SKILL UP Act of 2020

To amend the Internal Revenue Code to provide business with a tax credit for investing in work-based learning for workers with low skill levels. 1. Short title This Act may be cited as the Skill and Knowledge Investments Leverage Leaders’ Untapped Potential Tax Credit Act of 2020 SKILL UP Act of 2020 2. Work opportunity tax credit for participation in qualifying work-based learning programs (a) In general Paragraph (1) of section 51(d) or , or (K) a qualified work-based learning participant. . (b) Wages per year taken into account Paragraph (3) of section 51(b) of such Code is amended by inserting or who is a qualified work-based learning participant subsection (d)(3)(A)(ii)(II) (c) Qualified Work-Based Learning Participant Section 51(d) of such Code is amended by adding at the end the following: (16) Qualified Work-Based Learning Participant (A) In general The term qualified work-based learning participant (i) is a member of one of the targeted group referred to in subparagraphs (A) through (J) of paragraph (1), and (ii) enrolled in a qualifying work-based learning opportunity either— (I) within 3-month period beginning on the hiring date, or (II) in the case of a program described in subparagraph (B)(iii), during the six-month period prior to the hiring date. (B) Qualifying work-based learning opportunity For the purpose of this paragraph, the term qualifying work-based learning opportunity (i) an apprenticeship program registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act; 50 Stat. 664, chapter 663; 29 U.S.C. 50 (ii) a program that has been approved by the designated local agency and that may be provided directly by an employer, or in partnership with one or more training providers, in which— (I) the training is provided to individuals who are full-time employees of the employer, (II) training consists of on the job instruction or a combination of on the job and classroom instruction, and (III) successful completion of the training program, or modules of the training program— (aa) provides for an increase in hourly wages for the employee, and (bb) may provide for the attainment of a recognized postsecondary credential (as defined under the Workforce Innovation and Opportunity Act), and (iii) a program that has been approved by the designated local agency as under clause (ii) in which a third party serves as employer of record for purposes of operating an approved program with the participating employer. . (d) Credit for tax-Exempt employers for employment of qualified work-Based learning participants (1) In general Paragraph (1) of section 3111(e) of such Code is amended by inserting or qualified work-based learning participant qualified veteran (2) Overall limitation Paragraph (2) of section 3111(e) of such Code is amended by inserting or qualified work-based learning participants qualified veterans (3) Applicable period Paragraph (4) of section 3111(e) of such Code is amended by inserting or qualified work-based learning participant qualified veteran (4) Definitions Paragraph (5) of section 3111(e) of such Code is amended by striking and , and (C) the term qualified work-based learning participant . (e) Effective date The amendments made by this section shall apply to wages paid after 90 days after the date of the enactment of this Act, with respect to enrollment in qualifying work-based learning programs beginning after such date.

Summary: Skill and Knowledge Investments Leverage Leaders' Untapped Potential Tax Credit Act of 2020 or the SKILL UP Act of 2020 This bill expands the work opportunity tax credit to include a qualified work-based learning participant.