I 

113TH CONGRESS 

2D SESSION H. R. 5234 

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

tax for manufacturing job training expenses. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 29, 2014 

Ms. SHEA-PORTER 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 a 

credit against tax for manufacturing 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. SHORT TITLE. 

4 This Act may be cited as the ‘‘Rewarding the Train5 ing of Employees for American Manufacturing Act of 

6 2014’’ or the ‘‘Rewarding the TEAM Act’’. 

7 SEC. 2. MANUFACTURING JOB TRAINING TAX 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. MANUFACTURING JOB TRAINING CREDIT. 

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

5 the manufacturing job training credit determined under 

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

7 14 percent of so much of the manufacturing training ex8 penses paid or incurred by a qualified manufacturing em9 ployer during the taxable year as exceeds 50 percent of 

10 the average manufacturing training expenses for the 3 

11 taxable years preceding the taxable year for which the 

12 credit is determined. 

13 ‘‘(b) DEFINITIONS.—For purposes of this section— 

14 ‘‘(1) MANUFACTURING TRAINING EXPENSES.— 

15 ‘‘(A) IN GENERAL.—The term ‘manufac16 turing training expenses’ means, with respect to 

17 any eligible employee of the taxpayer, expenses 

18 paid or incurred by such taxpayer for any man19 ufacturing training program, including any re20 lated course work, certification testing, and es21 sential skill acquisition. 

22 ‘‘(B) ELIGIBLE EMPLOYEE.—The term ‘el23 igible employee’ means any employee of the tax24 payer whose essential job function is within the 

25 United States and relates to manufacturing at 


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1 a manufacturing facility of the taxpayer located 

2 within the United States. 

3 ‘‘(2) QUALIFYING MANUFACTURING EM4 PLOYER.—The term ‘qualified manufacturing em5 ployer’ means any employer— 

6 ‘‘(A) which employs individuals in a trade 

7 or business in manufacturing, 

8 ‘‘(B) the manufacturing facilities of which 

9 are located in the United States, and 

10 ‘‘(C) the primary business of which is clas11 sified in sector 31, 32, or 33 of the North 

12 American Industrial Classification System. 

13 ‘‘(c) SPECIAL RULES.— 

14 ‘‘(1) RULE IN CASE OF NO MANUFACTURING

15 TRAINING EXPENSES IN ANY OF 3 PRECEDING TAX16 ABLE YEARS.— 

17 ‘‘(A) TAXPAYERS TO WHICH PARAGRAPH

18 APPLIES.—The credit under this section shall 

19 be determined under this paragraph if the tax20 payer has no manufacturing training expenses 

21 in any one of the 3 taxable years preceding the 

22 taxable year for which the credit is being deter23 mined. 

24 ‘‘(B) CREDIT RATE.—The credit deter25 mined under this paragraph shall be equal to 6 


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1 percent of the manufacturing training expenses 

2 for the taxable year. 

3 ‘‘(2) DENIAL OF DOUBLE BENEFIT.—No deduc4 tion shall be allowed under this chapter for the por5 tion of the expenses otherwise allowable as a deduc6 tion that are taken into account in determining the 

7 credit under this section for the taxable year. 

8 ‘‘(3) AGGREGATION.—For purposes of this sec9 tion, all persons treated as a single employer under 

10 subsection (a) or (b) or section 52, or subsection (m) 

11 or (o) of section 414, shall be treated as one person. 

12 ‘‘(d) ELECTION TO HAVE CREDIT NOT APPLY.—A 

13 taxpayer may elect to have this section not apply for any 

14 taxable year.’’. 

15 (b) CREDIT TO BE PART OF GENERAL BUSINESS

16 CREDIT.—Subsection (b) of section 38 of the Internal 

17 Revenue Code of 1986 is amended by striking ‘‘plus’’ at 

18 the end of paragraph (35), by striking the period at the 

19 end of paragraph (36) and inserting ‘‘, plus’’, and by add20 ing at the end the following new paragraph: 

21 ‘‘(37) the manufacturing job training 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 the Internal Revenue Code of 1986 is amended by add2 ing at the end the following new item: 

‘‘Sec. 45S. Manufacturing job training credit.’’. 

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

4 this section shall apply to expenses paid or incurred after 

5 the date of the enactment of this Act, in taxable years 

6 ending after such date. 

Æ 


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