I 
113TH CONGRESS 
2D SESSION 
H. R. 4473 
To amend the Internal Revenue Code of 1986 to allow small employers 
a credit against income tax for the cost of on-the-job training expenses, 
to make the research credit permanent, and to increase the simplified 
research credit. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 10, 2014 
Mr. FOSTER (for himself, Ms. TSONGAS, Mr. OWENS, Mr. ENYART, and Mr. 
CA´RDENAS) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to allow small 
employers a credit against income tax for the cost of 
on-the-job training expenses, to make the research credit 
permanent, and to increase the simplified research credit. 
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 ‘‘Small Business Growth 
in Manufacturing Act of 2014’’. 
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SEC. 2. CREDIT FOR ON-THE-JOB TRAINING. 
(a) IN GENERAL.—Subpart D 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 new 
section: 
‘‘SEC. 45S. ON-THE-JOB TRAINING CREDIT. 
‘‘(a) IN GENERAL.—For the purposes of section 38, 
in the case of a small business employer, the job training 
credit determined under this section for the taxable year 
is an amount equal to 50 percent of the qualified training 
expenses paid or incurred by the taxpayer during the tax-
able year. 
‘‘(b) LIMITATIONS.— 
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) with respect to any eligible trainee 
shall not exceed the excess (if any) of $5,000 over 
the aggregate credit allowed to such taxpayer under 
this section with respect to such eligible trainee for 
all prior taxable years. 
‘‘(2) 3-YEAR
LIMITATION
ON
EXPENSES
PER 
TRAINEE.—Qualified training expenses may be taken 
into account under this section with respect to any 
eligible trainee only during the 3-year period begin-
ning on the date that such expenses were first in-
curred by the taxpayer with respect to such trainee. 
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‘‘(c) SMALL BUSINESS EMPLOYER.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘small business 
employer’ means any employer if such employer em-
ployed an average of 500 or fewer employees on 
business days during the most recent calendar year 
ending before the beginning of the taxable year. For 
purposes of the preceding sentence, a preceding cal-
endar year may be taken into account only if the 
employer was in existence throughout such 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 
otherwise taken into account under 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 current calendar year. 
‘‘(d) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED
TRAINING
EXPENSES.—The 
term ‘qualified training expenses’ means amounts 
paid or incurred to an unrelated party for— 
‘‘(A) the purchase or use of instructional 
materials and equipment used exclusively for 
the training of eligible trainees, 
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‘‘(B) the use of classroom or other space 
so used, and 
‘‘(C) teachers, trainers, and consultants 
engaged in carrying out such training program. 
‘‘(2) ELIGIBLE
TRAINEE.—The term ‘eligible 
trainee’ means any employee of the taxpayer who 
performs services for the employer for at least 30 
hours per week while receiving the training for 
which the qualified training expenses are incurred. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion shall be allowed for that portion of the qualified 
training expenses (otherwise allowable as a deduc-
tion for the taxable year) which is equal to the 
amount of the credit determined for such taxable 
year under this section. 
‘‘(2) AGGREGATION.—For purposes of this sec-
tion, all persons treated as a single employer under 
subsection (a) or (b) or section 52, or subsection (m) 
or (o) of section 414, shall be treated as one person. 
‘‘(f) ELECTION TO HAVE CREDIT NOT APPLY.—A 
taxpayer may elect (at such time and in such manner as 
the Secretary may by regulations prescribe) to have this 
section not apply for any taxable year.’’. 
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(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘plus’’ at 
the end of paragraph (35), by striking the period at the 
end of paragraph (36) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(37) in the case of a small business employer 
(as defined in section 45S(c)), the job training credit 
determined under section 45S(a).’’. 
(c) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM TAX.—Section 38(c)(4)(B) of such Code is amended 
by redesignating clauses (vii), (viii), and (ix) as clauses 
(viii), (ix), and (x), respectively, and by inserting after 
clause (vi) the following new clause: 
‘‘(vii) the credit determined under sec-
tion 45S,’’. 
(d) TECHNICAL AMENDMENT.—Section 6501(m) of 
such Code is amended by inserting ‘‘45S(e),’’ after 
‘‘45H(g),’’. 
(e) 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. 45S. On-the-job training credit.’’. 
(f) EFFECTIVE DATES.— 
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(1) IN GENERAL.—The amendments made by 
this section shall apply to expenses paid or incurred 
after the date of the enactment of this Act, in tax-
able years ending after such date. 
(2) MINIMUM TAX.—The amendment made by 
subsection (c) shall apply to credits determined 
under section 45S of the Internal Revenue Code of 
1986 in taxable years ending after the date of the 
enactment of this Act, and to carrybacks of such 
credits. 
SEC. 3. RESEARCH CREDIT MADE PERMANENT; INCREASE 
IN 
ALTERNATIVE 
SIMPLIFIED 
RESEARCH 
CREDIT. 
(a) RESEARCH CREDIT MADE PERMANENT.— 
(1) IN GENERAL.—Section 41 of the Internal 
Revenue Code of 1986 is amended by striking sub-
section (h). 
(2) CONFORMING AMENDMENTS.— 
(A) Subsection (c) of section 41 of such 
Code is amended by striking paragraph (4). 
(B) Paragraph (1) of section 45C(b) of 
such Code is amended by striking subparagraph 
(D). 
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(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to amounts paid or in-
curred after December 31, 2013. 
(b) INCREASE
IN ALTERNATIVE SIMPLIFIED RE-
SEARCH CREDIT.— 
(1) IN GENERAL.—Subparagraph (A) of section 
41(c)(5) of such Code (relating to election of alter-
native simplified credit) is amended by striking ‘‘14 
percent (12 percent in the case of taxable years end-
ing before January 1, 2009)’’ and inserting ‘‘20 per-
cent’’. 
(2) EFFECTIVE DATE.—The amendment made 
by this subsection shall apply to taxable years end-
ing after the date of the enactment of this Act. 
Æ 
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