I

106TH CONGRESS

1ST SESSION H. R. 838

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.

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 24, 1999

Mr. MORAN of Virginia (for himself, Mr. SALMON, Mr. SMITH of Washington,

Mr. WOLF, Mrs. MALONEY of New York, Mr. CONYERS, and Mr. SHOWS)

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 employers a credit against income tax for information technology training expenses paid or incurred by the employer, and for other purposes.

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

3 SECTION 1. CREDIT FOR INFORMATION TECHNOLOGY

4 TRAINING PROGRAM EXPENSES.

5 (a) IN GENERAL.—Subpart D of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of
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1 1986 (relating to business-related credits) is amended by

2 adding at the end the following:

3 ‘‘SEC. 45D. INFORMATION TECHNOLOGY TRAINING PRO4 GRAM EXPENSES.

5 ‘‘(a) GENERAL RULE.—For purposes of section 38,

6 in the case of an employer, the information technology

7 training program credit determined under this section is

8 an amount equal to 20 percent of information technology

9 training program expenses paid or incurred by the tax10 payer during the taxable year.

11 ‘‘(b) ADDITIONAL CREDIT PERCENTAGE FOR CER12 TAIN PROGRAMS.—The percentage under subsection (a)

13 shall be increased by 5 percentage points for information

14 technology training program expenses paid or incurred by

15 the taxpayer with respect to a program operated—

16 ‘‘(1) in an empowerment zone or enterprise

17 community designated under part I of subchapter U,

18 ‘‘(2) in a school district in which at least 50

19 percent of the students attending schools in such

20 district are eligible for free or reduced-cost lunches

21 under the school lunch program established under

22 the National School Lunch Act,

23 ‘‘(3) in an area designated as a disaster area by

24 the Secretary of Agriculture or by the President

25 under the Disaster Relief and Emergency Assistance
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1 Act in the taxable year or the 4 preceding taxable

2 years,

3 ‘‘(4) in a rural enterprise community designated

4 under section 766 of the Agriculture, Rural Develop5 ment, Food and Drug Administration, and Related

6 Agencies Appropriations Act, 1999,

7 ‘‘(5) in an area designated by the Secretary of

8 Agriculture as a Rural Economic Area Partnership

9 Zone, or

10 ‘‘(6) by an employer who has 200 or fewer em11 ployees for each working day in each of 20 or more

12 calendar weeks in the current or preceding calendar

13 year.

14 ‘‘(c) LIMITATION.—The amount of information tech15 nology training program expenses with respect to an indi16 vidual which may be taken into account under subsection

17 (a) for the taxable year shall not exceed $6,000.

18 ‘‘(d) INFORMATION TECHNOLOGY TRAINING PRO19 GRAM EXPENSES.—For purposes of this section—

20 ‘‘(1) IN GENERAL.—The term ‘information

21 technology training program expenses’ means ex22 penses paid or incurred by reason of the participa23 tion of the employer in any information technology

24 training program.
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1 ‘‘(2) INFORMATION TECHNOLOGY TRAINING

2 PROGRAM.—The term ‘information technology train3 ing program’ means a program—

4 ‘‘(A) for the training of computer program5 mers, systems analysts, and computer scientists

6 or engineers (as such occupations are defined

7 by the Bureau of Labor Statistics),

8 ‘‘(B) involving a partnership of—

9 ‘‘(i) employers, and

10 ‘‘(ii) State training programs, school

11 districts, university systems, or certified

12 commercial information technology train13 ing providers, and

14 ‘‘(C) at least 50 percent of the costs of

15 which are paid or incurred by the employers.

16 ‘‘(3) CERTIFIED COMMERCIAL INFORMATION

17 TECHNOLOGY TRAINING PROVIDER.—The term ‘cer18 tified commercial information technology training

19 providers’ means a private sector provider of edu20 cational products and services utilized for training in

21 information technology which is certified with re22 spect to—

23 ‘‘(A) the curriculum that is used for the

24 training, or
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1 ‘‘(B) the technical knowledge of the in2 structors of such provider,

3 by 1 or more software publishers or hardware manu4 facturers the products of which are a subject of the

5 training.

6 ‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction

7 or credit under any other provision of this chapter shall

8 be allowed with respect to information technology training

9 program expenses (determined without regard to the limi10 tation under subsection (c)).

11 ‘‘(f) ALLOCATIONS.—For purposes of this section,

12 rules similar to the rules of section 41(f)(2) shall apply.’’

13 (b) CREDIT TO BE PART OF GENERAL BUSINESS

14 CREDIT.—Section 38(b) of the Internal Revenue Code of

15 1986 (relating to current year business credit) is amended

16 by striking ‘‘plus’’ at the end of paragraph (11), by strik17 ing the period at the end of paragraph (12) and inserting

18 ‘‘, plus’’, and by adding at the end the following:

19 ‘‘(13) the information technology training pro20 gram credit determined under section 45D.’’

21 (c) NO CARRYBACKS.—Subsection (d) of section 39

22 of the Internal Revenue Code of 1986 (relating to

23 carryback and carryforward of unused credits) is amended

24 by adding at the end the following:
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1 ‘‘(9) NO CARRYBACK OF SECTION 45D CREDIT

2 BEFORE EFFECTIVE DATE.—No portion of the un3 used business credit for any taxable year which is

4 attributable to the information technology training

5 program credit determined under section 45D may

6 be carried back to a taxable year ending before the

7 date of the enactment of section 45D.’’

8 (d) CLERICAL AMENDMENT.—The table of sections

9 for subpart D of part IV of subchapter A of chapter 1

10 of the Internal Revenue Code of 1986 is amended by add11 ing at the end the following:

‘‘Sec. 45D. Information technology training program expenses.’’

12 (e) EFFECTIVE DATE.—The amendments made by

13 this section shall apply to amounts paid or incurred after

14 the date of enactment of this Act in taxable years ending

15 after such date.

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