JOB Tax Credit Act

Summary: Jobs and Opportunity Bonus Tax Credit Act of 2014 or the JOB Tax Credit Act - Amends the Internal Revenue Code to allow&nbsp;employers who employ not more than 500 full-time employees during the taxable year a business-related tax credit equal to the lesser of: (1) 50% of the job training program&nbsp;expenditures for a full-time&nbsp;employee participating in a qualified training program, or (2) $5,000. Terminates such credit after 2017.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Jobs and Opportunity Bonus Tax 
Credit Act of 2014'' or the ``JOB Tax Credit Act''.

SEC. 2. JOBS AND OPPORTUNITY BONUS 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. JOBS AND OPPORTUNITY BONUS CREDIT.

    ``(a) In General.--For purposes of section 38, in the case of an 
eligible employer, the jobs and opportunity bonus credit determined 
under this section with respect to any eligible employee of the 
employer is an amount equal to the lesser of--
            ``(1) 50 percent of the job training program expenditures 
        of the taxpayer with respect to such employee during the 
        taxable year, or
            ``(2) $5,000.
    ``(b) Eligible Employer.--For purposes of this section, the term 
`eligible employer' means an employer which employed an average of not 
more than 500 full-time employees during the taxable year.
    ``(c) Job Training Program Expenses.--For purposes of this 
section--
            ``(1) In general.--The term `job training program expenses' 
        means amounts paid or incurred by the employer for expenses 
        incurred by or on behalf of an eligible employee for 
        participation in a qualified training program.
            ``(2) Qualified training program.--For purposes of this 
        subsection, the term `qualified training program' means any of 
        the following written plans of study and training:
                    ``(A) An apprenticeship program registered and 
                certified with the Secretary of Labor under section 1 
                of the National Apprenticeship Act (29 U.S.C. 50).
                    ``(B) A program licensed, registered, or certified 
                by the workforce investment board or apprenticeship 
                agency or council of a State or administered in 
                compliance with apprenticeship laws of a State.
                    ``(C) A program conducted by a vocational or 
                technical education school, community college, 
                industrial or trade training organization, or labor 
                organization.
                    ``(D) A program which conforms to apprentice 
                training programs developed or administered by an 
                employer trade group or committee.
                    ``(E) An industry sponsored or administered program 
                which is clearly identified and commonly recognized.
    ``(d) Eligible Employee.--For purposes of this section, the term 
`eligible employee' means any employee of the employer, who while 
participating in the job skills training program is employed on average 
at least 40 hours of service per week.
    ``(e) Recapture of Credit for Employee Not Performing Minimum 
Service.--
            ``(1) In general.--In the case of any employee with respect 
        to whom a credit is allowed under this section and whose 
        employment is terminated by the employer (other than by reason 
        of such employee's gross misconduct) before the end of the 2-
        year period beginning on the first day of the employee's study 
        or training with respect to which a credit is allowed under 
        this section, the tax of the taxpayer under this chapter for 
        the taxable year during which such termination occurs shall be 
        increased by an amount equal to--
                    ``(A) the aggregate decrease in the credits allowed 
                under section 38 for all prior taxable years which 
                would have resulted if the job training program 
                expenses with respect to such employee had been zero, 
                multiplied by
                    ``(B) the inclusion ratio.
            ``(2) Inclusion ratio.--For purposes of this subsection, 
        the inclusion ratio is the ratio which--
                    ``(A) an amount equal to the difference of--
                            ``(i) the number of days in the 2-year 
                        period, over
                            ``(ii) the number of days such employee was 
                        employed by the employer during such 2-year 
                        period, bears to
                    ``(B) the number of days in the 2-year period.
    ``(f) Controlled Groups.--For purposes of this section, all persons 
treated as a single employer under subsection (b), (c), (m), or (o) of 
section 414 shall be treated as a single employer.
    ``(g) Termination.--The section shall not apply amounts paid or 
incurred during taxable years beginning after December 31, 2017.''.
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 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 jobs and opportunity bonus credit determined 
        under section 45S(a).''.
    (c) 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. Jobs and opportunity bonus credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.