I 

108TH CONGRESS 

2D SESSION H. R. 5254 

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

against income tax for the costs of providing technical training for employees. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 7, 2004 

Mr. DAVIS of Florida (for himself, Mr. KIND, Mr. SMITH of Washington, Mr. 

BLUMENAUER, Mr. CHANDLER, Mr. DAVIS of Alabama, Mrs. DAVIS of 

California, Mr. DOOLEY of California, Mr. ETHERIDGE, Mr. FORD, Ms. 

HOOLEY of Oregon, Mr. LARSEN of Washington, Mr. MORAN of Virginia, 

Mrs. NAPOLITANO, Mr. PRICE of North Carolina, and Mr. SNYDER) 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 the costs of 

providing technical training for employees. 

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 ‘‘Up-Skilling Tax Credit 

5 Act of 2004’’. 
2 

•HR 5254 IH 

1 SEC. 2. CREDIT TO EMPLOYERS FOR COST OF TECHNICAL 

2 TRAINING FOR EMPLOYEES. 

3 (a) IN GENERAL.—Subpart D of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 (relating to business-related credits) is amended by 

6 adding at the end the following new section: 

7 ‘‘SEC. 45G. EXPENSES FOR TECHNICAL TRAINING OF EM8 PLOYEES. 

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

10 the employee technical training credit determined under 

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

12 20 percent of the amount paid or incurred by the taxpayer 

13 for technical training for employees performing services in 

14 a trade or business of the taxpayer. 

15 ‘‘(b) LIMITATIONS.— 

16 ‘‘(1) ONLY JANUARY 1, 2004 EMPLOYEES.—The 

17 credit determined under this section shall apply only 

18 to training for individuals who were employees of the 

19 taxpayer on January 1, 2004. 

20 ‘‘(2) PER EMPLOYEE LIMIT.—The credit deter21 mined under this section with respect to each em22 ployee for the taxable year shall not exceed $1,000, 

23 reduced by the credit determined under this section 

24 with respect to such employee for all prior taxable 

25 years. 
3 

•HR 5254 IH 

1 ‘‘(3) TRAINING MUST LEAD TO RECOGNIZED

2 CERTIFICATE.—Only costs for training leading to an 

3 industry-recognized license or certificate may be 

4 taken into account under this section. 

5 ‘‘(c) CERTAIN RULES TO APPLY.—Rules similar to 

6 the rules of section 51(i)(1) and 52 shall apply for pur7 poses of this section. 

8 ‘‘(d) TERMINATION.—This section shall not apply to 

9 taxable years beginning after December 31, 2008.’’. 

10 (b) CREDIT MADE PART OF GENERAL BUSINESS

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

12 amended by striking ‘‘plus’’ at the end of paragraph (14), 

13 by striking the period at the end of paragraph (15) and 

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

15 new paragraph: 

16 ‘‘(16) the employee technical training credit de17 termined under section 45G(a).’’. 

18 (c) DENIAL OF DOUBLE BENEFIT.—Section 280C of 

19 such Code is amended by adding at the end the following 

20 new subsection: 

21 ‘‘(d) EMPLOYEE TECHNICAL TRAINING CREDIT.— 

22 No deduction shall be allowed for that portion of the ex23 penses otherwise allowable as a deduction for the taxable 

24 year which is equal to the amount of the credit determined 

25 for the taxable year under section 45G(a).’’. 
4 

•HR 5254 IH 

1 (d) CLERICAL AMENDMENT.—The table of sections 

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

3 of such Code is amended by adding at the end the fol4 lowing new item: 

‘‘Sec. 45G. Expenses for technical training of employees.’’. 

5 (e) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to expenses paid or incurred in 

7 the taxable years ending after the date of the enactment 

8 of this Act. 

Æ