[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[Senate]
[Pages S7623-S7625]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
SA 1778. Mr. MENENDEZ submitted an amendment intended to be proposed
by him to the bill H.R. 1, to provide for reconciliation pursuant to
titles II and V of the concurrent resolution on the budget for fiscal
year 2018; which was ordered to lie on the table; as follows:
At the appropriate place, insert the following:
SEC. __. 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. 45S. 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
[[Page S7624]]
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 educational
organization 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, 2028.''.
(b) Credit To Be Part of General Business Credit.--
Subsection (b) of section 38 of the Internal Revenue Code of
1986 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 job training credit determined under section
45S(a).''.
(c) Credit Allowed Against Alternative Minimum Tax.--
Section 38(c)(4)(B) of the Internal Revenue Code of 1986 is
amended by redesignating clauses (ix), (x), and (xi) as
clauses (x), (xi), and (xii), respectively, and by inserting
after clause (viii) the following new clause:
``(ix) the credit determined under section 45S,''.
(d) Technical Amendment.--Section 6501(m) of the Internal
Revenue Code of 1986 is amended by inserting ``45S(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. 45S. Job training credit.''.
(f) Report.--Not later than January 1, 2027, 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
45S 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 45S 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. __. 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 48D the following new section:
``SEC. 48E. 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)), 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, and
``(vii) the ability and capacity to implement the program
in a reasonable period of time, and
[[Page S7625]]
``(B) shall take into additional consideration which
applications show--
``(i) the ability to leverage additional sources of
capital, and
``(ii) 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.
``(4) Review and additional allocation.--
``(A) Review.--Not later than 1 year after the date of
enactment of this section, the Secretary shall review the
credits allocated under this section as of such date.
``(B) Additional allocation.--If the Secretary determines
at the time of the review that credits under this section are
available for allocation pursuant to the requirements set
forth in paragraph (2), the Secretary is authorized to
allocate such available credits through the conduct of an
additional program or programs for applications for
certification.
``(5) 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), 1400L(b)(1), or
1400N(d)(1).
``(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--
(A) by striking ``and'' at the end of clause (v);
(B) by striking the period at the end of clause (vi) and
inserting ``, and''; and
(C) by adding at the end the following new clause:
``(vii) the basis of any property to which paragraph (1) of
section 48E(e) applies which is part of a Qualified Job
Training Partnership under such section 48E.''.
(2) Section 280C of such Code is amended by adding at the
end the following new subsection:
``(j) Qualified Job Training Partnership Credit.--
``(1) In general.--No deduction shall be allowed for that
portion of the qualified investment (as defined in section
48E(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 48E(a), reduced by--
``(A) the amount disallowed as a deduction by reason of
section 48E(e)(2)(B), and
``(B) the amount of any basis reduction under section
48E(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 48E 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 48D the following new item:
``Sec. 48E. 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 48E(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 48E
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 48E(d) of the
Internal Revenue Code of 1986 for purposes of the credit
under such section 48E.
(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 48E 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 48E 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.
______