I 

116TH CONGRESS 

2D SESSION H. R. 7032 

To amend the Internal Revenue Code of 1986 to establish a tax credit 

for training services received by individuals who are unemployed as 

a result of the coronavirus pandemic. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 27, 2020 

Mr. KILMER (for himself, Mrs. BROOKS of Indiana, Ms. SEWELL of Alabama, 

and Mr. THOMPSON of Pennsylvania) 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 establish 

a tax credit for training services received by individuals 

who are unemployed as a result of the coronavirus pandemic. 

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 ‘‘Skills Renewal Act’’. 

5 SEC. 2. ESTABLISHMENT OF SKILLS TRAINING CREDIT. 

6 (a) IN GENERAL.—Subpart C of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by inserting after section 36 the fol2 lowing new section: 

3 ‘‘SEC. 36A. SKILLS TRAINING CREDIT. 

4 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an eli5 gible individual, there shall be allowed as a credit against 

6 the tax imposed by this subtitle for the taxable year an 

7 amount equal to the lesser of— 

8 ‘‘(1) the amount of expenses paid or incurred 

9 by such individual during such taxable year for 

10 qualified training services which are provided by a 

11 qualified entity, or 

12 ‘‘(2) an amount equal to— 

13 ‘‘(A) $4,000, minus 

14 ‘‘(B) an amount equal to the sum of any 

15 credits allowed to the taxpayer under this sec16 tion for any preceding taxable year. 

17 ‘‘(b) DEFINITIONS.—For purposes of this section— 

18 ‘‘(1) ELIGIBLE INDIVIDUAL.— 

19 ‘‘(A) IN GENERAL.—The term ‘eligible in20 dividual’ means an individual who— 

21 ‘‘(i) became unemployed or furloughed 

22 during calendar year 2020 but was other23 wise able to work and available for work 

24 within the meaning of applicable State law 

25 (as defined in section 205 of the FederalVerDate Sep 11 2014 19:03 Jun 18, 2020 Jkt 099200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H7032.IH H7032

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1 State Extended Unemployment Compensa2 tion Act of 1970 (26 U.S.C. 3304 note)), 

3 ‘‘(ii) during the period in which any 

4 qualified training service is provided to 

5 such individual by a qualified entity— 

6 ‘‘(I) is not employed and has ap7 plied for or is receiving compensation 

8 (as defined in section 3306(h)), in9 cluding pandemic emergency unem10 ployment compensation under section 

11 2107 of subtitle A of title II of divi12 sion A of the CARES Act, and 

13 ‘‘(II) informs such entity of their 

14 intent to claim the credit allowed 

15 under subsection (a) with respect to 

16 such service. 

17 ‘‘(B) EXCLUSION.—For purposes of sub18 paragraph (A), the term ‘eligible individual’ 

19 shall not include an individual whose employer 

20 has reduced their hours of work and who re21 ceives compensation pursuant to a short-time 

22 compensation program (as defined in section 

23 3306(v)). 

24 ‘‘(2) QUALIFIED ENTITY.—The term ‘qualified 

25 entity’ means an entity that is— 


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1 ‘‘(A) a provider included on a State list de2 scribed in section 122(d) of the Workforce In3 novation and Opportunity Act (29 U.S.C. 

4 3152(d)); or 

5 ‘‘(B) a provider of qualified training serv6 ices that has been precertified by the Secretary 

7 of Labor under section 3 of the Skills Renewal 

8 Act. 

9 ‘‘(3) QUALIFIED TRAINING SERVICE.—The term 

10 ‘qualified training service’ means a course or pro11 gram of study that— 

12 ‘‘(A) is included on a list described in sec13 tion 122(d) of the Workforce Innovation and 

14 Opportunity Act (29 U.S.C. 3152(d)) for a 

15 State, or 

16 ‘‘(B) is a course or program of study relat17 ing to computer science, technology, or another 

18 high-need area, such as a coding boot camp, 

19 that has been precertified by the Secretary of 

20 Labor under section 3 of the Skills Renewal 

21 Act. 

22 ‘‘(c) COORDINATION WITH AMERICAN OPPORTUNITY

23 AND LIFETIME LEARNING CREDITS.—For purposes of 

24 subsection (a)(1), the amount of expenses paid or incurred 


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1 by an eligible individual during such taxable year for quali2 fied training services shall be reduced— 

3 ‘‘(1) as provided in section 25A(g)(2), and 

4 ‘‘(2) by the amount of such expenses which 

5 were taken into account in determining the credit al6 lowed to the taxpayer or any other person under sec7 tion 25A. 

8 ‘‘(d) REGULATIONS.—The Secretary shall prescribe 

9 such regulations as may be necessary to carry out the pro10 visions of this section. 

11 ‘‘(e) TERMINATION.—This section shall not apply to 

12 expenses paid or incurred during taxable years beginning 

13 after December 31, 2021.’’. 

14 (b) INFORMATION REPORTING RELATING TO QUALI15 FIED TRAINING SERVICES.—Subpart B of part III of sub16 chapter A of chapter 61 of the Internal Revenue Code of 

17 1986 is amended by adding at the end the following new 

18 section: 

19 ‘‘SEC. 6050Z. RETURNS RELATING TO QUALIFIED TRAINING 

20 SERVICES. 

21 ‘‘(a) REQUIREMENT OF REPORTING.—Any qualified 

22 entity which, in the course of a trade or business and for 

23 any calendar year, receives payments from any electing in24 dividual with respect to qualified training services pro25 vided by such entity shall make the return described in 


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1 subsection (b) with respect to each such individual at such 

2 time as the Secretary may by regulations prescribe. 

3 ‘‘(b) RETURN.—A return is described in this sub4 section if such return— 

5 ‘‘(1) is in such form as the Secretary may pre6 scribe, and 

7 ‘‘(2) contains— 

8 ‘‘(A) the name, address, and TIN of each 

9 electing individual from whom a payment de10 scribed in subsection (a) was received during 

11 the calendar year, 

12 ‘‘(B) the aggregate amount of such pay13 ments received by such individual during such 

14 calendar year and the date and amount of each 

15 such payment, and 

16 ‘‘(C) such other information as the Sec17 retary may require. 

18 ‘‘(c) ELECTING INDIVIDUAL.—The term ‘electing in19 dividual’ means an individual who has indicated to the 

20 qualified entity their intention to claim the credit allowed 

21 under section 36A with respect to the qualified training 

22 services provided by such entity. 

23 ‘‘(d) STATEMENT TO BE FURNISHED TO INDIVID24 UALS WITH RESPECT TO WHOM INFORMATION IS RE25 QUIRED.— 


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1 ‘‘(1) IN GENERAL.—Every qualified entity re2 quired to make a return under subsection (a) shall 

3 furnish to each electing individual whose name is re4 quired to be set forth in such return a written state5 ment showing— 

6 ‘‘(A) the name, address, and phone num7 ber of the information contact of the qualified 

8 entity required to make such a return, and 

9 ‘‘(B) the aggregate amount of payments 

10 made by the individual to the qualified entity 

11 required to be shown on the return. 

12 ‘‘(2) FURNISHING OF INFORMATION.—The 

13 written statement required under paragraph (1) 

14 shall be furnished to the individual on or before Jan15 uary 31 of the year following the calendar year for 

16 which the return under subsection (a) is required to 

17 be made. 

18 ‘‘(e) DEFINITIONS.—The terms ‘qualified entity’ and 

19 ‘qualified training services’ have the same meaning given 

20 such terms under section 36A(b). 

21 ‘‘(f) REGULATIONS AND GUIDANCE.—The Secretary 

22 may prescribe such regulations and other guidance as may 

23 be appropriate or necessary to carry out the purpose of 

24 this section.’’. 

25 (c) CLERICAL AMENDMENTS.— 


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1 (1) Section 6211(b)(4)(A) of the Internal Rev2 enue Code of 1986 is amended by inserting ‘‘36A,’’ 

3 after ‘‘36,’’. 

4 (2) The table of sections for subpart C of part 

5 IV of subchapter A of chapter 1 of such Code is 

6 amended by inserting after the item relating to sec7 tion 36 the following new item: 

‘‘Sec. 36A. Skills Training Credit.’’. 

8 (3) The table of sections for subchapter A of 

9 chapter 61 of such Code is amended by adding at 

10 the end the following new item: 

‘‘Sec. 6050Z. Returns relating to qualified training services.’’. 

11 (d) EFFECTIVE DATE.—The amendments made by 

12 this section shall apply to expenses paid or incurred during 

13 taxable years beginning after December 31, 2019. 

14 SEC. 3. PRECERTIFICATION BY SECRETARY OF LABOR. 

15 (a) IN GENERAL.—The Secretary of Labor shall es16 tablish a process through which the Secretary shall 

17 precertify providers of courses or programs of training 

18 services as qualified entities providing qualified training 

19 services (as such terms are defined in section 36A(b) of 

20 the Internal Revenue Code of 1986), to enable the pro21 viders and courses or programs to qualify for the tax cred22 it provided under such section 36A. 

23 (b) ESTABLISHMENT OF PRECERTIFICATION RE24 QUIREMENTS.— 


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1 (1) IN GENERAL.—By not later than 60 days 

2 after the date of enactment of this Act, the Sec3 retary of Labor shall create and publish the 

4 precertification requirements— 

5 (A) for a provider to be a qualified entity 

6 for purposes of section 36A(b)(2)(B) of the In7 ternal Revenue Code of 1986, and 

8 (B) for a course or program of study re9 lated to a high-need area, as determined by the 

10 Secretary of Labor, to be a qualified training 

11 service for purposes of section 36A(b)(3)(B) of 

12 such Code. 

13 (2) CONSIDERATIONS OF HIGH-NEED AREAS.— 

14 In determining the high-need areas for purposes of 

15 paragraph (1)(B), the Secretary of Labor shall— 

16 (A) include computer science and tech17 nology, and 

18 (B) consider— 

19 (i) the graduate areas of national 

20 need designated by the Secretary of Edu21 cation under section 712(b) of the Higher 

22 Education Act of 1965 (20 U.S.C. 

23 1135a(b)), and 

24 (ii) the STEM Designated Degree 

25 Program list issued by the Department of 


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1 Homeland Security for purposes of the 24- 

2 month optional practical training extension 

3 described in section 214.2(f)(10)(ii)(C) of 

4 title 8, Code of Federal Regulations. 

5 (3) PRECERTIFICATION PERIOD.—If the Sec6 retary of Labor precertifies a provider and a course 

7 or program of study under this section, such pro8 vider and course or program of study shall be con9 sidered to be a qualified entity for purposes of sec10 tion 36A(b)(2)(B) of the Internal Revenue Code of 

11 1986 and a qualified training service for purposes of 

12 section 36(A)(b)(3)(B) of such Code, for the entire 

13 period— 

14 (A) beginning on the date of this Act, and 

15 (B) ending on December 31, 2021. 

16 (c) APPLICATION FOR PRECERTIFICATION.— 

17 (1) IN GENERAL.—A provider of training serv18 ices that desires to be precertified as a qualified pro19 vider that offers a qualified training service shall 

20 submit an application to the Secretary of Labor at 

21 such time, in such manner, and containing such in22 formation as the Secretary may require. 

23 (2) CONTENTS.—The Secretary shall ensure 

24 that the application required under this paragraph— 


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1 (A) is streamlined and easy to complete, 

2 and 

3 (B) includes, at a minimum, information 

4 and data regarding— 

5 (i) the credential earned through the 

6 course or program, 

7 (ii) the average student completion 

8 rate for the program for the 3-year period 

9 preceding the date of application, 

10 (iii) the costs of enrollment in the pro11 gram, 

12 (iv) the average employment rate for 

13 individuals who complete the program dur14 ing such period, and 

15 (v) the average earnings for individ16 uals who complete the program during 

17 such period. 

18 (3) NOTIFICATION.—In any case where an indi19 vidual enrolling in a training service notifies a pro20 vider of training services that the individual intends 

21 to claim the credit allowed under section 36A of the 

22 Internal Revenue Code of 1986 with respect to the 

23 training service, the provider shall— 

24 (A) inform the individual if the provider 

25 and the service qualify as a qualified training 


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1 provider and qualified training service for pur2 poses of such section, and 

3 (B) if the provider has applied but has not 

4 yet received precertification for the provider or 

5 program from the Secretary of Labor under 

6 this section, alert the individual that the pro7 vider and program has not yet been 

8 precertified. 

Æ 


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