I 

111TH CONGRESS 

2D SESSION H. R. 5420 

To provide a tax credit for job training by successful companies, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 26, 2010 

Mr. PERLMUTTER (for himself and Mr. COFFMAN of Colorado) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To provide a tax credit for job training by successful 

companies, and for other purposes. 

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 ‘‘Incentives for Success5 ful Companies Act of 2010’’. 

6 SEC. 2. CREDIT FOR JOB TRAINING BY SUCCESSFUL COM7 PANIES. 

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 (relating to business-related credits) is amended by 

2 adding at the end the following new section: 

3 ‘‘SEC. 45S. JOB TRAINING BY SUCCESSFUL COMPANIES. 

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

5 the successful company job training credit determined 

6 under this section for the taxable year is an amount equal 

7 to the amount paid or incurred by the employer in pro8 viding qualified job training during the taxable year. 

9 ‘‘(b) QUALIFIED JOB TRAINING.—For purposes of 

10 this section— 

11 ‘‘(1) IN GENERAL.—The term ‘qualified job 

12 training’ means job training provided to a United 

13 States employee within the 4-week period beginning 

14 on the hiring date of such employee. The preceding 

15 sentence shall apply only to those United States em16 ployees who first begin work for the taxpayer after 

17 the date of the enactment of this section. 

18 ‘‘(2) ITEMS INCLUDED.—Such term includes— 

19 ‘‘(A) properly allocated labor, material, 

20 and associated overhead costs for the trainers, 

21 ‘‘(B) non-working paid training hours, and 

22 ‘‘(C) associated overhead for the trainees. 

23 ‘‘(3) ITEMS EXCLUDED.—Such term does not 

24 include general and administrative costs. 


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1 ‘‘(c) UNITED STATES EMPLOYEE.—For purposes of 

2 this section— 

3 ‘‘(1) IN GENERAL.—The term ‘United States 

4 employee’ means an individual who is lawfully 

5 present in the United States and employed full time 

6 by the taxpayer in the United States. 

7 ‘‘(2) VALID SOCIAL SECURITY ACCOUNT NUM8 BER REQUIRED.—Such term shall not include any 

9 individual who does not have a valid social security 

10 account number. 

11 ‘‘(3) SOCIAL SECURITY ACCOUNT NUMBER.— 

12 The term ‘social security account number’ means a 

13 social security number issued to an individual by the 

14 Social Security Administration (other than a social 

15 security number issued pursuant to clause (II) (or 

16 that portion of clause (III) that relates to clause 

17 (II)) of section 205(c)(2)(B)(i) of the Social Security 

18 Act). 

19 ‘‘(d) OTHER DEFINITIONS.—For purposes of this 

20 section— 

21 ‘‘(1) SUCCESSFUL COMPANY.—The term ‘suc22 cessful company’ means any United States company 

23 or enterprise which the Secretary determines— 


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1 ‘‘(A) maintains a long-term United States 

2 growth plan that meets the criteria established 

3 by the Secretary under this section, 

4 ‘‘(B) as of the time of the determination, 

5 is experiencing financial performance and 

6 achieving a balance sheet would have qualified 

7 such company or enterprise for a certain level 

8 of loan from primary lending sources of such 

9 company or enterprise as of June 1, 2008, on 

10 the basis of credit and underwriting criteria in 

11 effect on such date, but cannot get access to 

12 loans from such lending sources as of the date 

13 of such determination because of current tight14 er credit and underwriting criteria, and 

15 ‘‘(C) in the most recent calendar year had 

16 an average of not fewer than 5 employees and 

17 not more than 500 employees. 

18 ‘‘(2) HIRING DATE.—The term ‘hiring date’ has 

19 the meaning given such term by section 51(d)(11). 

20 ‘‘(3) UNITED STATES.—The term ‘United 

21 States’ includes the District of Columbia and the 

22 possessions of the United States. 

23 ‘‘(e) SPECIAL RULES.— 

24 ‘‘(1) MONETIZATION OF CREDIT.—At the elec25 tion of the taxpayer, the credit allowed under this 


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1 section shall be treated as a credit allowed under 

2 subpart C and not allowed under subsection (a). 

3 ‘‘(2) ELECTION NOT TO CLAIM CREDIT.—This 

4 section shall not apply to a taxpayer for any taxable 

5 year if such taxpayer elects to have this section not 

6 apply for such taxable year. 

7 ‘‘(f) TERMINATION.—Subsection (a) shall not apply 

8 to taxable years beginning after December 31, 2014.’’. 

9 (b) CREDIT TO BE PART OF GENERAL BUSINESS

10 CREDIT.—Subsection (b) of section 38 of such Code (re11 lating to general business credit) is amended by striking 

12 ‘‘plus’’ at the end of paragraph (35), by striking the period 

13 at the end of paragraph (36) and inserting ‘‘, plus’’, and 

14 by adding at the end the following new paragraph: 

15 ‘‘(37) the successful company job training cred16 it determined under section 45S(a).’’. 

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

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

19 of such Code is amended by inserting after the item relat20 ing to section 45R the following new item: 

‘‘Sec. 45S. Job training by successful companies.’’. 

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

22 this section shall apply to taxable years beginning after 

23 December 31, 2009. 


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1 SEC. 3. INCREASE IN EXPENSING BY SUCCESSFUL COMPA2 NIES. 

3 (a) IN GENERAL.—Section 179 of the Internal Rev4 enue Code of 1986 is amended by adding at the end the 

5 following new subsection: 

6 ‘‘(6) SPECIAL RULE FOR SUCCESSFUL COMPA7 NIES.— 

8 ‘‘(A) IN GENERAL.—In the case of a suc9 cessful company, for each taxable year begin10 ning before 2015— 

11 ‘‘(i) DOLLAR LIMITATION.—Para12 graph (1) shall be applied by substituting 

13 ‘$250,000’ for the dollar amount otherwise 

14 in effect for such taxable year. 

15 ‘‘(ii) REDUCTION IN LIMITATION.— 

16 Paragraph (2) shall be applied by sub17 stituting ‘$800,000’ for the dollar amount 

18 otherwise in effect for such taxable year. 

19 ‘‘(B) SUCCESSFUL COMPANY.—For pur20 poses of subparagraph (A), the term ‘successful 

21 company’ has the meaning given such term by 

22 section 45S(d)(1).’’. 

23 (b) EFFECTIVE DATE.—The amendment made by 

24 subsection (a) shall apply to taxable years beginning after 

25 December 31, 2010. 

Æ 


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