I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘USA Workforce Invest5 ment Act’’. 

6 SEC. 2. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS 

7 TO WORKFORCE DEVELOPMENT OR APPREN8 TICESHIP TRAINING PROGRAMS. 

9 (a) ALLOWANCE OF CREDIT.— 


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1 (1) IN GENERAL.—Subpart A of part IV of sub2 chapter A of chapter 1 of the Internal Revenue Code 

3 of 1986 is amended by inserting after section 25E 

4 the following new section: 

5 ‘‘SEC. 25F. CONTRIBUTIONS TO WORKFORCE DEVELOP6 MENT AND APPRENTICESHIP TRAINING PRO7 GRAMS. 

8 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in9 dividual, there shall be allowed as a credit against the tax 

10 imposed by this chapter for the taxable year an amount 

11 equal to the aggregate amount of qualified contributions 

12 made by the taxpayer during the year. 

13 ‘‘(b) LIMITATIONS.— 

14 ‘‘(1) IN GENERAL.—The credit allowed under 

15 subsection (a) to any taxpayer for any taxable year 

16 shall not exceed an amount equal to the lesser of— 

17 ‘‘(A) 25 percent of the sum of the amounts 

18 described in paragraphs (1) and (2) of section 

19 26(a) for such taxable year, or 

20 ‘‘(B) $150,000. 

21 ‘‘(2) ALLOCATION OF VOLUME CAP.—The credit 

22 allowed under subsection (a) to any taxpayer for any 

23 taxable year shall not exceed the amount of the vol24 ume cap allocated by the Secretary to such taxpayer 

25 under subsection (f) with respect to qualified conVerDate Sep 11 2014 22:05 Sep 06, 2024 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H9461.IH H9461

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1 tributions made by the taxpayer during the taxable 

2 year. 

3 ‘‘(3) REDUCTION BASED ON STATE CREDIT.— 

4 The amount allowed as a credit under subsection (a) 

5 for a taxable year shall be reduced by the amount 

6 allowed as a credit on any State tax return of the 

7 taxpayer for qualified contributions made by the tax8 payer during the taxable year. 

9 ‘‘(c) DEFINITIONS.—For purposes of this section— 

10 ‘‘(1) QUALIFIED CONTRIBUTION.—The term 

11 ‘qualified contribution’ means a charitable contribu12 tion (as defined by section 170(c)) to a workforce 

13 development or apprenticeship training organization 

14 in the form of cash or marketable securities if such 

15 contribution is designated by such organization to be 

16 used only for the purpose of providing workforce de17 velopment or apprenticeship training programs. 

18 ‘‘(2) WORKFORCE DEVELOPMENT OR APPREN19 TICESHIP TRAINING ORGANIZATION.—The term 

20 ‘workforce development or apprenticeship training 

21 organization’ means any organization which— 

22 ‘‘(A) is described in section 501(c)(3), is 

23 exempt from tax under section 501(a), and is 

24 not a private foundation, and 


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1 ‘‘(B) is included on a list of providers pre2 pared under subsection (d) of section 122 of the 

3 Workforce Innovation and Opportunity Act (29 

4 U.S.C. 3152) by reason of having been deter5 mined to be eligible to offer a program under 

6 such section. 

7 ‘‘(3) WORKFORCE DEVELOPMENT OR APPREN8 TICESHIP TRAINING PROGRAM.—The term ‘work9 force development or apprenticeship training pro10 gram’ means a program to provide training services 

11 (within the meaning of section 134(c)(3) of the 

12 Workforce Innovation and Opportunity Act (29 

13 U.S.C. 3174(c)(3))). 

14 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—Any qualified 

15 contribution for which a credit is allowed under this sec16 tion shall not be taken into account as a charitable con17 tribution for purposes of section 170. 

18 ‘‘(e) CARRYFORWARD OF UNUSED CREDIT.— 

19 ‘‘(1) IN GENERAL.—If the credit allowable 

20 under subsection (a) for any taxable year exceeds 

21 the limitation imposed by section 26(a) for such tax22 able year reduced by the sum of the credits allowable 

23 under this subpart (other than this section, section 

24 23, and section 25D), such excess shall be carried to 


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1 the succeeding taxable year and added to the credit 

2 allowable under subsection (a) for such taxable year. 

3 ‘‘(2) LIMITATION.—No credit may be carried 

4 forward under this subsection to any taxable year 

5 following the fifth taxable year after the taxable year 

6 in which the credit arose. For purposes of the pre7 ceding sentence, credits shall be treated as used on 

8 a first-in first-out basis. 

9 ‘‘(f) VOLUME CAP.— 

10 ‘‘(1) IN GENERAL.—The volume cap applicable 

11 under this section shall be $5,000,000,000 for each 

12 of calendar years 2025 through 2028, and zero for 

13 calendar years thereafter. Such amount shall be allo14 cated by the Secretary as provided in paragraph (2) 

15 to taxpayers with respect to qualified contributions 

16 made by such taxpayers, except that 10 percent of 

17 such amount shall be divided evenly among the 

18 States, and shall be available with respect to individ19 uals residing in such States. 

20 ‘‘(2) FIRST-COME, FIRST-SERVE.—For purposes 

21 of applying the volume cap under this section, such 

22 volume cap for any calendar year shall be allocated 

23 by the Secretary on a first-come, first-serve basis, as 

24 determined based on the time (during such calendar 

25 year) at which the taxpayer made the qualified conVerDate Sep 11 2014 22:05 Sep 06, 2024 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H9461.IH H9461

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1 tribution with respect to which the allocation is 

2 made. The Secretary shall not make any allocation 

3 of volume cap for any calendar year after December 

4 31 of such calendar year. 

5 ‘‘(3) REAL-TIME INFORMATION.—For purposes 

6 of this section, the Secretary shall develop a system 

7 to track the amount of qualified contributions made 

8 during the calendar year for which a credit may be 

9 claimed under this section, with such information to 

10 be updated in real time. 

11 ‘‘(4) ANNUAL INCREASES.— 

12 ‘‘(A) IN GENERAL.—In the case of the cal13 endar year after a high use calendar year, the 

14 dollar amount otherwise in effect under sub15 section (a) for such calendar year shall be equal 

16 to 105 percent of the dollar amount in effect 

17 for such high use calendar year. 

18 ‘‘(B) HIGH USE CALENDAR YEAR.—For 

19 purposes of this subsection, the term ‘high use 

20 calendar year’ means any calendar year for 

21 which 90 percent or more of the volume cap in 

22 effect for such calendar year under subsection 

23 (a) is allocated to taxpayers. 

24 ‘‘(C) PREVENTION OF DECREASES IN AN25 NUAL VOLUME CAP.—The volume cap in effect 


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1 under subsection (a) for any calendar year shall 

2 not be less than the volume cap in effect under 

3 such subsection for the preceding calendar year. 

4 ‘‘(D) PUBLICATION OF ANNUAL VOLUME

5 CAP.—The Secretary shall make publicly avail6 able the dollar amount of the volume cap in ef7 fect under subsection (a) for each calendar 

8 year. 

9 ‘‘(5) STATES.—For purposes of this subsection, 

10 the term ‘State’ includes the District of Columbia.’’. 

11 (2) CONFORMING AMENDMENTS.— 

12 (A) Section 25(e)(1)(C) of such Code is 

13 amended by striking ‘‘and 25D’’ and inserting 

14 ‘‘25D, and 25F’’. 

15 (B) The table of sections for subpart A of 

16 part IV of subchapter A of chapter 1 of such 

17 Code is amended by inserting after the item re18 lating to section 25E the following new item: 

‘‘Sec. 25F. Contributions to workforce development and apprenticeship training 

programs.’’. 

19 (b) EFFECTIVE DATE.—The amendments made by 

20 this subsection shall apply to taxable years ending after 

21 December 31, 2024. 

Æ 


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