I
104TH CONGRESS
2D SESSION
H. R. 2998
To amend the Internal Revenue Code of 1986 to allow a credit for increases
in the worker retraining expenditures of employers.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 29, 1996
Mr. TORRICELLI introduced the following bill; which was referred to the
Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow a
credit for increases in the worker retraining expenditures
of employers.
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 ‘‘Tax Credit for Worker
Retraining Act of 1996’’.
SEC. 2. CREDIT FOR INCREASES IN WORKER RETRAINING
EXPENDITURES.
(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. 45C. WORKER RETRAINING INCREASE CREDIT.
‘‘(a) IN GENERAL.—For purposes of section 38, the
worker retraining increase credit determined under this
section for the taxable year is, for any employer, the excess
(if any) of—
‘‘(1) the qualified worker retraining expenses
paid or incurred by such employer in such taxable
year, over
‘‘(2) the average of the qualified worker retrain-
ing expenses paid or incurred by such employer in
each of the 3 preceding taxable years.
‘‘(b) LIMITATION.—In no event shall the amount de-
termined under subsection (a)(2) be treated as less than
50 percent of the amount determined under subsection
(a)(1).
‘‘(c) QUALIFIED WORKER RETRAINING EXPENSES.—
For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified worker
retraining expenses’ means expenses paid or in-
curred by an employer for—
‘‘(A) a program provided by such employer
to train employees of such employer regarding
skills directly related to the specific jobs of such
employees, or
‘‘(B) courses provided by (or reimbursed
by) such employer to provide or improve the
skills necessary for employees of such employer
to advance in a career.
‘‘(2) LIMITATION.—Such term does not include,
for any taxable year, any expenses paid or incurred
with respect to any employee who is a member of the
group consisting of the highest paid 5 percent of the
employees of such employer for such taxable year.
‘‘(d) SPECIAL RULES.—Rules similar to the rules of
section 41(f) shall apply for purposes of this section.’’
(b) CARRYFORWARD, CARRYBACK, AND DEDUCTION
FOR UNUSED CREDITS.—
(1) CARRYFORWARD AND CARRYBACK.—Section
38 of such Code (relating to general business credit)
is amended by striking ‘‘plus’’ at the end of para-
graph (10), by striking the period at the end of
paragraph (11) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph:
‘‘(12) the worker retraining increase credit de-
termined under section 45C.’’
(2) TRANSITIONAL RULE FOR CARRYBACKS.—
Subsection (d) of section 39 of such Code (relating
to transitional rules) is amended by adding at the
end the following new paragraph:
‘‘(7) NO CARRYBACK OF SECTION 45C CREDIT
ENACTMENT.—No portion of the unused business
credit for any taxable year which is attributable to
the worker retraining increase credit determined
under section 45C may be carried back to a taxable
year ending before the date of the enactment of sec-
tion 45C.’’
(3) DEDUCTION FOR UNUSED CREDITS.—Sub-
section (c) of section 196 of such Code (relating to
deduction for certain unused business credits) is
amended by striking ‘‘and’’ at the end of paragraph
(6), by striking the period at the end of paragraph
(7) and inserting ‘‘, and’’, and by adding at the end
the following new paragraph:
‘‘(8) the worker retraining increase credit deter-
mined under section 45C.’’
(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 adding at the end the follow-
ing new item:
‘‘Sec. 45C. Worker retraining increase credit.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
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