Workforce Investment and Job Creation Act

To establish a national strategy for identifying job training needs to increase opportunities for technical school training and promote hiring. 1. Short title This Act may be cited as the Workforce Investment and Job Creation Act 2. Identifying Job Training Needs (a) Strategy report (1) Strategy report required The Secretary of Labor shall develop and submit to Congress a strategy report to address the skills gap by providing analysis and recommendations to increase on-the-job training and apprenticeship opportunities and increase employer participation in education and workforce training. (2) Goals of the strategy report The strategy report required by paragraph (1) shall include specific recommendations to achieve the following goals: (A) To increase the aggregate number of employers and employees participating in on-the-job training and apprenticeships. (B) To determine ways in which the Department of Labor can increase employer outreach to encourage new and expanded employer participation in education and workforce training. (C) To identify and prioritize industry-recognized postsecondary credentials that are nationally portable and aligned with in-demand occupations in industries such as construction, manufacturing, and others that are emerging. (D) To determine ways in which the Department of Labor can better address the skills gap by maximizing existing resources, programs, and personnel. (3) Analysis required As part of the strategy report under paragraph (1), the Secretary shall, at a minimum, include the following: (A) A comparison of United States on-the-job training and apprenticeship policies and strategies with the policies and strategies of other countries where employers play a larger role in education and workforce training. (B) An assessment of the Department of Labor’s Registered Apprenticeship program to determine how it can be better utilized to appeal to more industries and to boost the goals described in paragraph (2). (C) An evaluation of any existing or potential opportunities within the Department of Labor to refocus or repurpose resources and personnel to better support on-the-job training and apprenticeship goals. (D) An analysis of the specific barriers preventing the domestic workforce from acquiring the skills desired by domestic employers, including an assessment of opportunities to reduce those barriers by— (i) improving coordination between Federal agencies that administer employment and training programs; and (ii) modifying Federal employment and training programs to enable States to better utilize Federal employment and training funds. (4) Recommendations The Secretary shall include in the skills gap strategy report required under paragraph (1) recommendations for achieving the goals included in the strategy pursuant to paragraph (2). Such recommendations may include proposals as follows: (A) Actions that may be taken by the Federal Government, Congress, State, local and territorial governments, the private sector, universities, industry associations, and other stakeholders to improve policies, coordination, and interaction between such entities, including strategies and best practices to— (i) boost public-private partnerships and employer-led partnerships; and (ii) help establish regional industry partnerships. (B) Adoption of strategies that have been implemented and proven successful in key industries and regions in the United States and in other countries. (C) In coordination with the Secretary of Commerce and the Secretary of Education, develop plans that identify strategies— (i) for increased employer participation in career and technical education; (ii) to better align career and technical education curriculums and programs with fast growing industry sectors; (iii) to encourage more pre-apprenticeship and college credit courses in secondary schools; (iv) to improve school-to-work transitions and connections; and (v) to assist employers in partnering with elementary schools, secondary schools, and institutions of higher education. (5) Submittal of strategy report Not later than 1 year after the date of the enactment of this Act, the Secretary shall submit to Congress the strategy report developed under this subsection. (6) Implementation The Secretary may implement the recommendations under paragraph (4) as the Secretary determines appropriate, if otherwise permitted under law. (b) Definitions In this section: (1) ESEA terms The terms elementary school secondary school 20 U.S.C. 7801 (2) Industry-recognized The term industry-recognized (A) is sought or accepted by employers within the industry sector involved as recognized, preferred, or required for recruitment, screening, hiring, or advancement; (B) is endorsed by a recognized trade or professional association or organization, representing a significant part of the industry sector; and (C) is a nationally portable credential that is sought or accepted across multiple States, as described in subparagraph (A). (3) Institution of higher education The term institution of higher education (4) Recognized postsecondary credential The term recognized postsecondary credential 20 U.S.C. 1001(a) (5) Secretary The term Secretary (6) Skills gap The term skills gap 3. Technical school training subsidy program Section 171 of the Workforce Investment Act of 1998 ( 29 U.S.C. 2916 (f) Technical school training subsidy pilot program (1) Establishment of Technical School Training Subsidy Pilot program From the amounts appropriated to carry out this subsection, the Secretary shall award competitive grants to States to provide such funds to local boards for the provision of technical school training subsidies in local areas through one-stop delivery systems described in section 134(c). (2) Application To receive a grant under this subsection a State shall submit to the Secretary an application in such manner, at such time, and containing such information as the Secretary may require. (3) Qualifications and Requirements for subsidy (A) In general A technical school training subsidy for an academic year may be provided, in accordance with subparagraph (E) (B) Amount of subsidy (i) Considerations In determining the amount of a subsidy to provide to an unemployed individual under this subsection, a one-stop operator or one-stop partner, as appropriate, shall take into account— (I) the cost of tuition of such individual; (II) the expected family contribution, as determined in accordance with section 474 of the Higher Education Act of 1965 ( 20 U.S.C. 1087nn (III) the estimated financial assistance for such individual not received under this subsection. (ii) Aggregate amount The aggregate amount of subsidies an individual may receive under this subsection may not exceed $2,000. (C) Number of subsidies An individual may receive subsidies under this subsection for not more than 2 academic years. (D) Use of funds A subsidy an individual receives under this subsection shall be used to assist the individual in paying the cost of tuition for career and technical education at a technical school. All subsidies received by an individual under this subsection shall be used to pay the cost of tuition for career and technical education at the same technical school. (E) Provision of subsidy Upon approving an unemployed individual for a subsidy under this subsection, a one-stop operator or one-stop partner, as appropriate, shall provide, prior to the start of an academic year, the subsidy to the technical school in which the unemployed individual is enrolled or accepted for enrollment. (4) Definitions In this subsection— (A) The term career and technical education 20 U.S.C. 2302 (B) The term cost of tuition (i) tuition and fees normally assessed a student carrying the same academic workload as determined by the technical school, and including costs for rental or purchase of any equipment, materials, or supplies required of all students in the same course of study; and (ii) an allowance for books and supplies, for a student attending the technical school on at least a half-time basis, as determined by the school. (C) The term technical school postsecondary vocational institution (D) The term postsecondary vocational institution (E) The term unemployed individual . 4. Tax Credits for New Hires (a) Credit for increasing employment Subpart C of part IV of subchapter A of chapter 1 36C. Credit for increasing employment (a) In general There shall be allowed as a credit against the tax imposed by this subtitle— (1) for any taxable year beginning in 2014, an amount equal to 60 percent of the excess of— (A) the aggregate wages paid during 2014, over (B) the aggregate wages paid during 2013, and (2) for any taxable year beginning in 2015, an amount equal to 40 percent of the excess of— (A) the aggregate wages paid during 2015, over (B) the aggregate inflation-adjusted wages paid during 2014. (b) Maximum credit The amount of the credit allowable under this section for any employer with respect to any calendar year shall not exceed $500,000. (c) Minimum preceding year wages For purposes of subsection (a)— (1) the amount taken into account under paragraph (1)(B) thereof shall not be less than 50 percent of the amount described in paragraph (1)(A) thereof, and (2) the amount taken into account under paragraph (2)(B) thereof shall not be less than 50 percent of the amount described in paragraph (2)(A) thereof. (d) Total wages must increase The amount of credit allowed under this section for any taxable year shall not exceed the amount which would be so allowed for such year (without regard to subsection (c)) if— (1) the aggregate amounts taken into account as wages were determined without any dollar limitation, and (2) 103 percent of the amount of wages otherwise required to be taken into account under subsection (a)(1)(B) or subsection (a)(2)(B), as the case may be, were taken into account. (e) Wages; inflation-Adjusted wages For purposes of this section: (1) In general Except as provided in paragraph (2), the term wages (2) Railway and agricultural labor Rules similar to the rules of section 51(h) shall apply for purposes of this section. (3) Inflation-adjusted wages The term inflation-adjusted wages (A) such aggregate wages, multiplied by (B) the cost-of-living adjustment determined under section 1(f)(3) for 2014, determined by substituting calendar year 2012 calendar year 1992 Any increase determined under the preceding sentence shall be rounded in such manner as the Secretary shall prescribe. (f) Special rules (1) Adjustments for certain acquisitions, etc (A) Acquisitions If, after December 31, 2012, an employer acquires the major portion of a trade or business of another person (hereinafter in this subparagraph referred to as the predecessor (B) Dispositions If, after December 31, 2012— (i) an employer disposes of the major portion of any trade or business of the employer or the major portion of a separate unit of a trade or business of the employer in a transaction to which subparagraph (A) applies, and (ii) the employer furnishes the acquiring person such information as is necessary for the application of subparagraph (A), then, for purposes of applying this section for any calendar year ending after such disposition, the amount of wages deemed paid by the employer during periods before such disposition shall be decreased by so much of such wages as is attributable to such trade or business or separate unit. (2) Change in status from self-employed to employee If— (A) during 2013 or 2014 an individual has net earnings from self-employment (as defined in section 1402(a)) which are attributable to a trade or business, and (B) for any portion of the succeeding calendar year such individual is an employee of such trade or business, then, for purposes of determining the credit allowable for a taxable year beginning in such succeeding calendar year, the employer’s aggregate wages for 2013 or 2014, as the case may be, shall be increased by an amount equal to so much of the net earnings referred to in subparagraph (A) as does not exceed the median household income in the United States for 2013 or 2014, as the case may be. (3) Certain other rules to apply Rules similar to the following rules shall apply for purposes of this section: (A) Section 51(f) (relating to remuneration must be for trade or business employment). (B) Section 51(i)(1) (relating to related individuals ineligible). (C) Section 51(k) (relating to treatment of successor employers; treatment of employees performing services for other persons). (D) Section 52 (relating to special rules). (4) Short taxable years If the employer has more than 1 taxable year beginning in 2014 or 2015, the credit under this section shall be determined for the employer’s last taxable year beginning in 2014 or 2015, as the case may be. . (b) Denial of double benefit Subsection (a) of section 280C of such Code is amended by inserting 36C(a), 45A(a) (c) Conforming amendments (1) Section 1324(b)(2) 36C, 36B, (2) The table of sections for subpart C of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. Credit for increasing employment. (d) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2013.

Summary: Workforce Investment and Job Creation Act - Directs the Secretary of Labor to develop a strategy report to address the skills gap by providing analysis and recommendations to increase on-the-job training and apprenticeship opportunities, identify industry-recognized postsecondary credentials that are nationally portable and aligned with in-demand occupations in industries such as construction, manufacturing, and others that are emerging, and increase employer participation in education and workforce training. Defines the term "skills gap" as the difference, or gap, between the current supply of labor and skills of the workforce and that which is desired by employers. Amends the Workforce Investment Act of 1998 to require the Secretary of Labor to award competitive grants to states to provide funds to local boards for provision of technical school training subsidies in local areas through one-stop delivery systems to pay tuition costs for the career and technical education of unemployed individuals enrolled or accepted at a technical school. Limits the aggregate amount of subsidies to an individual to $2,000. Amends the Internal Revenue Code to allow employers a refundable tax credit for: (1) 60% of the excess of the aggregate wages paid to their employees in 2014 over the aggregate wages paid them in 2013, and (2) 40% of the excess of such wages paid during 2015 over the aggregate inflation-adjusted wages paid during 2014. Limits the maximum amount of such credit to $500,000 in any calendar year.