I

106TH CONGRESS

1ST SESSION H. R. 204

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

against income tax for high technology job training expenses.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 1999

Mr. MORAN of Virginia 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 high technology

job training expenses.

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 HIGH TECHNOLOGY JOB TRAIN4 ING EXPENSES.

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

7 1986 (relating to business related credits) is amended by

8 adding at the end the following:
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1 ‘‘SEC. 45D. CREDIT FOR HIGH TECHNOLOGY JOB TRAINING.

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

3 the high technology job training credit determined under

4 this section is an amount equal to 50 percent of the quali5 fied high technology job training expenses paid or incurred

6 by the taxpayer during the taxable year.

7 ‘‘(b) LIMITATION.—The credit allowed under sub8 section (a) shall not exceed $2,500 for the taxable year

9 with respect to each substantially full-time employee.

10 ‘‘(c) QUALIFIED HIGH TECHNOLOGY JOB TRAINING

11 EXPENSE.—For purposes of this section—

12 ‘‘(1) IN GENERAL.—The term ‘qualified high

13 technology job training expense’ means any expense

14 for educational assistance described in paragraph (1)

15 of section 127(c) for the training of a substantially

16 full-time employee in an information technology oc17 cupation.

18 ‘‘(2) EXCEPTIONS.—Such term does not

19 include—

20 ‘‘(A) expenses for which any other Federal

21 or State credit or payment is made; or

22 ‘‘(B) expenses paid or incurred for a pro23 fessional conference or for an orientation pro24 gram.

25 ‘‘(d) INFORMATION TECHNOLOGY OCCUPATION.—

26 For purposes of this section, the term ‘information tech-
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1 nology occupation’ means an occupation specializing in the

2 study, design, development, implementation, support, or

3 management of computer based information systems, such

4 as computer scientist, computer engineer, systems analyst,

5 or computer programmer.

6 ‘‘(e) SUBSTANTIALLY FULL-TIME EMPLOYEE.—For

7 purposes of this section, the term ‘substantially full-time

8 employee’ means an employee of the taxpayer who is nor9 mally employed for at least 30 hours per week.

10 ‘‘(f) AGGREGATION RULES.—All persons treated as

11 a single employer under subsection (a) or (b) of section

12 52 or subsection (m) or (o) of section 414 shall be treated

13 as one person for purposes of this section.

14 ‘‘(g) TERMINATION.—This section shall not apply to

15 any expenses paid or incurred after December 31, 2003.’’

16 (b) CURRENT YEAR BUSINESS CREDIT CALCULA17 TION.—Subsection (b) of section 38 of such Code is

18 amended—

19 (1) by striking ‘‘plus’’ at the end of paragraph

20 (11);

21 (2) by striking the period at the end of para22 graph (12) and inserting ‘‘, plus’’; and

23 (3) by adding at the end the following:

24 ‘‘(13) the high technology job training credit

25 determined under section 45D(a).’’
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1 (c) DISALLOWANCE OF DEDUCTION BY AMOUNT OF

2 CREDIT.—Section 280C of such Code (relating to certain

3 expenses for which credits are allowable) is amended by

4 adding at the end the following:

5 ‘‘(d) CREDIT FOR CERTAIN JOB TRAINING EX6 PENSES.—No deduction shall be allowed for that portion

7 of the qualified high technology job training expenses (as

8 defined in section 45D(c)) paid or incurred during the tax9 able year that is equal to the amount of credit determined

10 for the taxable year under section 45D(a). In the case of

11 a corporation which is a member of a controlled group of

12 corporations (within the meaning of section 52(a)) or a

13 trade or business which is treated as being under common

14 control with other trades or businesses (within the mean15 ing of section 52(b)), this subsection shall be applied

16 under rules prescribed by the Secretary similar to the

17 rules applicable under subsections (a) and (b) of section

18 52.’’

19 (d) DEDUCTION FOR UNUSED CREDIT.—Subsection

20 (c) of section 196 of such Code is amended—

21 (1) by striking ‘‘and’’ at the end of paragraph

22 (6);

23 (2) by striking the period at the end of para24 graph (7) and inserting ‘‘, and’’; and

25 (3) by adding at the end the following:
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1 ‘‘(8) the high technology job training credit de2 termined under section 45D(a).’’

3 (e) LIMITATION ON CARRYBACK.—Subsection (d) of

4 section 39 of such Code is amended by adding at the end

5 the following:

6 ‘‘(8) NO CARRYBACK OF HIGH TECHNOLOGY

7 JOB TRAINING CREDIT BEFORE EFFECTIVE DATE.—

8 No amount of unused business credit available under

9 section 45D may be carried back to a taxable year

10 beginning on or before the date of the enactment of

11 this paragraph.’’

12 (f) CLERICAL AMENDMENT.—The table of sections

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

14 of such Code is amended by inserting after the item relat15 ing to section 45C the following:

‘‘Sec. 45D. Credit for high technology job training.’’

16 (g) EFFECTIVE DATE.—The amendments made by

17 this section shall apply to taxable years beginning after

18 the date of the enactment of this Act.

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