I 
113TH CONGRESS 
2D SESSION 
H. R. 4831 
To establish a Federal tax credit approximation matching program for State 
new manufacturing jobs training tax credits, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 10, 2014 
Mr. KILDEE introduced the following bill; which was referred to the Com-
mittee on Education and the Workforce, and in addition to the Com-
mittee on Ways and Means, for a period to be subsequently determined 
by the Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned 
A BILL 
To establish a Federal tax credit approximation matching 
program for State new manufacturing jobs training tax 
credits, 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. SHORT TITLE. 
This Act may be cited as the ‘‘Twenty-First Century 
Manufacturing Skills and Jobs Act of 2014’’. 
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SEC. 2. FEDERAL MATCHING PAYMENTS FOR STATE NEW 
MANUFACTURING JOBS TRAINING TAX CRED-
ITS. 
(a) AUTHORITY TO MAKE PAYMENTS.—Subject to 
subsection (h), the Secretary of the Treasury shall, on a 
quarterly basis, make a payment to each eligible commu-
nity college in an amount equal to the aggregate new man-
ufacturing job withholding matches for all eligible trainees 
with respect to such eligible community college for such 
quarter. 
(b) NEW MANUFACTURING JOB TAX WITHHOLDING 
MATCH.—In the case of any quarter, the new manufac-
turing job withholding match with respect to any eligible 
trainee is an amount equal to the amounts remitted as 
described in subsection (d)(1)(A) during such quarter with 
respect to such trainee by a participating eligible manufac-
turing employer. 
(c) ELIGIBLE COMMUNITY COLLEGE.—For purposes 
of this section, the term ‘‘eligible community college’’ 
means a public institution of higher education, as defined 
in section 101 of the Higher Education Act of 1965 (20 
U.S.C. 1001)— 
(1) at which the majority of degrees awarded, 
for any academic year, are 2-year associate’s degrees 
that are acceptable for full credit toward a bacca-
laureate degree, 
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(ii) the eligible community college will 
not charge tuition or fees to such individ-
uals, 
(iii) the employer will hire such indi-
viduals for full-time employment at a job 
site located within the State, 
(iv) such individuals will be paid by 
the employer a wage that is not less than 
the greater of— 
(I) 175 percent of the Federal 
minimum wage, or 
(II) the amount specified under 
the State program, and 
(v) as provided under the State pro-
gram, the employer will remit the State in-
come taxes withheld by the employer on 
behalf of the individual to the community 
college in payment for the training, to the 
extent such taxes do not exceed the cost 
described in subparagraph (D), 
(D) the contract specifies the entire cost of 
the qualified training (including all costs for 
equipment or instructional materials) that will 
be provided to each individual, and 
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(E) the cost and terms specified under 
subparagraph (D) are reasonable by market 
standards. 
(3) QUALIFIED
TRAINING.—For purposes of 
this section, the term ‘‘qualified training’’ means 
education or training which, if completed, will pro-
vide the individual with— 
(A) education or skills necessary to per-
form the job for which such individual will be 
employed, 
(B) education or skills necessary to obtain 
a license required under Federal, State, or local 
governmental regulation for the employment of 
the individual in the job for which such indi-
vidual will be employed, 
(C) a certificate or credential which is re-
quired under Federal, State, or local govern-
mental regulation for the employment of the in-
dividual in the job for which such individual will 
be employed, or 
(D) a certificate or credential aligned with 
national or regionally recognized industry 
standards determined appropriate by the State. 
(4) JOB MUST BE NEW JOB.— 
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(A) IN GENERAL.—A State program will 
not be treated as a State new manufacturing 
jobs training tax credit program for purposes of 
this subsection unless the program provides 
that, in order to be eligible to participate, the 
employer must show with respect to each eligi-
ble trainee that such eligible trainee is hired for 
a job that— 
(i) is a new job (which, for purposes 
of this paragraph, may include a new posi-
tion within an existing job category), and 
not a job of a recalled worker, a replace-
ment job, or any other job that existed in 
the employer’s business within the 1-year 
period preceding the date of hire, 
(ii) is not a job that existed in a busi-
ness operation or substantially similar 
business operation of the employer for-
merly located in another location which 
was closed or substantially reduced by the 
employer, and 
(iii) results in a net increase in em-
ployment for the employer. 
(B) ONLY U.S. EMPLOYEES TAKEN INTO 
ACCOUNT.—For purposes of subparagraph (A), 
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only employees at job sites located in the 
United States (including the possessions of the 
United States) shall be taken into account. 
(5) AGGREGATION RULES.—All persons treated 
as a single employer under subsection (a) or (b) of 
section 52, or subsection (m) or (o) of section 414 
of the Internal Revenue Code of 1986, shall be 
treated as a single employer for purposes of this sec-
tion. 
(6) COOPERATION WITH LOCAL WORKFORCE IN-
VESTMENT BOARDS.—An employer or eligible com-
munity college participating in a State new manufac-
turing jobs training tax credit program may work 
with local workforce investment boards established 
under section 117 of the Workforce Investment Act 
of 1998 (29 U.S.C. 2832) in searching for individ-
uals to hire and train through such program. 
(e) ELIGIBLE TRAINEE.—For purposes of this sec-
tion, the term ‘‘eligible trainee’’ means an individual— 
(1) who received qualified training through an 
eligible community college pursuant to a contract 
that meets the requirements of subsection (d)(2), 
under a State new manufacturing jobs training tax 
credit program, and 
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(2) who is employed on a full-time basis, during 
the quarter for which payment is made under sub-
section (a), by the employer who was a party to such 
contract— 
(A) at a job site located in the same State 
as the eligible community college, 
(B) at a wage that meets the requirements 
of subsection (d)(2)(iii), 
(C) in a job that meets the new job re-
quirement of subsection (d)(4), and 
(D) in a job for which such qualified train-
ing is required, either by law or regulation or 
by the inherent requirements of the job. 
(f) ELIGIBLE MANUFACTURING EMPLOYER.—For 
purposes of this section, the term ‘‘eligible manufacturing 
employer’’ means any person— 
(1) which employs individuals in the trade or 
business of manufacturing, 
(2) the manufacturing facilities of which are lo-
cated in the United States, and 
(3) the primary business of which is classified 
in sector 31, 32, or 33 of the North American In-
dustrial Classification System. 
(g) APPROPRIATION.—Out of any sums in the Treas-
ury not otherwise appropriated, there are appropriated on 
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an ongoing basis such sums as are necessary to carry out 
this section. 
(h) 
REMISSION
OF
STATE
INCOME
TAX 
WITHHOLDINGS
NOT
TREATED
AS
PAYMENTS
FOR 
TRAINING OR EDUCATION.—In the case of an eligible 
manufacturing employer, the amount of withheld State in-
come tax which is remitted by the employer to an eligible 
community college as described in subsection (d)(1)(A) 
shall not be treated as an amount paid or incurred by the 
employer for purposes of any credit or deduction available 
under the Internal Revenue Code of 1986 to such em-
ployer, but shall be treated as if such amount had been 
remitted to the State in payment of income taxes owed 
by the employee. 
(i) TAX TREATMENT OF PAYMENTS WITH RESPECT 
TO ELIGIBLE TRAINEE.—In the case of an eligible trainee, 
neither— 
(1) the amount of any withheld State income 
tax which is remitted by an employer to an eligible 
community college as described in subsection 
(d)(1)(A), nor 
(2) the amount of any payment made under 
subsection (a), 
shall be treated for purposes of the Internal Revenue Code 
of 1986 as income of the eligible trainee. For purposes 
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