Workforce Development Investment Act of 2023

To amend the Internal Revenue Code of 1986 to allow employers a credit against income tax as an incentive to partner with educational institutions to improve workforce development and job training for students and a credit against income tax for certain expenses of job training programs. 1. Short title This Act may be cited as the Workforce Development Investment Act of 2023 2. Credit for employers which partner with educational institutions to improve workforce development and job training for students (a) In general Subpart D of part IV of subchapter A of chapter 1 45BB. Employers partnering with educational institutions to improve workforce development and job training for students (a) General rule For purposes of section 38, the employer partnering credit determined under this section for any taxable year is an amount equal to $5,000 for each qualified educational institution engaged in a qualified partnership with the employer. (b) Maximum credit (1) In general The credit determined under this section for any taxable year shall not exceed $20,000. (2) Controlled groups All persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer for purposes of paragraph (1). (c) Definitions For purposes of this section— (1) Qualified educational institution The term qualified educational institution (2) Community college The term community college (A) admits as a regular student an individual who is beyond the age of compulsory school attendance in the State in which the institution is located and who has the ability to benefit from the training offered by the institution, and (B) offers a 2-year program in engineering, mathematics, or the physical or biological sciences designed to prepare a student to work as a technician or at the semiprofessional level in engineering, scientific, or other technological fields requiring the understanding and application of basic engineering, scientific, or mathematical principles of knowledge. (3) Institution of higher education The term institution of higher education 20 U.S.C. 1002 (4) Area career and technical education school The term area career and technical education school 29 U.S.C. 2302 (5) Qualified partnership Not later than six months after the date of the enactment of this section, the Secretary of Education, in consultation with the Secretary of Labor, shall define the term qualified partnership (A) an employer collaborates with an educational institution to help develop curriculum in order to improve workforce development and job training for students, (B) an employer helps provide instruction to students in the classroom, and (C) an employer provides internships, apprenticeships, or other similar educational opportunities in the workplace for students. The Secretary shall, to the extent practicable, minimize the burdens of educational institutions in any qualification process or requirements prescribed under this paragraph. (d) Certain rules To Apply For purposes of this section, rules similar to the rules of subsections (c), (d), and (e) of section 52 shall apply. . (b) Credit To be part of general business credit Section 38(b) of such Code is amended by striking plus , plus (42) the employer partnering credit determined under section 45BB. . (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. 45BB. Employers partnering with educational institutions to improve workforce development and job training for students. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 3. Tax credit for employers who engage in qualified worker training (a) In general Subpart D of part IV of subchapter A of chapter 1 45CC. Credit for employers who engage in qualified worker training (a) In general For purposes of section 38, in the case of any employer, the worker training tax credit determined under this section with respect to any eligible employee of the employer is an amount equal to the lesser of— (1) 50 percent of the job training program expenditures of the taxpayer with respect to such employee during the taxable year, or (2) $5,000. (b) Job training program expenses For purposes of this section— (1) In general The term job training program expenses (2) Qualified training program The term qualified training program (A) a qualified partnership (as defined in section 45BB(c)(5)), or (B) an apprenticeship program registered and certified with the Secretary of Labor under section 1 of the National Apprenticeship Act ( 29 U.S.C. 50 (c) Eligible employee For purposes of this section, the term eligible employee (1) employed on average at least 40 hours of service per week, or (2) in the case of a qualified training program with a qualified partnership (as defined in section 45BB(c)(5)), meets such hourly work requirements as may be specified by the Secretary of Education in connection with such partnership. (d) Recapture of credit for employee not performing minimum service (1) In general In the case of any employee with respect to whom a credit is allowed under this section and whose employment is terminated by the employer (other than by reason of such employee’s gross misconduct) before the end of the 2-year period beginning on the first day of the employee’s study or training with respect to which a credit is allowed under this section, the tax of the taxpayer under this chapter for the taxable year during which such termination occurs shall be increased by an amount equal to— (A) the aggregate decrease in the credits allowed under section 38 for all prior taxable years which would have resulted if the job training program expenses with respect to such employee had been zero, multiplied by (B) the inclusion ratio. (2) Inclusion ratio For purposes of this subsection, the inclusion ratio is the ratio which— (A) an amount equal to the difference of— (i) the number of days in the 2-year period, over (ii) the number of days such employee was employed by the employer during such 2-year period, bears to (B) the number of days in the 2-year period. (e) Controlled groups For purposes of this section, all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as a single employer. . (b) Credit To be part of general business credit Subsection (b) of section 38 of such Code, as amended by the preceding provisions of this Act, is amended by striking plus , plus (43) the worker training tax credit determined under section 45CC(a). . (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code, as amended by the preceding provisions of this Act, is amended by adding at the end the following new item: Sec. 45CC. Credit for employers who engage in qualified worker training. . (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: Workforce Development Investment Act of 2023This bill allows employers new tax credits for (1) partnering with qualified educational institutions (i.e., any community college, any other institution of higher education, and any area career and technical education school) to improve workforce development and job training for students; and (2) certain job training program expenses.