To encourage small businesses to provide continuing financial education to their employees by providing a credit against income tax to cover a portion of the costs of providing that education and by giving such businesses and corporations providing such financial education preferential status when applying for Federal contracts, loans, and other assistance.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Employers Financial Literacy Act''.

SEC. 2. CREDIT AGAINST INCOME TAX FOR SMALL BUSINESSES WHICH PROVIDE 
              CONTINUING FINANCIAL EDUCATION TO EMPLOYEES.

    (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. 45O. SMALL BUSINESSES PROVIDING CONTINUING FINANCIAL EDUCATION 
              TO EMPLOYEES.

    ``(a) In General.--In the case of an eligible small business, the 
continuing financial education credit determined under this section is 
an amount equal to 35 percent of the continuing financial education 
expenses paid or incurred by the taxpayer during the taxable year.
    ``(b) Eligible Small Business.--For purposes of this section, the 
term `eligible small business' means any small business which provides 
without charge a qualified continuing financial education program to 
its employees throughout the taxable year.
    ``(c) Qualified Continuing Financial Education Program.--For 
purposes of this section--
            ``(1) In general.--The term `qualified continuing financial 
        education program' means any educational program or services--
                    ``(A) which is provided by a community-based budget 
                and counseling agency which is described in section 
                501(c)(3) and exempt from tax under section 501(a),
                    ``(B) which promotes consumer understanding of 
                consumer, economic, and personal finance issues and 
                concepts, including saving for retirement, managing 
                credit, long-term care, estate planning and education 
                on predatory lending, identity theft, and financial 
                abuse schemes,
                    ``(C) which is offered to all employees of the 
                taxpayer who have at least 2 weeks of service with the 
                employer, and
                    ``(D) which is offered during--
                            ``(i) at least 24 hours of each month if 
                        the taxpayer is a corporation, or
                            ``(ii) at least 16 hours of each month in 
                        any other case.
    ``(d) Small Business.--For purposes of this section--
            ``(1) In general.--The term `small business' means, with 
        respect to any taxable year, any employer if--
                    ``(A) such employer employed an average of at least 
                2 but not more than 50 employees on business days 
                during the most recent calendar year ending before such 
                taxable year, and
                    ``(B) such employer employed at least 2 employees 
                on the first day of the taxable year.
            ``(2) Employers not in existence in preceding year.--In the 
        case of an employer which was not in existence throughout the 
        calendar year referred to in paragraph (1), the determination 
        under paragraph (1) shall be based on the average number of 
        employees that it is reasonably expected such employer will 
        employ on business days in the taxable year.
            ``(3) Special rules.--
                    ``(A) Controlled groups.--For purposes of this 
                subsection, all persons treated as a single employer 
                under subsection (b), (c), (m), or (o) of section 414 
                shall be treated as 1 employer.
                    ``(B) Predecessors.--Any reference in this 
                subsection to an employer shall include a reference to 
                any predecessor of such employer.''.
    (b) Denial of Double Benefit.--Section 280C of such Code (relating 
to certain expenses for which credits are allowable) is amended by 
adding at the end the following new subsection:
    ``(f) Credit for Small Businesses Providing Continuing Financial 
Education to Employees.--No deduction shall be allowed for that portion 
of the expenses paid or incurred during the taxable year which is equal 
to the credit determined for the taxable year under sections 45O(a). In 
the case of persons treated as a single employer under section 
45O(d)(3)(A), this subsection shall be applied under rules prescribed 
by the Secretary similar to the rules applicable under subsections (a) 
and (b) of section 52.''.
    (c) Credit To Be Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (30), 
by striking the period at the end of paragraph (31) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(32) in the case of an eligible small business (as 
        defined in section 45O(d)), the continuing financial education 
        credit under section 40O(a).''.
    (d) 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. 40O. Small businesses providing continuing financial education 
                            to employees.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.

SEC. 3. PREFERENCE IN FEDERAL CONTRACTS, LOANS, AND OTHER ASSISTANCE 
              FOR SMALL BUSINESSES AND CORPORATIONS PROVIDING 
              CONTINUING FINANCIAL EDUCATION TO EMPLOYEES.

    (a) Preference.--In the case of any Federal contract or any Federal 
financial or nonfinancial assistance, an eligible small business or an 
eligible corporation shall be given a preference when submitting a bid 
or proposal for the contract or applying for such assistance.
    (b) Definitions.--In this section:
            (1) Eligible small business.--The term ``eligible small 
        business'' has the meaning provided in section 45O(b) of the 
        Internal Revenue Code of 1986.
            (2) Eligible corporation.--The term ``eligible 
        corporation'' means any corporation--
                    (A) that employs 50 or more employees; and
                    (B) that provides without charge a qualified 
                continuing financial education program to its employees 
                throughout the taxable year.
            (3) Qualified continuing financial education program.--The 
        term ``qualified continuing financial education program'' has 
        the meaning provided in section 45O(c) of the Internal Revenue 
        Code of 1986.
            (4) Federal financial or nonfinancial assistance.--The term 
        ``Federal financial or nonfinancial assistance'' means--
                    (A) all programs and activities involving Federal 
                financial and nonfinancial assistance and benefits, as 
                covered by Executive Order No. 12549 and guidelines 
                implementing that order; and
                    (B) procurement programs and activities, including 
                Federal contracts for the procurement of goods or 
                services.
    (c) Effective Date.--The preference required under subsection (a) 
shall be applied beginning on January 1, 2010.

Summary: Employers Financial Literacy Act - Amends the Internal Revenue Code to allow small business taxpayers a tax credit for up to 35 of the costs of providing continuing financial education to their employees. Grants a preference to such small businesses in the awarding of federal contracts or assistance.