[Congressional Record Volume 144, Number 63 (Monday, May 18, 1998)]
[Senate]
[Pages S5021-S5022]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CONRAD (for himself and Mrs. Feinstein):
  S. 2089. A bill to amend the Internal Revenue Code of 1986 to allow 
employers a credit against income tax for information technology 
training expenses paid or incurred by the employer, and for other 
purposes; to the Committee on Finance.


                   investment tax credit legislation

 Mr. CONRAD. Mr. President, today we are considering 
legislation, S. 1723, to respond to the difficulties that many American 
companies are experiencing in recruiting skilled workers to fill key 
positions in the information technology (IT) field. I commend my 
distinguished colleague from Michigan for focusing attention on this 
critical IT worker shortage issue.
  Last September, the Department of Commerce released an important 
study, ``America's New Deficit: The Shortage of Information Technology 
Workers'', alerting us to the severe shortage of information technology 
workers. Shortly after the Commerce report was released, the 
Information Technology Association of America (ITAA) released a study 
by Virginia Tech--``Help Wanted 1998: A Call For Collaborative Action 
For the New Millennium:--which estimated that there are more than 
340,000 highly skilled positions in the information technology field 
that are not filled. Moreover, the Department of Labor projected that 
our economy will require more than 130,000 information technology jobs 
in three fields--computer scientists and engineers, systems analysts, 
and computer programmers--every year for the next ten years.
  Mr. President, according to the Department of Commerce, information 
technologies are the most important enabling technologies in the 
economy today. They affect every sector and industry in the United 
States, in terms of digitally-based products, services, production and 
work processes. Thus, severe shortages of information technology 
workers could undermine U.S. innovation, productivity and 
competitiveness in world markets.
  Concern over this IT worker shortage was expressed very clearly in 
recent testimony before the Senate Judiciary Committee by Michael 
Murray, Vice President for Human Resources and Administration at 
Microsoft. Mr. Murray commented, ``As a leader in the American IT 
industry, we are deeply concerned that the current skills shortage will 
threaten our competitiveness in global markets, thereby jeopardizing 
the $1 trillion this industry contributes to the U.S. economy''. 
According to the Commerce Department, the problem is compounded by the 
fact that there is also a global shortage of skilled IT workers, in 
part the result of many developing countries like Malaysia pursuing IT-
based economic development growth plans.
  Mr. President, today we are considering legislation to amend the 
Immigration and Nationality Act to help American firms remain 
competitive in the global information technology market. Specifically, 
we are debating whether to increase the number of H1B visas that are 
available for highly skilled

[[Page S5022]]

workers to fill IT positions in the U.S. S. 1723 would increase the 
current cap on H1B visas for skilled workers from 65,000 per year to 
95,000 for the remainder of the year, and to 115,000 by fiscal year 
2000.
  From my discussions with information technology leaders, and on the 
basis the reports from the Commerce Department and ITAA regarding the 
IT worker shortage, there are compelling reasons to raise the cap on 
H1B visas. In many instances, American IT companies need the experience 
and language abilities of foreign workers to effectively compete in 
local markets. Additionally, with the IT industry's heavy reliance on 
research and development, there are times when the unique skills of a 
foreign worker contribute significantly in the development of critical 
information technology.
  Mr. President, while it may be necessary to increase the number of 
H1B visas that are available for skilled IT workers, there are 
education and training initiatives that we must also encourage the IT 
industry to undertake to make certain that opportunities are available 
for U.S. workers who want to enter the information technology field. We 
must especially focus on retraining unemployed and older displaced 
workers, and encourage new partnerships between the IT industry and 
education institutions--both at the secondary and higher education 
level--to meet this IT worker shortage challenge.
  I have been impressed, Mr. President, with the many education and 
training initiatives that the IT industry has undertaken in response to 
this shortage. I know that the IT industry is investing millions of 
dollars in education and training programs for American workers, 
especially to inform young people about the opportunities in the IT 
field. Several weeks ago, I had the privilege of visiting students in 
the Red River High School in Grand Forks, ND, who are participating in 
an excellent computer network training program sponsored by the CISCO 
Corporation. Very shortly, these young people will be able to enter the 
job market with skills that will be invaluable.
  I am also aware of several excellent partnerships that Microsoft has 
initiated with Green Thumb for older workers, and the American 
Association of Community Colleges to train students at technical and 
community colleges. There are, of course, many other excellent examples 
of ongoing partnerships in the IT industry.
  Mr. President, while these efforts are Herculean in many respects, we 
need to encourage more education initiatives to train American students 
and workers to fill IT jobs that will be so critical to maintain our 
leadership in the 21st century. For this reason, I introduced an 
amendment to S. 1133 on March 17, 1998, to increase the number of 
partnerships between the IT industry, and education institutions and 
job training programs by providing a tax credit for employers who offer 
information technology training for individuals.
  The credit would be an amount equal to 20 percent of information 
technology training program expenses, however, not to exceed $6,000 in 
a taxable year. The value of the credit would increase by 5 percentage 
points if the IT training program is operated in an empowerment zone or 
enterprise community, in a school district in which at least 50 percent 
of the students in the district participate in the school lunch 
program, or in an area designated as a disaster zone by the President 
or Secretary of Agriculture. I am very pleased that this initiative has 
been endorsed by the Information Technology Association of America.
  Mr. President, although S. 1723 may not be the appropriate measure to 
offer IT training tax credit legislation, I believe it is important to 
call attention to this legislation to emphasize the need for more 
education and training opportunities for American workers in the IT 
field. Therefore, I am today introducing my IT training tax credit 
legislation, and I hope that my colleagues who are supporting an 
increase in the H1B visa cap for foreign workers, will also support 
this provision to train and educate American workers for IT positions. 
We have an obligation to make certain that opportunities in this 
exciting field are available to American workers and students. I 
welcome cosponsors of this legislation, and I ask unanimous consent Mr. 
President, that the text of this legislation be included in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2089

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. CREDIT FOR INFORMATION TECHNOLOGY TRAINING PROGRAM 
                   EXPENSES.

       (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. 45D. INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.

       ``(a) General Rule.--For purposes of section 38, in the 
     case of an employer, the information technology training 
     program credit determined under this section is an amount 
     equal to 20 percent of information technology training 
     program expenses paid or incurred by the taxpayer during the 
     taxable year.
       ``(b) Additional Credit Percentage for Certain Programs.--
     The percentage under subsection (a) shall be increased by 5 
     percentage points for information technology training program 
     expenses paid or incurred by the taxpayer with respect to a 
     program operated in--
       ``(1) an empowerment zone or enterprise community 
     designated under part I of subchapter U,
       ``(2) a school district in which a least 50 percent of the 
     students attending schools in such district are eligible for 
     free or reduced-cost lunches under the school lunch program 
     established under the National School Lunch Act, or
       ``(3) an area designated as a disaster area by the 
     Secretary of Agriculture or by the President under the 
     Disaster Relief and Emergency Assistance Act in the taxable 
     year or the 4 preceding taxable years.
       ``(c) Limitation.--The amount of information technology 
     training program expenses with respect to an employee which 
     may be taken into account under subsection (a) for the 
     taxable year shall not exceed $6,000.
       ``(d) Information Technology Training Program Expenses.--
     For purposes of this section--
       ``(1) In general.--The term `information technology 
     training program expenses' means expenses paid or incurred by 
     reason of the participation of the employer in any 
     information technology training program.
       ``(2) Information technology training program.--The term 
     `information technology training program' means a program--
       ``(A) for the training of computer programmers, systems 
     analysts, and computer scientists or engineers (as such 
     occupations are defined by the Bureau of Labor Statistics),
       ``(B) involving a partnership of--
       ``(i) employers, and
       ``(ii) State training programs, school districts, or 
     university systems, and
       ``(C) at least 50 percent of the costs of which is paid or 
     incurred by the employers.
       ``(e) Denial of Double Benefit.--No deduction or credit 
     under any other provision of this chapter shall be allowed 
     with respect to information technology training program 
     expenses (determined without regard to the limitation under 
     subsection (c)).
       ``(f) Allocations.--For purposes of this section, rules 
     similar to the rules of section 41(f)(2) shall apply.''
       (b) Credit To Be Part of General Business Credit.--Section 
     38(b) of the Internal Revenue Code of 1986 (relating to 
     current year business credit) is amended by striking ``plus'' 
     at the end of paragraph (11), by striking the period at the 
     end of paragraph (12) and inserting ``, plus'', and by adding 
     at the end the following new paragraph:
       ``(13) the information technology training program credit 
     determined under section 45D.''
       (c) No Carrybacks.--Subsection (d) of section 39 of the 
     Internal Revenue Code of 1986 (relating to carryback and 
     carryforward of unused credits) is amended by adding at the 
     end the following new paragraph:
       ``(9) No carryback of section 45D credit before effective 
     date.--No portion of the unused business credit for any 
     taxable year which is attributable to the information 
     technology training program credit determined under section 
     45D may be carried back to a taxable year ending before the 
     date of the enactment of section 45D.''
       (d) Clerical Amendment.--The table of sections for 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 item:

``Sec. 45D. Information technology training program expenses.''
       (e) Effective Date.--The amendments made by this section 
     shall apply to amounts paid or incurred after the date of the 
     enactment of this Act in taxable years ending after such 
     date.

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