``and'' at the end of clause (iv), 
        by striking the period at the end of clause (v) and inserting 
        ``, and'', and by adding at the end the following new clause:
                            ``(vi) the basis of any property to which 
                        section 48D(e)(1) applies which is part of a 
                        Qualified Job Training Partnership under such 
                        section 48D.''.
            (2) Section 280C of such Code is amended by adding at the 
        end the following new subsection:
    ``(i) Qualified Job Training Partnership Credit.--
            ``(1) In general.--No deduction shall be allowed for that 
        portion of the qualified investment (as defined in section 
        48D(b)) otherwise allowable as a deduction for the taxable year 
        which is equal to the amount of the credit determined for such 
        taxable year under section 48D(a), reduced by--
                    ``(A) the amount disallowed as a deduction by 
                reason of section 48D(e)(2)(B), and
                    ``(B) the amount of any basis reduction under 
                section 48D(e)(1).
            ``(2) Similar rule where taxpayer capitalizes rather than 
        deducts expenses.--In the case of expenses described in 
        paragraph (1)(A) taken into account in determining the credit 
        under section 48D for the taxable year, if--
                    ``(A) the amount of the portion of the credit 
                determined under such section with respect to such 
                expenses, exceeds
                    ``(B) the amount allowable as a deduction for such 
                taxable year for such expenses (determined without 
                regard to paragraph (1)),
        the amount chargeable to capital account for the taxable year 
        for such expenses shall be reduced by the amount of such 
        excess.
            ``(3) Controlled groups.--Paragraph (3) of subsection (b) 
        shall apply for purposes of this subsection.''.
    (d) Clerical Amendment.--The table of sections for subpart E of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 48C the 
following new item:

``Sec. 48D. Qualified Job Training Partnership credit.''.
    (e) Grants for Qualified Investments in Qualified Job Training 
Partnerships in Lieu of Tax Credits.--
            (1) In general.--Upon application, the Secretary of the 
        Treasury shall, subject to the requirements of this subsection, 
        provide a grant to each person who makes a qualified investment 
        in a Qualified Job Training Partnership in an amount not to 
        exceed 100 percent of such investment.
            (2) Application.--
                    (A) In general.--At the stated election of the 
                applicant, an application for certification under 
                section 48D(d)(2) of the Internal Revenue Code of 1986 
                for a credit under such section for any taxable year 
                shall be considered to be an application for a grant 
                under paragraph (1) for such taxable year.
                    (B) Submission date.--An application for a grant 
                under paragraph (1) for any taxable year shall be 
                submitted--
                            (i) not earlier than the day after the last 
                        day of such taxable year, and
                            (ii) not later than the due date (including 
                        extensions) for filing the return of tax for 
                        such taxable year.
                    (C) Information to be submitted.--An application 
                for a grant under paragraph (1) shall include such 
                information and be in such form as the Secretary of the 
                Treasury may require to state the amount of the credit 
                allowable (but for the receipt of a grant under this 
                subsection) under section 48D for the taxable year for 
                the qualified investment with respect to which such 
                application is made.
            (3) Time for payment of grant.--
                    (A) In general.--The Secretary of the Treasury 
                shall make payment of the amount of any grant under 
                paragraph (1) during the 30-day period beginning on the 
                later of--
                            (i) the date of the application for such 
                        grant, or
                            (ii) the date the qualified investment for 
                        which the grant is being made is made.
                    (B) Regulations.--In the case of investments of an 
                ongoing nature, the Secretary of the Treasury shall 
                issue regulations to determine the date on which a 
                qualified investment shall be deemed to have been made 
                for purposes of this paragraph.
            (4) Qualified investment.--For purposes of this subsection, 
        the term ``qualified investment'' means a qualified investment 
        that is certified under section 48D(d) of the Internal Revenue 
        Code of 1986 for purposes of the credit under such section 48D.
            (5) Application of certain rules.--
                    (A) In general.--In making grants under this 
                subsection, the Secretary of the Treasury shall apply 
                rules similar to the rules of section 50 of the 
                Internal Revenue Code of 1986. In applying such rules, 
                any increase in tax under chapter 1 of such Code by 
                reason of an investment ceasing to be a qualified 
                investment shall be imposed on the person to whom the 
                grant was made.
                    (B) Special rules.--
                            (i) Recapture of excessive grant amounts.--
                        If the amount of a grant made under this 
                        subsection exceeds the amount allowable as a 
                        grant under this subsection, such excess shall 
                        be recaptured under subparagraph (A) as if the 
                        investment to which such excess portion of the 
                        grant relates had ceased to be a qualified 
                        investment immediately after such grant was 
                        made.
                            (ii) Grant information not treated as 
                        return information.--In no event shall the 
                        amount of a grant made under paragraph (1), the 
                        identity of the person to whom such grant was 
                        made, or a description of the investment with 
                        respect to which such grant was made be treated 
                        as return information for purposes of section 
                        6103 of the Internal Revenue Code of 1986.
            (6) Secretary.--Any reference in this subsection to the 
        Secretary of the Treasury shall be treated as including the 
        Secretary's delegate.
            (7) Other terms.--Any term used in this subsection which is 
        also used in section 48D of the Internal Revenue Code of 1986 
        shall have the same meaning for purposes of this subsection as 
        when used in such section.
            (8) Denial of double benefit.--No credit shall be allowed 
        under section 46(7) of the Internal Revenue Code of 1986 by 
        reason of section 48D of such Code for any investment for which 
        a grant is awarded under this subsection.
            (9) Appropriations.--There is hereby appropriated to the 
        Secretary of the Treasury such sums as may be necessary to 
        carry out this subsection.
    (f) Effective Date.--The amendments made by subsections (a) through 
(d) of this section shall apply to amounts paid or incurred after the 
date of the enactment of this Act, in taxable years beginning after 
such date.
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