I 

113TH CONGRESS 

2D SESSION H. R. 4831 

To establish a Federal tax credit approximation matching program for State 

new manufacturing jobs training tax credits, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 10, 2014 

Mr. KILDEE introduced the following bill; which was referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined 

by the Speaker, in each case for consideration of such provisions as fall 

within the jurisdiction of the committee concerned 

A BILL 

To establish a Federal tax credit approximation matching 

program for State new manufacturing jobs training tax 

credits, 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 ‘‘Twenty-First Century 

5 Manufacturing Skills and Jobs Act of 2014’’. 


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1 SEC. 2. FEDERAL MATCHING PAYMENTS FOR STATE NEW 

2 MANUFACTURING JOBS TRAINING TAX CRED3 ITS. 

4 (a) AUTHORITY TO MAKE PAYMENTS.—Subject to 

5 subsection (h), the Secretary of the Treasury shall, on a 

6 quarterly basis, make a payment to each eligible commu7 nity college in an amount equal to the aggregate new man8 ufacturing job withholding matches for all eligible trainees 

9 with respect to such eligible community college for such 

10 quarter. 

11 (b) NEW MANUFACTURING JOB TAX WITHHOLDING

12 MATCH.—In the case of any quarter, the new manufac13 turing job withholding match with respect to any eligible 

14 trainee is an amount equal to the amounts remitted as 

15 described in subsection (d)(1)(A) during such quarter with 

16 respect to such trainee by a participating eligible manufac17 turing employer. 

18 (c) ELIGIBLE COMMUNITY COLLEGE.—For purposes 

19 of this section, the term ‘‘eligible community college’’ 

20 means a public institution of higher education, as defined 

21 in section 101 of the Higher Education Act of 1965 (20 

22 U.S.C. 1001)— 

23 (1) at which the majority of degrees awarded, 

24 for any academic year, are 2-year associate’s degrees 

25 that are acceptable for full credit toward a bacca26 laureate degree, 


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1 (2) that is located in a State that has a State 

2 new manufacturing jobs training tax credit program 

3 in effect, and 

4 (3) that participates in such program by having 

5 in effect a contract that meets the requirements of 

6 subsection (d)(2). 

7 (d) STATE NEW MANUFACTURING JOBS TRAINING

8 TAX CREDIT PROGRAM.— 

9 (1) PROGRAMS DESCRIBED.—For purposes of 

10 this section, the term ‘‘State new manufacturing 

11 jobs training tax credit program’’ means a program 

12 established by a State government that provides 

13 that, if an eligible community college and an eligible 

14 manufacturing employer sign a contract that meets 

15 the requirements of paragraph (2) with respect to an 

16 eligible trainee— 

17 (A) the State income taxes withheld by the 

18 employer on behalf of the eligible trainee, once 

19 employed by the employer, to the extent they do 

20 not exceed the cost of qualified training speci21 fied in such contract, will not be remitted to the 

22 State in payment of income taxes, but will be 

23 remitted to the eligible community college, 

24 (B) the amounts so remitted will be treat25 ed in the hands of the eligible community colVerDate Mar 15 2010 01:02 Jun 12, 2014 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4831.IH H4831

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1 lege as payment for education provided by such 

2 community college, and 

3 (C) for purposes of determining the State 

4 income tax liability of the eligible trainee, the 

5 amounts so remitted will be treated as if they 

6 had been remitted to the State in payment of 

7 income taxes owed by the eligible trainee. 

8 (2) QUALIFIED CONTRACT.—A contract meets 

9 the requirements of this paragraph if— 

10 (A) the contract is between an eligible 

11 community college located in the State that has 

12 the program described in paragraph (1) and an 

13 eligible manufacturing employer with at least 1 

14 job site located in such State, 

15 (B) the contract meets all applicable re16 quirements under such State program, 

17 (C) the contract provides that— 

18 (i) the eligible community college will 

19 directly provide qualified training to indi20 viduals designated by the employer or will 

21 contract with a provider of qualified train22 ing to provide such training to such indi23 viduals, 


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1 (ii) the eligible community college will 

2 not charge tuition or fees to such individ3 uals, 

4 (iii) the employer will hire such indi5 viduals for full-time employment at a job 

6 site located within the State, 

7 (iv) such individuals will be paid by 

8 the employer a wage that is not less than 

9 the greater of— 

10 (I) 175 percent of the Federal 

11 minimum wage, or 

12 (II) the amount specified under 

13 the State program, and 

14 (v) as provided under the State pro15 gram, the employer will remit the State in16 come taxes withheld by the employer on 

17 behalf of the individual to the community 

18 college in payment for the training, to the 

19 extent such taxes do not exceed the cost 

20 described in subparagraph (D), 

21 (D) the contract specifies the entire cost of 

22 the qualified training (including all costs for 

23 equipment or instructional materials) that will 

24 be provided to each individual, and 


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1 (E) the cost and terms specified under 

2 subparagraph (D) are reasonable by market 

3 standards. 

4 (3) QUALIFIED TRAINING.—For purposes of 

5 this section, the term ‘‘qualified training’’ means 

6 education or training which, if completed, will pro7 vide the individual with— 

8 (A) education or skills necessary to per9 form the job for which such individual will be 

10 employed, 

11 (B) education or skills necessary to obtain 

12 a license required under Federal, State, or local 

13 governmental regulation for the employment of 

14 the individual in the job for which such indi15 vidual will be employed, 

16 (C) a certificate or credential which is re17 quired under Federal, State, or local govern18 mental regulation for the employment of the in19 dividual in the job for which such individual will 

20 be employed, or 

21 (D) a certificate or credential aligned with 

22 national or regionally recognized industry 

23 standards determined appropriate by the State. 

24 (4) JOB MUST BE NEW JOB.— 


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1 (A) IN GENERAL.—A State program will 

2 not be treated as a State new manufacturing 

3 jobs training tax credit program for purposes of 

4 this subsection unless the program provides 

5 that, in order to be eligible to participate, the 

6 employer must show with respect to each eligi7 ble trainee that such eligible trainee is hired for 

8 a job that— 

9 (i) is a new job (which, for purposes 

10 of this paragraph, may include a new posi11 tion within an existing job category), and 

12 not a job of a recalled worker, a replace13 ment job, or any other job that existed in 

14 the employer’s business within the 1-year 

15 period preceding the date of hire, 

16 (ii) is not a job that existed in a busi17 ness operation or substantially similar 

18 business operation of the employer for19 merly located in another location which 

20 was closed or substantially reduced by the 

21 employer, and 

22 (iii) results in a net increase in em23 ployment for the employer. 

24 (B) ONLY U.S. EMPLOYEES TAKEN INTO

25 ACCOUNT.—For purposes of subparagraph (A), 


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1 only employees at job sites located in the 

2 United States (including the possessions of the 

3 United States) shall be taken into account. 

4 (5) AGGREGATION RULES.—All persons treated 

5 as a single employer under subsection (a) or (b) of 

6 section 52, or subsection (m) or (o) of section 414 

7 of the Internal Revenue Code of 1986, shall be 

8 treated as a single employer for purposes of this sec9 tion. 

10 (6) COOPERATION WITH LOCAL WORKFORCE IN11 VESTMENT BOARDS.—An employer or eligible com12 munity college participating in a State new manufac13 turing jobs training tax credit program may work 

14 with local workforce investment boards established 

15 under section 117 of the Workforce Investment Act 

16 of 1998 (29 U.S.C. 2832) in searching for individ17 uals to hire and train through such program. 

18 (e) ELIGIBLE TRAINEE.—For purposes of this sec19 tion, the term ‘‘eligible trainee’’ means an individual— 

20 (1) who received qualified training through an 

21 eligible community college pursuant to a contract 

22 that meets the requirements of subsection (d)(2), 

23 under a State new manufacturing jobs training tax 

24 credit program, and 


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1 (2) who is employed on a full-time basis, during 

2 the quarter for which payment is made under sub3 section (a), by the employer who was a party to such 

4 contract— 

5 (A) at a job site located in the same State 

6 as the eligible community college, 

7 (B) at a wage that meets the requirements 

8 of subsection (d)(2)(iii), 

9 (C) in a job that meets the new job re10 quirement of subsection (d)(4), and 

11 (D) in a job for which such qualified train12 ing is required, either by law or regulation or 

13 by the inherent requirements of the job. 

14 (f) ELIGIBLE MANUFACTURING EMPLOYER.—For 

15 purposes of this section, the term ‘‘eligible manufacturing 

16 employer’’ means any person— 

17 (1) which employs individuals in the trade or 

18 business of manufacturing, 

19 (2) the manufacturing facilities of which are lo20 cated in the United States, and 

21 (3) the primary business of which is classified 

22 in sector 31, 32, or 33 of the North American In23 dustrial Classification System. 

24 (g) APPROPRIATION.—Out of any sums in the Treas25 ury not otherwise appropriated, there are appropriated on 


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1 an ongoing basis such sums as are necessary to carry out 

2 this section. 

3 (h) REMISSION OF STATE INCOME TAX

4 WITHHOLDINGS NOT TREATED AS PAYMENTS FOR

5 TRAINING OR EDUCATION.—In the case of an eligible 

6 manufacturing employer, the amount of withheld State in7 come tax which is remitted by the employer to an eligible 

8 community college as described in subsection (d)(1)(A) 

9 shall not be treated as an amount paid or incurred by the 

10 employer for purposes of any credit or deduction available 

11 under the Internal Revenue Code of 1986 to such em12 ployer, but shall be treated as if such amount had been 

13 remitted to the State in payment of income taxes owed 

14 by the employee. 

15 (i) TAX TREATMENT OF PAYMENTS WITH RESPECT

16 TO ELIGIBLE TRAINEE.—In the case of an eligible trainee, 

17 neither— 

18 (1) the amount of any withheld State income 

19 tax which is remitted by an employer to an eligible 

20 community college as described in subsection 

21 (d)(1)(A), nor 

22 (2) the amount of any payment made under 

23 subsection (a), 

24 shall be treated for purposes of the Internal Revenue Code 

25 of 1986 as income of the eligible trainee. For purposes 


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1 of determining the deduction under section 164(a)(3) of 

2 such Code, amounts described in paragraph (1) shall be 

3 treated as amounts paid for State income taxes by the eli4 gible trainee. 

Æ 


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