I 

113TH CONGRESS 

2D SESSION H. R. 4204 

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 

MARCH 11, 2014 

Mr. MAFFEI 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 ‘‘Jobs and Opportunity 

5 Bonus Tax Credit Act of 2014’’ or the ‘‘JOB Tax Credit 

6 Act’’. 

7 SEC. 2. JOBS AND OPPORTUNITY BONUS CREDIT. 

8 (a) IN GENERAL.—Subpart D of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by adding at the end the following new 

2 section: 

3 ‘‘SEC. 45S. JOBS AND OPPORTUNITY BONUS CREDIT. 

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

5 the case of an eligible employer, the jobs and opportunity 

6 bonus credit determined under this section with respect 

7 to any eligible employee of the employer is an amount 

8 equal to the lesser of— 

9 ‘‘(1) 50 percent of the job training program ex10 penditures of the taxpayer with respect to such em11 ployee during the taxable year, or 

12 ‘‘(2) $5,000. 

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

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

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

16 employees during the taxable year. 

17 ‘‘(c) JOB TRAINING PROGRAM EXPENSES.—For pur18 poses of this section— 

19 ‘‘(1) IN GENERAL.—The term ‘job training pro20 gram expenses’ means amounts paid or incurred by 

21 the employer for expenses incurred by or on behalf 

22 of an eligible employee for participation in a quali23 fied training program. 

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

25 purposes of this subsection, the term ‘qualified trainVerDate Mar 15 2010 06:35 Mar 14, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4204.IH H4204

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1 ing program’ means any of the following written 

2 plans of study and training: 

3 ‘‘(A) An apprenticeship program registered 

4 and certified with the Secretary of Labor under 

5 section 1 of the National Apprenticeship Act 

6 (29 U.S.C. 50). 

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

8 certified by the workforce investment board or 

9 apprenticeship agency or council of a State or 

10 administered in compliance with apprenticeship 

11 laws of a State. 

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

13 or technical education school, community col14 lege, industrial or trade training organization, 

15 or labor organization. 

16 ‘‘(D) A program which conforms to ap17 prentice training programs developed or admin18 istered by an employer trade group or com19 mittee. 

20 ‘‘(E) An industry sponsored or adminis21 tered program which is clearly identified and 

22 commonly recognized. 

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

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

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


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1 training program is employed on average at least 40 hours 

2 of service per week. 

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

4 PERFORMING MINIMUM SERVICE.— 

5 ‘‘(1) IN GENERAL.—In the case of any em6 ployee with respect to whom a credit is allowed 

7 under this section and whose employment is termi8 nated by the employer (other than by reason of such 

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

10 2-year period beginning on the first day of the em11 ployee’s study or training with respect to which a 

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

13 taxpayer under this chapter for the taxable year dur14 ing which such termination occurs shall be increased 

15 by an amount equal to— 

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

17 allowed under section 38 for all prior taxable 

18 years which would have resulted if the job 

19 training program expenses with respect to such 

20 employee had been zero, multiplied by 

21 ‘‘(B) the inclusion ratio. 

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

23 subsection, the inclusion ratio is the ratio which— 

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

25 of— 


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

2 period, over 

3 ‘‘(ii) the number of days such em4 ployee was employed by the employer dur5 ing such 2-year period, bears to 

6 ‘‘(B) the number of days in the 2-year pe7 riod. 

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

9 section, all persons treated as a single employer under sub10 section (b), (c), (m), or (o) of section 414 shall be treated 

11 as a single employer. 

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

13 amounts paid or incurred during taxable years beginning 

14 after December 31, 2017.’’. 

15 (b) CREDIT TO BE PART OF GENERAL BUSINESS

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

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

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

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

20 new paragraph: 

21 ‘‘(37) the jobs and opportunity bonus credit de22 termined under section 45S(a).’’. 

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

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


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1 of such Code is amended by adding at the end the fol2 lowing new item: 

‘‘Sec. 45S. Jobs and opportunity bonus credit.’’. 

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

4 this section shall apply to taxable years beginning after 

5 December 31, 2014. 

Æ 


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