I
106TH CONGRESS
1ST SESSION
H. R. 838
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for information technology training expenses paid
or incurred by the employer, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 24, 1999
Mr. MORAN of Virginia (for himself, Mr. SALMON, Mr. SMITH of Washington,
Mr. WOLF, Mrs. MALONEY of New York, Mr. CONYERS, and Mr. SHOWS)
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 em-
ployers a credit against income tax for information tech-
nology training expenses paid or incurred by the em-
ployer, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CREDIT FOR INFORMATION TECHNOLOGY
TRAINING PROGRAM EXPENSES.
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to business-related credits) is amended by
adding at the end the following:
‘‘SEC. 45D. INFORMATION TECHNOLOGY TRAINING PRO-
GRAM EXPENSES.
‘‘(a) GENERAL RULE.—For purposes of section 38,
in the case of an employer, the information technology
training program credit determined under this section is
an amount equal to 20 percent of information technology
training program expenses paid or incurred by the tax-
payer during the taxable year.
‘‘(b) ADDITIONAL CREDIT PERCENTAGE FOR CER-
TAIN PROGRAMS.—The percentage under subsection (a)
shall be increased by 5 percentage points for information
technology training program expenses paid or incurred by
the taxpayer with respect to a program operated—
‘‘(1) in an empowerment zone or enterprise
community designated under part I of subchapter U,
‘‘(2) in a school district in which at least 50
percent of the students attending schools in such
district are eligible for free or reduced-cost lunches
under the school lunch program established under
the National School Lunch Act,
‘‘(3) in an area designated as a disaster area by
the Secretary of Agriculture or by the President
under the Disaster Relief and Emergency Assistance
Act in the taxable year or the 4 preceding taxable
years,
‘‘(4) in a rural enterprise community designated
under section 766 of the Agriculture, Rural Develop-
ment, Food and Drug Administration, and Related
Agencies Appropriations Act, 1999,
‘‘(5) in an area designated by the Secretary of
Agriculture as a Rural Economic Area Partnership
Zone, or
‘‘(6) by an employer who has 200 or fewer em-
ployees for each working day in each of 20 or more
calendar weeks in the current or preceding calendar
year.
‘‘(c) LIMITATION.—The amount of information tech-
nology training program expenses with respect to an indi-
vidual which may be taken into account under subsection
(a) for the taxable year shall not exceed $6,000.
‘‘(d) INFORMATION TECHNOLOGY TRAINING PRO-
GRAM EXPENSES.—For purposes of this section—
‘‘(1) IN
GENERAL.—The term ‘information
technology training program expenses’ means ex-
penses paid or incurred by reason of the participa-
tion of the employer in any information technology
training program.
‘‘(2) INFORMATION
TECHNOLOGY
TRAINING
PROGRAM.—The term ‘information technology train-
ing program’ means a program—
‘‘(A) for the training of computer program-
mers, systems analysts, and computer scientists
or engineers (as such occupations are defined
by the Bureau of Labor Statistics),
‘‘(B) involving a partnership of—
‘‘(i) employers, and
‘‘(ii) State training programs, school
districts, university systems, or certified
commercial information technology train-
ing providers, and
‘‘(C) at least 50 percent of the costs of
which are paid or incurred by the employers.
‘‘(3) CERTIFIED
COMMERCIAL
INFORMATION
TECHNOLOGY TRAINING PROVIDER.—The term ‘cer-
tified commercial information technology training
providers’ means a private sector provider of edu-
cational products and services utilized for training in
information technology which is certified with re-
spect to—
‘‘(A) the curriculum that is used for the
training, or
‘‘(9) NO CARRYBACK OF SECTION 45D CREDIT
BEFORE EFFECTIVE DATE.—No portion of the un-
used business credit for any taxable year which is
attributable to the information technology training
program credit determined under section 45D may
be carried back to a taxable year ending before the
date of the enactment of section 45D.’’
(d) CLERICAL AMENDMENT.—The table of sections
for subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following:
‘‘Sec. 45D. Information technology training program expenses.’’
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts paid or incurred after
the date of enactment of this Act in taxable years ending
after such date.
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