SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Employers Financial 
Literacy Act’’. 
SEC. 2. CREDIT AGAINST INCOME TAX FOR SMALL BUSI-
NESSES WHICH PROVIDE CONTINUING FI-
NANCIAL EDUCATION TO EMPLOYEES. 
(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 new section: 
‘‘SEC. 45O. SMALL BUSINESSES PROVIDING CONTINUING FI-
NANCIAL EDUCATION TO EMPLOYEES. 
‘‘(a) IN GENERAL.—In the case of an eligible small 
business, the continuing financial education credit deter-
mined under this section is an amount equal to 35 percent 
of the continuing financial education expenses paid or in-
curred by the taxpayer during the taxable year. 
‘‘(b) ELIGIBLE SMALL BUSINESS.—For purposes of 
this section, the term ‘eligible small business’ means any 
small business which provides without charge a qualified 
continuing financial education program to its employees 
throughout the taxable year. 
‘‘(c) QUALIFIED
CONTINUING
FINANCIAL
EDU-
CATION PROGRAM.—For purposes of this section— 
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‘‘(1) IN
GENERAL.—The term ‘qualified con-
tinuing financial education program’ means any edu-
cational program or services— 
‘‘(A) which is provided by a community- 
based budget and counseling agency which is 
described in section 501(c)(3) and exempt from 
tax under section 501(a), 
‘‘(B) which promotes consumer under-
standing of consumer, economic, and personal 
finance issues and concepts, including saving 
for retirement, managing credit, long-term care, 
estate planning and education on predatory 
lending, identity theft, and financial abuse 
schemes, 
‘‘(C) which is offered to all employees of 
the taxpayer who have at least 2 weeks of serv-
ice with the employer, and 
‘‘(D) which is offered during— 
‘‘(i) at least 24 hours of each month 
if the taxpayer is a corporation, or 
‘‘(ii) at least 16 hours of each month 
in any other case. 
‘‘(d) SMALL BUSINESS.—For purposes of this sec-
tion— 
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‘‘(1) IN GENERAL.—The term ‘small business’ 
means, with respect to any taxable year, any em-
ployer if— 
‘‘(A) such employer employed an average 
of at least 2 but not more than 50 employees 
on business days during the most recent cal-
endar year ending before such taxable year, and 
‘‘(B) such employer employed at least 2 
employees on the first day of the taxable year. 
‘‘(2) EMPLOYERS NOT IN EXISTENCE IN PRE-
CEDING YEAR.—In the case of an employer which 
was not in existence throughout the calendar year 
referred to in paragraph (1), the determination 
under paragraph (1) shall be based on the average 
number of employees that it is reasonably expected 
such employer will employ on business days in the 
taxable year. 
‘‘(3) SPECIAL RULES.— 
‘‘(A) CONTROLLED
GROUPS.—For pur-
poses of this subsection, all persons treated as 
a single employer under subsection (b), (c), 
(m), or (o) of section 414 shall be treated as 1 
employer. 
‘‘(B) PREDECESSORS.—Any reference in 
this subsection to an employer shall include a 
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reference to any predecessor of such em-
ployer.’’. 
(b) DENIAL OF DOUBLE BENEFIT.—Section 280C of 
such Code (relating to certain expenses for which credits 
are allowable) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(f) CREDIT FOR SMALL BUSINESSES PROVIDING 
CONTINUING FINANCIAL EDUCATION TO EMPLOYEES.— 
No deduction shall be allowed for that portion of the ex-
penses paid or incurred during the taxable year which is 
equal to the credit determined for the taxable year under 
sections 45O(a). In the case of persons treated as a single 
employer under section 45O(d)(3)(A), this subsection shall 
be applied under rules prescribed by the Secretary similar 
to the rules applicable under subsections (a) and (b) of 
section 52.’’. 
(c) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (30), by striking the 
period at the end of paragraph (31) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(32) in the case of an eligible small business 
(as defined in section 45O(d)), the continuing finan-
cial education credit under section 40O(a).’’. 
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(d) 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 fol-
lowing new item: 
‘‘Sec. 40O. Small businesses providing continuing financial education to em-
ployees.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 3. PREFERENCE IN FEDERAL CONTRACTS, LOANS, 
AND OTHER ASSISTANCE FOR SMALL BUSI-
NESSES 
AND 
CORPORATIONS 
PROVIDING 
CONTINUING FINANCIAL EDUCATION TO EM-
PLOYEES. 
(a) PREFERENCE.—In the case of any Federal con-
tract or any Federal financial or nonfinancial assistance, 
an eligible small business or an eligible corporation shall 
be given a preference when submitting a bid or proposal 
for the contract or applying for such assistance. 
(b) DEFINITIONS.—In this section: 
(1) ELIGIBLE SMALL BUSINESS.—The term ‘‘el-
igible small business’’ has the meaning provided in 
section 45O(b) of the Internal Revenue Code of 
1986. 
(2) ELIGIBLE CORPORATION.—The term ‘‘eligi-
ble corporation’’ means any corporation— 
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