I 

116TH CONGRESS 

2D SESSION H. R. 8384 

To amend the Internal Revenue Code of 1986 to allow employers a credit 

against income tax as an incentive to partner with educational institutions to improve workforce development and job training for students 

and a credit against income tax for certain expenses of job training 

programs. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 24, 2020 

Ms. KUSTER of New Hampshire 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 as an incentive to 

partner with educational institutions to improve workforce development and job training for students and a 

credit against income tax for certain expenses of job 

training programs. 

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 ‘‘Workforce Develop5 ment Investment Act of 2020’’. 


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1 SEC. 2. CREDIT FOR EMPLOYERS WHICH PARTNER WITH 

2 EDUCATIONAL INSTITUTIONS TO IMPROVE 

3 WORKFORCE DEVELOPMENT AND JOB TRAIN4 ING FOR STUDENTS. 

5 (a) IN GENERAL.—Subpart D of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of 

7 1986 is amended by adding at the end the following new 

8 section: 

9 ‘‘SEC. 45U. EMPLOYERS PARTNERING WITH EDUCATIONAL 

10 INSTITUTIONS TO IMPROVE WORKFORCE DE11 VELOPMENT AND JOB TRAINING FOR STU12 DENTS. 

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

14 the employer partnering credit determined under this sec15 tion for any taxable year is an amount equal to $5,000 

16 for each qualified educational institution engaged in a 

17 qualified partnership with the employer. 

18 ‘‘(b) MAXIMUM CREDIT.— 

19 ‘‘(1) IN GENERAL.—The credit determined 

20 under this section for any taxable year shall not ex21 ceed $20,000. 

22 ‘‘(2) CONTROLLED GROUPS.—All persons treat23 ed as a single employer under subsection (b), (c), 

24 (m), or (o) of section 414 shall be treated as a single 

25 employer for purposes of paragraph (1). 

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


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1 ‘‘(1) QUALIFIED EDUCATIONAL INSTITUTION.— 

2 The term ‘qualified educational institution’ means 

3 any community college, any other institution of high4 er education, and any area career and technical edu5 cation school. 

6 ‘‘(2) COMMUNITY COLLEGE.—The term ‘com7 munity college’ means an institution of higher edu8 cation that— 

9 ‘‘(A) admits as a regular student an indi10 vidual who is beyond the age of compulsory 

11 school attendance in the State in which the in12 stitution is located and who has the ability to 

13 benefit from the training offered by the institu14 tion, and 

15 ‘‘(B) offers a 2-year program in engineer16 ing, mathematics, or the physical or biological 

17 sciences designed to prepare a student to work 

18 as a technician or at the semiprofessional level 

19 in engineering, scientific, or other technological 

20 fields requiring the understanding and applica21 tion of basic engineering, scientific, or mathe22 matical principles of knowledge. 

23 ‘‘(3) INSTITUTION OF HIGHER EDUCATION.— 

24 The term ‘institution of higher education’ has the 


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1 meaning given such term in section 102 of the High2 er Education Act of 1965 (20 U.S.C. 1002). 

3 ‘‘(4) AREA CAREER AND TECHNICAL EDU4 CATION SCHOOL.—The term ‘area career and tech5 nical education school’ has the meaning given such 

6 term in section 3 of the Carl D. Perkins Career and 

7 Technical Education Act of 2006 (29 U.S.C. 2302). 

8 ‘‘(5) QUALIFIED PARTNERSHIP.—Not later 

9 than six months after the date of the enactment of 

10 this section, the Secretary of Education, in consulta11 tion with the Secretary of Labor, shall define the 

12 term ‘qualified partnership’. Such term shall include 

13 a partnership through which— 

14 ‘‘(A) an employer collaborates with an edu15 cational institution to help develop curriculum 

16 in order to improve workforce development and 

17 job training for students, 

18 ‘‘(B) an employer helps provide instruction 

19 to students in the classroom, and 

20 ‘‘(C) an employer provides internships, ap21 prenticeships, or other similar educational op22 portunities in the workplace for students. 

23 The Secretary shall, to the extent practicable, mini24 mize the burdens of educational institutions in any 


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1 qualification process or requirements prescribed 

2 under this paragraph. 

3 ‘‘(d) CERTAIN RULES TO APPLY.—For purposes of 

4 this section, rules similar to the rules of subsections (c), 

5 (d), and (e) of section 52 shall apply.’’. 

6 (b) CREDIT TO BE PART OF GENERAL BUSINESS

7 CREDIT.—Section 38(b) of such Code is amended by strik8 ing ‘‘plus’’ at the end of paragraph (32), by striking the 

9 period at the end of paragraph (33) and inserting ‘‘, plus’’, 

10 and by adding at the end the following new paragraph: 

11 ‘‘(34) the employer partnering credit deter12 mined under section 45U.’’. 

13 (c) CLERICAL AMENDMENT.—The table of sections 

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

15 of such Code is amended by adding at the end the fol16 lowing new item: 

‘‘Sec. 45U. Employers partnering with educational institutions to improve 

workforce development and job training for students.’’. 

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

18 this section shall apply to taxable years beginning after 

19 the date of the enactment of this Act. 

20 SEC. 3. TAX CREDIT FOR EMPLOYERS WHO ENGAGE IN 

21 QUALIFIED WORKER TRAINING. 

22 (a) IN GENERAL.—Subpart D of part IV of sub23 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986, as amended by the preceding provisions of this Act, 

2 is amended by adding at the end the following new section: 

3 ‘‘SEC. 45V. CREDIT FOR EMPLOYERS WHO ENGAGE IN 

4 QUALIFIED WORKER TRAINING. 

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

6 the case of any employer, the worker training tax credit 

7 determined under this section with respect to any eligible 

8 employee of the employer is an amount equal to the lesser 

9 of— 

10 ‘‘(1) 50 percent of the job training program ex11 penditures of the taxpayer with respect to such em12 ployee during the taxable year, or 

13 ‘‘(2) $5,000. 

14 ‘‘(b) JOB TRAINING PROGRAM EXPENSES.—For pur15 poses of this section— 

16 ‘‘(1) IN GENERAL.—The term ‘job training pro17 gram expenses’ means amounts paid or incurred by 

18 the employer for expenses incurred by or on behalf 

19 of an eligible employee for participation in a quali20 fied training program. 

21 ‘‘(2) QUALIFIED TRAINING PROGRAM.—The 

22 term ‘qualified training program’ means— 

23 ‘‘(A) a qualified partnership (as defined in 

24 section 45U(c)(5)), or 


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1 ‘‘(B) an apprenticeship program registered 

2 and certified with the Secretary of Labor under 

3 section 1 of the National Apprenticeship Act 

4 (29 U.S.C. 50). 

5 ‘‘(c) ELIGIBLE EMPLOYEE.—For purposes of this 

6 section, the term ‘eligible employee’ means any employee 

7 of the employer who, while participating in the qualified 

8 training program, is— 

9 ‘‘(1) employed on average at least 40 hours of 

10 service per week, or 

11 ‘‘(2) in the case of a qualified training program 

12 with a qualified partnership (as defined in section 

13 45U(c)(5)), meets such hourly work requirements as 

14 may be specified by the Secretary of Education in 

15 connection with such partnership. 

16 ‘‘(d) RECAPTURE OF CREDIT FOR EMPLOYEE NOT

17 PERFORMING MINIMUM SERVICE.— 

18 ‘‘(1) IN GENERAL.—In the case of any em19 ployee with respect to whom a credit is allowed 

20 under this section and whose employment is termi21 nated by the employer (other than by reason of such 

22 employee’s gross misconduct) before the end of the 

23 2-year period beginning on the first day of the em24 ployee’s study or training with respect to which a 

25 credit is allowed under this section, the tax of the 


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1 taxpayer under this chapter for the taxable year dur2 ing which such termination occurs shall be increased 

3 by an amount equal to— 

4 ‘‘(A) the aggregate decrease in the credits 

5 allowed under section 38 for all prior taxable 

6 years which would have resulted if the job 

7 training program expenses with respect to such 

8 employee had been zero, multiplied by 

9 ‘‘(B) the inclusion ratio. 

10 ‘‘(2) INCLUSION RATIO.—For purposes of this 

11 subsection, the inclusion ratio is the ratio which— 

12 ‘‘(A) an amount equal to the difference 

13 of— 

14 ‘‘(i) the number of days in the 2-year 

15 period, over 

16 ‘‘(ii) the number of days such em17 ployee was employed by the employer dur18 ing such 2-year period, bears to 

19 ‘‘(B) the number of days in the 2-year pe20 riod. 

21 ‘‘(e) CONTROLLED GROUPS.—For purposes of this 

22 section, all persons treated as a single employer under sub23 section (b), (c), (m), or (o) of section 414 shall be treated 

24 as a single employer.’’. 


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1 (b) CREDIT TO BE PART OF GENERAL BUSINESS

2 CREDIT.—Subsection (b) of section 38 of such Code, as 

3 amended by the preceding provisions of this Act, is amend4 ed by striking ‘‘plus’’ at the end of paragraph (33), by 

5 striking the period at the end of paragraph (34) and in6 serting ‘‘, plus’’, and by adding at the end the following 

7 new paragraph: 

8 ‘‘(35) the worker training tax credit determined 

9 under section 45V(a).’’. 

10 (c) CLERICAL AMENDMENT.—The table of sections 

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

12 of such Code is amended by adding at the end the fol13 lowing new item: 

‘‘Sec. 45V. Credit for employers who engage in qualified worker training.’’. 

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

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

Æ 


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