[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9461 Introduced in House (IH)]

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118th CONGRESS
  2d Session
                                H. R. 9461

 To amend the Internal Revenue Code of 1986 to allow a credit against 
   tax for charitable donations to nonprofit organizations providing 
                          workforce training.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 6, 2024

 Mr. Smucker 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 a credit against 
   tax for charitable donations to nonprofit organizations providing 
                          workforce training.

    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 ``USA Workforce Investment Act''.

SEC. 2. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO WORKFORCE 
              DEVELOPMENT OR APPRENTICESHIP TRAINING PROGRAMS.

    (a) Allowance of Credit.--
            (1) In general.--Subpart A of part IV of subchapter A of 
        chapter 1 of the Internal Revenue Code of 1986 is amended by 
        inserting after section 25E the following new section:

``SEC. 25F. CONTRIBUTIONS TO WORKFORCE DEVELOPMENT AND APPRENTICESHIP 
              TRAINING PROGRAMS.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to the aggregate amount of 
qualified contributions made by the taxpayer during the year.
    ``(b) Limitations.--
            ``(1) In general.--The credit allowed under subsection (a) 
        to any taxpayer for any taxable year shall not exceed an amount 
        equal to the lesser of--
                    ``(A) 25 percent of the sum of the amounts 
                described in paragraphs (1) and (2) of section 26(a) 
                for such taxable year, or
                    ``(B) $150,000.
            ``(2) Allocation of volume cap.--The credit allowed under 
        subsection (a) to any taxpayer for any taxable year shall not 
        exceed the amount of the volume cap allocated by the Secretary 
        to such taxpayer under subsection (f) with respect to qualified 
        contributions made by the taxpayer during the taxable year.
            ``(3) Reduction based on state credit.--The amount allowed 
        as a credit under subsection (a) for a taxable year shall be 
        reduced by the amount allowed as a credit on any State tax 
        return of the taxpayer for qualified contributions made by the 
        taxpayer during the taxable year.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified contribution.--The term `qualified 
        contribution' means a charitable contribution (as defined by 
        section 170(c)) to a workforce development or apprenticeship 
        training organization in the form of cash or marketable 
        securities if such contribution is designated by such 
        organization to be used only for the purpose of providing 
        workforce development or apprenticeship training programs.
            ``(2) Workforce development or apprenticeship training 
        organization.--The term `workforce development or 
        apprenticeship training organization' means any organization 
        which--
                    ``(A) is described in section 501(c)(3), is exempt 
                from tax under section 501(a), and is not a private 
                foundation, and
                    ``(B) is included on a list of providers prepared 
                under subsection (d) of section 122 of the Workforce 
                Innovation and Opportunity Act (29 U.S.C. 3152) by 
                reason of having been determined to be eligible to 
                offer a program under such section.
            ``(3) Workforce development or apprenticeship training 
        program.--The term `workforce development or apprenticeship 
        training program' means a program to provide training services 
        (within the meaning of section 134(c)(3) of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3174(c)(3))).
    ``(d) Denial of Double Benefit.--Any qualified contribution for 
which a credit is allowed under this section shall not be taken into 
account as a charitable contribution for purposes of section 170.
    ``(e) Carryforward of Unused Credit.--
            ``(1) In general.--If the credit allowable under subsection 
        (a) for any taxable year exceeds the limitation imposed by 
        section 26(a) for such taxable year reduced by the sum of the 
        credits allowable under this subpart (other than this section, 
        section 23, and section 25D), such excess shall be carried to 
        the succeeding taxable year and added to the credit allowable 
        under subsection (a) for such taxable year.
            ``(2) Limitation.--No credit may be carried forward under 
        this subsection to any taxable year following the fifth taxable 
        year after the taxable year in which the credit arose. For 
        purposes of the preceding sentence, credits shall be treated as 
        used on a first-in first-out basis.
    ``(f) Volume Cap.--
            ``(1) In general.--The volume cap applicable under this 
        section shall be $5,000,000,000 for each of calendar years 2025 
        through 2028, and zero for calendar years thereafter. Such 
        amount shall be allocated by the Secretary as provided in 
        paragraph (2) to taxpayers with respect to qualified 
        contributions made by such taxpayers, except that 10 percent of 
        such amount shall be divided evenly among the States, and shall 
        be available with respect to individuals residing in such 
        States.
            ``(2) First-come, first-serve.--For purposes of applying 
        the volume cap under this section, such volume cap for any 
        calendar year shall be allocated by the Secretary on a first-
        come, first-serve basis, as determined based on the time 
        (during such calendar year) at which the taxpayer made the 
        qualified contribution with respect to which the allocation is 
        made. The Secretary shall not make any allocation of volume cap 
        for any calendar year after December 31 of such calendar year.
            ``(3) Real-time information.--For purposes of this section, 
        the Secretary shall develop a system to track the amount of 
        qualified contributions made during the calendar year for which 
        a credit may be claimed under this section, with such 
        information to be updated in real time.
            ``(4) Annual increases.--
                    ``(A) In general.--In the case of the calendar year 
                after a high use calendar year, the dollar amount 
                otherwise in effect under subsection (a) for such 
                calendar year shall be equal to 105 percent of the 
                dollar amount in effect for such high use calendar 
                year.
                    ``(B) High use calendar year.--For purposes of this 
                subsection, the term `high use calendar year' means any 
                calendar year for which 90 percent or more of the 
                volume cap in effect for such calendar year under 
                subsection (a) is allocated to taxpayers.
                    ``(C) Prevention of decreases in annual volume 
                cap.--The volume cap in effect under subsection (a) for 
                any calendar year shall not be less than the volume cap 
                in effect under such subsection for the preceding 
                calendar year.
                    ``(D) Publication of annual volume cap.--The 
                Secretary shall make publicly available the dollar 
                amount of the volume cap in effect under subsection (a) 
                for each calendar year.
            ``(5) States.--For purposes of this subsection, the term 
        `State' includes the District of Columbia.''.
            (2) Conforming amendments.--
                    (A) Section 25(e)(1)(C) of such Code is amended by 
                striking ``and 25D'' and inserting ``25D, and 25F''.
                    (B) The table of sections for subpart A of part IV 
                of subchapter A of chapter 1 of such Code is amended by 
                inserting after the item relating to section 25E the 
                following new item:

``Sec. 25F. Contributions to workforce development and apprenticeship 
                            training programs.''.
    (b) Effective Date.--The amendments made by this subsection shall 
apply to taxable years ending after December 31, 2024.
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