I 
111TH CONGRESS 
2D SESSION 
H. R. 5420 
To provide a tax credit for job training by successful companies, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 26, 2010 
Mr. PERLMUTTER (for himself and Mr. COFFMAN of Colorado) introduced the 
following bill; which was referred to the Committee on Ways and Means 
A BILL 
To provide a tax credit for job training by successful 
companies, 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 ‘‘Incentives for Success-
ful Companies Act of 2010’’. 
SEC. 2. CREDIT FOR JOB TRAINING BY SUCCESSFUL COM-
PANIES. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 (relating to business-related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45S. JOB TRAINING BY SUCCESSFUL COMPANIES. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the successful company job training credit determined 
under this section for the taxable year is an amount equal 
to the amount paid or incurred by the employer in pro-
viding qualified job training during the taxable year. 
‘‘(b) QUALIFIED JOB TRAINING.—For purposes of 
this section— 
‘‘(1) IN
GENERAL.—The term ‘qualified job 
training’ means job training provided to a United 
States employee within the 4-week period beginning 
on the hiring date of such employee. The preceding 
sentence shall apply only to those United States em-
ployees who first begin work for the taxpayer after 
the date of the enactment of this section. 
‘‘(2) ITEMS INCLUDED.—Such term includes— 
‘‘(A) properly allocated labor, material, 
and associated overhead costs for the trainers, 
‘‘(B) non-working paid training hours, and 
‘‘(C) associated overhead for the trainees. 
‘‘(3) ITEMS EXCLUDED.—Such term does not 
include general and administrative costs. 
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‘‘(c) UNITED STATES EMPLOYEE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—The term ‘United States 
employee’ means an individual who is lawfully 
present in the United States and employed full time 
by the taxpayer in the United States. 
‘‘(2) VALID SOCIAL SECURITY ACCOUNT NUM-
BER REQUIRED.—Such term shall not include any 
individual who does not have a valid social security 
account number. 
‘‘(3) SOCIAL
SECURITY
ACCOUNT
NUMBER.— 
The term ‘social security account number’ means a 
social security number issued to an individual by the 
Social Security Administration (other than a social 
security number issued pursuant to clause (II) (or 
that portion of clause (III) that relates to clause 
(II)) of section 205(c)(2)(B)(i) of the Social Security 
Act). 
‘‘(d) OTHER DEFINITIONS.—For purposes of this 
section— 
‘‘(1) SUCCESSFUL COMPANY.—The term ‘suc-
cessful company’ means any United States company 
or enterprise which the Secretary determines— 
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‘‘(A) maintains a long-term United States 
growth plan that meets the criteria established 
by the Secretary under this section, 
‘‘(B) as of the time of the determination, 
is experiencing financial performance and 
achieving a balance sheet would have qualified 
such company or enterprise for a certain level 
of loan from primary lending sources of such 
company or enterprise as of June 1, 2008, on 
the basis of credit and underwriting criteria in 
effect on such date, but cannot get access to 
loans from such lending sources as of the date 
of such determination because of current tight-
er credit and underwriting criteria, and 
‘‘(C) in the most recent calendar year had 
an average of not fewer than 5 employees and 
not more than 500 employees. 
‘‘(2) HIRING DATE.—The term ‘hiring date’ has 
the meaning given such term by section 51(d)(11). 
‘‘(3) UNITED
STATES.—The term ‘United 
States’ includes the District of Columbia and the 
possessions of the United States. 
‘‘(e) SPECIAL RULES.— 
‘‘(1) MONETIZATION OF CREDIT.—At the elec-
tion of the taxpayer, the credit allowed under this 
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section shall be treated as a credit allowed under 
subpart C and not allowed under subsection (a). 
‘‘(2) ELECTION NOT TO CLAIM CREDIT.—This 
section shall not apply to a taxpayer for any taxable 
year if such taxpayer elects to have this section not 
apply for such taxable year. 
‘‘(f) TERMINATION.—Subsection (a) shall not apply 
to taxable years beginning after December 31, 2014.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to general business credit) 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 adding at the end the following new paragraph: 
‘‘(37) the successful company job training cred-
it determined under section 45S(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 45R the following new item: 
‘‘Sec. 45S. Job training by successful companies.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
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SEC. 3. INCREASE IN EXPENSING BY SUCCESSFUL COMPA-
NIES. 
(a) IN GENERAL.—Section 179 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the 
following new subsection: 
‘‘(6) SPECIAL RULE FOR SUCCESSFUL COMPA-
NIES.— 
‘‘(A) IN GENERAL.—In the case of a suc-
cessful company, for each taxable year begin-
ning before 2015— 
‘‘(i) 
DOLLAR
LIMITATION.—Para-
graph (1) shall be applied by substituting 
‘$250,000’ for the dollar amount otherwise 
in effect for such taxable year. 
‘‘(ii) REDUCTION
IN
LIMITATION.— 
Paragraph (2) shall be applied by sub-
stituting ‘$800,000’ for the dollar amount 
otherwise in effect for such taxable year. 
‘‘(B) SUCCESSFUL
COMPANY.—For pur-
poses of subparagraph (A), the term ‘successful 
company’ has the meaning given such term by 
section 45S(d)(1).’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to taxable years beginning after 
December 31, 2010. 
Æ 
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