Career Advancement through New Skills Act

To amend the Internal Revenue Code of 1986 to provide a credit to employers for certain employee education and training expenses. 1. Short title This Act may be cited as the Career Advancement through New Skills Act 2. Credit for employee education and training expenses (a) In general Subpart D of part IV of subchapter A of chapter 1 45S. Employee education and training credit (a) Allowance of credit For purposes of section 38, the employee education and training credit determined under this section for the taxable year is an amount equal to 25 percent of the qualified education and training expenses paid or incurred by the taxpayer during such taxable year with respect to employees of the taxpayer. (b) Limitation The qualified education and training expenses taken into account under subsection (a) shall not exceed $5,000 with respect to any employee for any taxable year. (c) Qualified education and training expenses For purposes of this section, the term qualified education and training expenses (1) in the employee’s current employment position with such employer, or (2) in another employment position with such employer to which the employer reasonably anticipates such employee may transfer. Such term shall not include any amount paid or incurred for a program of education or training which is provided by such employer or by any person which bears a relationship to such employer described in section 267(b) or 707(b)(1). (d) Special rules (1) Aggregation All persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single employer for purposes of this section. (2) Denial of double benefit No deduction or credit shall be allowed under any other provision of this chapter with respect to the amount of the credit determined under this section. (3) Trade or business requirement No credit shall be allowed under this section with respect to any employee unless such employee is providing services in a trade or business of the taxpayer. . (b) Credit made part of general business credit Subsection (b) of section 38 plus , plus (37) the employee education and training credit determined under section 45S. . (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45S. Employee education and training credit. (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Career Advancement through New Skills Act This bill amends the Internal Revenue Code to allow a tax credit for employers that is equal to 25% of the qualified education and training expenses paid or incurred for employees. The expenses taken into account for the credit may not exceed $5,000 with respect to any employee for any taxable year. "Qualified education and training expenses" must be for a program specifically designed to maintain or improve skills of the employee which are necessary or useful either: (1) in the employee's current position with the employer, or (2) in another position with the employer to which the employer reasonably anticipates the employee may transfer. The credit does not apply to expenses for education or training programs that are provided by the employer or by certain family members or business partners of the employer.