I 

114TH CONGRESS 

1ST SESSION H. R. 2431 

To amend the Internal Revenue Code of 1986 to provide a credit against 

tax for job training expenses of employers. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 19, 2015 

Mr. AGUILAR 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 provide 

a credit against tax for job training expenses of employers. 

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 ‘‘On-the-Job Training 

5 Tax Credit Act of 2015’’. 

6 SEC. 2. ON-THE-JOB TRAINING TAX CREDIT. 

7 (a) IN GENERAL.—Subpart D of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 is amended by adding at the end the following new 

10 section: 


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1 ‘‘SEC. 45S. ON-THE-JOB TRAINING TAX CREDIT. 

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

3 the case of an eligible employer, the on-the-job training 

4 tax credit determined under this section with respect to 

5 any eligible employee of the employer is an amount equal 

6 to the lesser of— 

7 ‘‘(1) 50 percent of the job training program ex8 penditures of the taxpayer with respect to such em9 ployee during the taxable year, or 

10 ‘‘(2) $5,000. 

11 ‘‘(b) ELIGIBLE EMPLOYER.—For purposes of this 

12 section, the term ‘eligible employer’ means an employer 

13 which employed an average of not more than 500 full-time 

14 employees during the taxable year. 

15 ‘‘(c) JOB TRAINING PROGRAM EXPENSES.—For pur16 poses of this section— 

17 ‘‘(1) IN GENERAL.—The term ‘job training pro18 gram expenses’ means amounts paid or incurred by 

19 the employer for expenses incurred by or on behalf 

20 of an eligible employee for participation in a quali21 fied training program. 

22 ‘‘(2) QUALIFIED TRAINING PROGRAM.—For 

23 purposes of this subsection, the term ‘qualified train24 ing program’ means any of the following written 

25 plans of study and training: 


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1 ‘‘(A) 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 ‘‘(B) A program licensed, registered, or 

6 certified by the workforce investment board or 

7 apprenticeship agency or council of a State or 

8 administered in compliance with apprenticeship 

9 laws of a State. 

10 ‘‘(C) A program conducted by a vocational 

11 or technical education school, community col12 lege, industrial or trade training organization, 

13 or labor organization. 

14 ‘‘(D) A program which conforms to ap15 prentice training programs developed or admin16 istered by an employer trade group or com17 mittee. 

18 ‘‘(E) An industry sponsored or adminis19 tered program which is clearly identified and 

20 commonly recognized. 

21 ‘‘(d) ELIGIBLE EMPLOYEE.—For purposes of this 

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

23 of the employer, who while participating in the job skills 

24 training program is employed on average at least 40 hours 

25 of service per week. 


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1 ‘‘(e) RECAPTURE OF CREDIT FOR EMPLOYEE NOT

2 PERFORMING MINIMUM SERVICE.— 

3 ‘‘(1) IN GENERAL.—In the case of any em4 ployee with respect to whom a credit is allowed 

5 under this section and whose employment is termi6 nated by the employer (other than by reason of such 

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

8 2-year period beginning on the first day of the em9 ployee’s study or training with respect to which a 

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

11 taxpayer under this chapter for the taxable year dur12 ing which such termination occurs shall be increased 

13 by an amount equal to— 

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

15 allowed under section 38 for all prior taxable 

16 years which would have resulted if the job 

17 training program expenses with respect to such 

18 employee had been zero, multiplied by 

19 ‘‘(B) the inclusion ratio. 

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

21 subsection, the inclusion ratio is the ratio which— 

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

23 of— 

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

25 period, over 


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1 ‘‘(ii) the number of days such em2 ployee was employed by the employer dur3 ing such 2-year period, bears to 

4 ‘‘(B) the number of days in the 2-year pe5 riod. 

6 ‘‘(f) CONTROLLED GROUPS.—For purposes of this 

7 section, all persons treated as a single employer under sub8 section (b), (c), (m), or (o) of section 414 shall be treated 

9 as a single employer. 

10 ‘‘(g) TERMINATION.—The section shall not apply 

11 amounts paid or incurred during taxable years beginning 

12 after December 31, 2017.’’. 

13 (b) CREDIT TO BE PART OF GENERAL BUSINESS

14 CREDIT.—Subsection (b) of section 38 of such Code is 

15 amended by striking ‘‘plus’’ at the end of paragraph (35), 

16 by striking the period at the end of paragraph (36) and 

17 inserting ‘‘, plus’’, and by adding at the end the following 

18 new paragraph: 

19 ‘‘(37) the on-the-job training tax credit deter20 mined under section 45S(a).’’. 

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

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

23 of such Code is amended by adding at the end the fol24 lowing new item: 

‘‘Sec. 45S. On-the-job training tax credit.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2014. 

Æ 


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