I
106TH CONGRESS
1ST SESSION
H. R. 204
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for high technology job training expenses.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 6, 1999
Mr. MORAN of Virginia 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 em-
ployers a credit against income tax for high technology
job training expenses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CREDIT FOR HIGH TECHNOLOGY JOB TRAIN-
ING EXPENSES.
(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:
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‘‘SEC. 45D. CREDIT FOR HIGH TECHNOLOGY JOB TRAINING.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the high technology job training credit determined under
this section is an amount equal to 50 percent of the quali-
fied high technology job training expenses paid or incurred
by the taxpayer during the taxable year.
‘‘(b) LIMITATION.—The credit allowed under sub-
section (a) shall not exceed $2,500 for the taxable year
with respect to each substantially full-time employee.
‘‘(c) QUALIFIED HIGH TECHNOLOGY JOB TRAINING
EXPENSE.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified high
technology job training expense’ means any expense
for educational assistance described in paragraph (1)
of section 127(c) for the training of a substantially
full-time employee in an information technology oc-
cupation.
‘‘(2) 
EXCEPTIONS.—Such 
term 
does 
not
include—
‘‘(A) expenses for which any other Federal
or State credit or payment is made; or
‘‘(B) expenses paid or incurred for a pro-
fessional conference or for an orientation pro-
gram.
‘‘(d) INFORMATION TECHNOLOGY OCCUPATION.—
For purposes of this section, the term ‘information tech-
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nology occupation’ means an occupation specializing in the
study, design, development, implementation, support, or
management of computer based information systems, such
as computer scientist, computer engineer, systems analyst,
or computer programmer.
‘‘(e) SUBSTANTIALLY FULL-TIME EMPLOYEE.—For
purposes of this section, the term ‘substantially full-time
employee’ means an employee of the taxpayer who is nor-
mally employed for at least 30 hours per week.
‘‘(f) AGGREGATION RULES.—All persons treated as
a single employer under subsection (a) or (b) of section
52 or subsection (m) or (o) of section 414 shall be treated
as one person for purposes of this section.
‘‘(g) TERMINATION.—This section shall not apply to
any expenses paid or incurred after December 31, 2003.’’
(b) CURRENT YEAR BUSINESS CREDIT CALCULA-
TION.—Subsection (b) of section 38 of such Code is
amended—
(1) by striking ‘‘plus’’ at the end of paragraph
(11);
(2) by striking the period at the end of para-
graph (12) and inserting ‘‘, plus’’; and
(3) by adding at the end the following:
‘‘(13) the high technology job training credit
determined under section 45D(a).’’
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(c) DISALLOWANCE OF DEDUCTION BY AMOUNT OF
CREDIT.—Section 280C of such Code (relating to certain
expenses for which credits are allowable) is amended by
adding at the end the following:
‘‘(d) CREDIT
FOR CERTAIN JOB TRAINING EX-
PENSES.—No deduction shall be allowed for that portion
of the qualified high technology job training expenses (as
defined in section 45D(c)) paid or incurred during the tax-
able year that is equal to the amount of credit determined
for the taxable year under section 45D(a). In the case of
a corporation which is a member of a controlled group of
corporations (within the meaning of section 52(a)) or a
trade or business which is treated as being under common
control with other trades or businesses (within the mean-
ing of section 52(b)), this subsection shall be applied
under rules prescribed by the Secretary similar to the
rules applicable under subsections (a) and (b) of section
52.’’
(d) DEDUCTION FOR UNUSED CREDIT.—Subsection
(c) of section 196 of such Code is amended—
(1) by striking ‘‘and’’ at the end of paragraph
(6);
(2) by striking the period at the end of para-
graph (7) and inserting ‘‘, and’’; and
(3) by adding at the end the following:
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‘‘(8) the high technology job training credit de-
termined under section 45D(a).’’
(e) LIMITATION ON CARRYBACK.—Subsection (d) of
section 39 of such Code is amended by adding at the end
the following:
‘‘(8) NO
CARRYBACK
OF
HIGH
TECHNOLOGY
JOB TRAINING CREDIT BEFORE EFFECTIVE DATE.—
No amount of unused business credit available under
section 45D may be carried back to a taxable year
beginning on or before the date of the enactment of
this paragraph.’’
(f) 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 45C the following:
‘‘Sec. 45D. Credit for high technology job training.’’
(g) 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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