strong middle class, and the welfare of our Nation’s 
workers to reverse this trend in a fashion that is 
consistent with trade obligations and the ability of 
domestic companies to compete globally. 
(7) Public-private partnerships work well in the 
United States to advance the needs of our citizens, 
businesses and communities. The research and de-
velopment tax credit under section 41 of the Internal 
Revenue Code of 1986 is just one example of maxi-
mizing the use of each sector’s strength, reducing 
development risk and public capital investment, and 
improving cost effectiveness. 
(8) Businesses are most adept at training our 
workforce because they train employees for available 
jobs, develop and utilize new training methods, and 
eliminate ineffective trainers and training programs. 
(9) With a substantial number of baby boomers 
retiring over the next 20 years, the United States 
has to ensure that it is capable of training its work-
force for the high paying information and commu-
nications technology jobs, whose payroll contribu-
tions will help support the benefit programs of these 
retirees, as well as providing incentives to help ma-
ture workers retrain for new jobs after they retire, 
if they desire. 
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(b) PURPOSES.— 
(1) It is the purpose of this Act to encourage 
businesses and individuals to support the edu-
cational development of knowledge workers in the 
United States by providing incentives for informa-
tion and communications technology education and 
training investments, for workers requiring the use 
of those skills in professions such as information or 
communications technology, engineering, manufac-
turing and other fields, and for other purposes. 
(2) By encouraging employers to train more in-
cumbent workers and potential employees in the 
areas necessary to expand and maintain their busi-
nesses, the United States will better utilize available 
training dollars and maximize the ability of newly 
trained individuals to utilize their acquired skills. 
SEC. 3. CREDIT FOR INFORMATION AND COMMUNICATIONS 
TECHNOLOGY EDUCATION AND TRAINING 
PROGRAM EXPENSES. 
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following: 
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‘‘SEC. 30D. INFORMATION AND COMMUNICATIONS TECH-
NOLOGY EDUCATION AND TRAINING PRO-
GRAM EXPENSES. 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN GENERAL.—There shall be allowed as a 
credit against the tax imposed by this chapter for 
the taxable year an amount equal to 50 percent of 
information and communications technology edu-
cation and training program expenses paid or in-
curred by the taxpayer for the benefit of— 
‘‘(A) in the case of a taxpayer engaged in 
a trade or business, an employee of the tax-
payer, or 
‘‘(B) in the case of a taxpayer who is an 
individual not so engaged, such individual. 
‘‘(2) COORDINATION OF CREDITS.—Credit shall 
be allowable to the employer with respect to an em-
ployee only to the extent that the employee assigns 
some or all of the limitation applicable to such em-
ployee under subsection (b) to such employer. 
‘‘(b) LIMITATIONS.— 
‘‘(1) IN GENERAL.—The amount of expenses 
with respect to any individual which may be taken 
into account under subsection (a) for the taxable 
year shall not exceed $4,000. 
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‘‘(2) INCREASE IN CREDIT AMOUNT FOR PAR-
TICIPATION IN CERTAIN PROGRAMS AND FOR CER-
TAIN INDIVIDUALS.—Paragraph (1) shall be applied 
by substituting ‘$5,000’ for ‘$4,000’ in the case of 
expenses— 
‘‘(A) with respect to a program operated— 
‘‘(i) in an empowerment zone or en-
terprise community designated under part 
I of subchapter U or a renewal community 
designated under part I of subchapter X, 
‘‘(ii) 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 Rich-
ard B. Russell National School Lunch Act, 
‘‘(iii) in an area designated as a dis-
aster area by the Secretary of Agriculture 
under section 321 of the Consolidated 
Farm and Rural Development Act or by 
the President under the Robert T. Stafford 
Disaster Relief and Emergency Assistance 
Act in the taxable year or the 4 preceding 
taxable years, 
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