I 
119TH CONGRESS 
1ST SESSION H. R. 6752 
To amend the Internal Revenue Code of 1986 to provide a credit for 
employer-provided worker training. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 16, 2025 
Mr. KRISHNAMOORTHI introduced the following bill; which was referred to the 
Committee on Ways and Means, and in addition to the Committee on 
Education and Workforce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to provide 
a credit for employer-provided worker training. 
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 ‘‘Investing in American 
Workers Act’’. 
SEC. 2. EMPLOYER-PROVIDED WORKER TRAINING CREDIT. 
(a) IN GENERAL.— 
(1) DETERMINATION OF CREDIT.—Subpart D 
of part IV of subchapter A of chapter 1 of the Inter-
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
nal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 
45BB 
EMPLOYER-PROVIDED 
WORKER 
TRAINING 
CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
employer-provided worker training credit under this sec-
tion for the taxable year is an amount equal to 20 percent 
of the excess (if any) of— 
‘‘(1) the qualified training expenditures for the 
taxable year, over 
‘‘(2) the average of the adjusted qualified train-
ing expenditures for the 3 taxable years preceding 
the taxable year for which the credit is being deter-
mined. 
‘‘(b) QUALIFIED TRAINING EXPENDITURES.—For 
purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified train-
ing expenditures’ means any expenditures for the 
qualified training of any non-highly compensated 
employee. Such term shall not include any amounts 
paid for meals, lodging, transportation, or other 
services incidental to such qualified training. 
‘‘(2) QUALIFIED TRAINING.— 
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘qualified training’ means 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
training which results in the attainment of a 
recognized postsecondary credential and which 
is provided through— 
‘‘(i) an apprenticeship program reg-
istered under the Act of August 16, 1937 
(commonly known as the ‘National Ap-
prenticeship Act’; 50 Stat. 664, chapter 
663; 29 U.S.C. 50 et seq.), 
‘‘(ii)(I) a program of training services 
which is listed under section 122(d) of the 
Workforce Innovation and Opportunity Act 
(29 U.S.C. 3152(d)), or 
‘‘(II) 
an 
apprenticeship 
program 
which is registered or approved by a recog-
nized State apprenticeship agency (which 
uses a State apprenticeship council) in ac-
cordance with the first section of the Act 
referred to in clause (i), 
‘‘(iii) a program which is conducted 
by an area career and technical education 
school, a community college, or a labor or-
ganization, or 
‘‘(iv) a program which is sponsored 
and administered by an employer, industry 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
trade association, industry or sector part-
nership, or labor organization. 
‘‘(B) RELATED
DEFINITIONS.—In sub-
paragraph (A): 
‘‘(i) AREA
CAREER
AND
TECHNICAL 
EDUCATION SCHOOL.—The term ‘area ca-
reer and technical education school’ means 
such a school, as defined in section 3 of 
the Carl D. Perkins Career and Technical 
Education Act of 2006 (20 U.S.C. 2302), 
which participates in a program under that 
Act (20 U.S.C. 2301 et seq.). 
‘‘(ii) 
COMMUNITY
COLLEGE.—The 
term ‘community college’ means an institu-
tion which— 
‘‘(I) is a junior or community col-
lege as defined in section 312(f) of the 
Higher Education Act of 1965 (20 
U.S.C. 1058(f)), except that the insti-
tution need not meet the requirements 
of paragraph (1) of that section, and 
‘‘(II) participates in a program 
under title IV of that Act (20 U.S.C. 
1070 et seq.). 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(iii) INDUSTRY OR SECTOR PARTNER-
SHIP.—The term ‘industry or sector part-
nership’ has the meaning given such term 
under section 3 of the Workforce Innova-
tion and Opportunity Act (29 U.S.C. 
3102). 
‘‘(iv) 
INDUSTRY
TRADE
ASSOCIA-
TION.—The term ‘industry trade associa-
tion’ means an organization which— 
‘‘(I) is described in paragraph (3) 
or (6) of section 501(c) and exempt 
from taxation under section 501(a), 
and 
‘‘(II) is representing an industry. 
‘‘(v) 
LABOR
ORGANIZATION.—The 
term ‘labor organization’ means a labor or-
ganization, within the meaning of the term 
in section 501(c)(5). 
‘‘(vi) RECOGNIZED
POSTSECONDARY 
CREDENTIAL.—The term ‘recognized post-
secondary credential’ means a credential 
that is listed under section 122(d) of the 
Workforce Innovation and Opportunity Act 
(29 U.S.C. 3152(d)) for the State involved 
and consists of an industry-recognized cer-
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
tificate or certification, a certificate of 
completion of an apprenticeship, a license 
recognized by the State involved or Federal 
Government, or an associate or bacca-
laureate degree. 
‘‘(3) NON-HIGHLY COMPENSATED EMPLOYEE.— 
For purposes of paragraph (1), the term ‘non-highly 
compensated employee’ means an employee of the 
taxpayer whose remuneration for the taxable year 
for services provided to the taxpayer does not exceed 
60 percent of the amount applicable for such taxable 
year under clause (i) of section 414(q)(1)(B). 
‘‘(c) ADJUSTED QUALIFIED TRAINING EXPENDI-
TURES.—For purposes of this section, the term ‘adjusted 
qualified training expenses’ means, with respect to any 
taxable year— 
‘‘(1) the qualified training expenditures for 
such taxable year, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the taxable year for which the credit is being deter-
mined begins, except that section 1(f)(3)(A)(ii) shall 
be applied by using the CPI for the calendar year 
in which the taxable year in which qualified training 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00006
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
expenses were paid or incurred begins in lieu of the 
CPI for calendar year 2016. 
‘‘(d) SPECIAL RULES.—For purposes of this sec-
tion— 
‘‘(1) SPECIAL RULE IN CASE OF NO QUALIFIED 
TRAINING EXPENDITURES IN ANY OF 3 PRECEDING 
TAXABLE YEARS.— 
‘‘(A) TAXPAYERS TO WHICH PARAGRAPH 
APPLIES.—The credit under this section shall 
be determined under this paragraph if the tax-
payer has no qualified training expenditures in 
any one of the 3 taxable years preceding the 
taxable year for which the credit is being deter-
mined. 
‘‘(B) CREDIT
RATE.—The credit deter-
mined under this paragraph shall be equal to 
10 percent of the qualified training expendi-
tures for the taxable year. 
‘‘(2) AGGREGATION AND ALLOCATION OF EX-
PENDITURES, ETC.—Rules similar to the rules of 
paragraphs (1), (2), (3), (4), and (5) of section 
41(f) shall apply. 
‘‘(e) ELECTION TO APPLY CREDIT AGAINST PAY-
ROLL TAXES.— 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(1) IN GENERAL.—At the election of a quali-
fied small business or a qualified tax-exempt organi-
zation (as defined in section 3111(e)(5)(A)) for any 
taxable year, section 3111(g) shall apply to the pay-
roll tax credit portion of the credit otherwise deter-
mined under subsection (a) for the taxable year and 
such portion shall not be treated (other than for 
purposes of section 280C) as a credit determined 
under subsection (a). 
‘‘(2) PAYROLL
TAX
CREDIT
PORTION.—For 
purposes of this subsection, the payroll tax credit 
portion of the credit determined under subsection 
(a) with respect to any qualified small business or 
qualified tax-exempt organization for any taxable 
year is the least of— 
‘‘(A) the amount specified in the election 
made under this subsection, 
‘‘(B) the credit determined under sub-
section (a) for the taxable year (determined be-
fore the application of this subsection), or 
‘‘(C) in the case of a qualified small busi-
ness other than a partnership or S corporation, 
the amount of the business credit carryforward 
under section 39 carried from the taxable year 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00008
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
(determined before the application of this sub-
section to the taxable year). 
‘‘(3) QUALIFIED SMALL BUSINESS.—For pur-
poses of this subsection— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
small business’ means, with respect to any tax-
able year— 
‘‘(i) a corporation or partnership if 
the gross receipts (as determined under the 
rules of section 448(c)(3), without regard 
to subparagraph (A) thereof) of such enti-
ty for the taxable year is less than 
$5,000,000, and 
‘‘(ii) any person (other than a cor-
poration or partnership) who meets the re-
quirements of clause (i), determined— 
‘‘(I) by substituting ‘person’ for 
‘entity’, and 
‘‘(II) by only taking into account 
the aggregate gross receipts received 
by such person in carrying on all 
trades or businesses of such person. 
‘‘(B) LIMITATION.—Such term shall not 
include an organization which is exempt from 
taxation under section 501. 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00009
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(4) ELECTION.— 
‘‘(A) IN
GENERAL.—Any election under 
this subsection for any taxable year— 
‘‘(i) shall specify the amount of the 
credit to which such election applies, 
‘‘(ii) shall be made on or before the 
due date (including extensions) of— 
‘‘(I) in the case of a partnership, 
the return required to be filed under 
section 6031, 
‘‘(II) in the case of an S corpora-
tion, the return required to be filed 
under section 6037, and 
‘‘(III) in the case of any other 
qualified small business or qualified 
tax-exempt organization, the return of 
tax for the taxable year, and 
‘‘(iii) may be revoked only with the 
consent of the Secretary. 
‘‘(B) LIMITATION.—The amount specified 
in any election made under this subsection shall 
not exceed $250,000. 
‘‘(C) SPECIAL
RULE
FOR
PARTNERSHIPS 
AND S CORPORATIONS.—In the case of a part-
nership or S corporation, the election made 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00010
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
under this subsection shall be made at the enti-
ty level. 
‘‘(5) AGGREGATION RULES.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B)— 
‘‘(i) all members of the same con-
trolled group of corporations shall be treat-
ed as a single taxpayer, and 
‘‘(ii) all trades or businesses (whether 
or not incorporated) which are under com-
mon control shall be treated as a single 
taxpayer. 
‘‘(B) SPECIAL
RULES.—For purposes of 
this subsection and section 3111(g)— 
‘‘(i) each of the persons treated as a 
single taxpayer under subparagraph (A) 
may separately make the election under 
paragraph (1) for any taxable year, and 
‘‘(ii) the $250,000 amount under 
paragraph (3)(B) shall be allocated among 
all persons treated as a single taxpayer 
under subparagraph (A) in the manner 
provided by the Secretary which is similar 
to the manner provided under section 
41(f)(1). 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00011
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
‘‘(6) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be necessary to carry 
out the purposes of this subsection, including— 
‘‘(A) regulations to prevent the avoidance 
of the purposes of the limitations and aggrega-
tion rules under this subsection, 
‘‘(B) regulations to minimize compliance 
and recordkeeping burdens under this sub-
section, 
‘‘(C) regulations for recapturing the ben-
efit of credits determined under section 3111(g) 
in cases where there is a recapture or a subse-
quent adjustment to the payroll tax credit por-
tion of the credit determined under subsection 
(a), including requiring amended income tax re-
turns in the cases where there is such an ad-
justment, and 
‘‘(D) regulations to require the collection 
and reporting of demographic information with 
respect to the race, ethnicity, and gender of the 
individuals with respect to whom a taxpayer 
makes qualified training expenditures for which 
a credit is allowed under this section.’’. 
(2) CREDIT
PART
OF
GENERAL
BUSINESS 
CREDIT.—Section 38(b) of the Internal Revenue 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00012
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
Code of 1986 is amended by striking ‘‘plus’’ at the 
end of paragraph (40), by striking the period at the 
end of paragraph (41) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(42) the employer-provided worker training 
credit determined under section 45BB(a).’’. 
(3) COORDINATION
WITH
DEDUCTIONS.—Sec-
tion 280C of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
subsection: 
‘‘(i) 
EMPLOYER-PROVIDED
WORKER
TRAINING 
CREDIT.—No deduction shall be allowed for that portion 
of the expenses otherwise allowable as a deduction taken 
into account in determining the credit under section 45BB 
for the taxable year which is equal to the amount of the 
credit determined for such taxable year under section 
45BB(a).’’. 
(4) CLERICAL AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following new 
item: 
‘‘Sec. 45BB. Employer-provided worker training credit.’’. 
(b) CREDIT ALLOWED AGAINST ALTERNATIVE MIN-
IMUM TAX.—Subparagraph (B) of section 38(c)(4) of the 
Internal Revenue Code of 1986 is amended— 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00013
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
(1) by redesignating clauses (x), (xi), and (xii) 
as clauses (xi), (xii), and (xiii), respectively, and 
(2) by inserting after clause (ix) the following 
new clause: 
‘‘(x) the credit determined under sec-
tion 45BB with respect to an eligible small 
business (as defined in paragraph (5)(C), 
after application of rules similar to the 
rules of paragraph (5)(D)),’’. 
(c) PAYROLL TAX CREDIT.—Section 3111 of the In-
ternal Revenue Code of 1986 is amended by adding at the 
end the following new subsection: 
‘‘(g) CREDIT FOR WORKER TRAINING EXPENSES.— 
‘‘(1) IN GENERAL.—In the case of a taxpayer 
who has made an election under section 45BB(e) for 
a taxable year, there shall be allowed as a credit 
against the tax imposed by subsection (a) for the 
first calendar quarter which begins after the date on 
which the taxpayer files the return specified in sec-
tion 45BB(e)(4)(A)(ii) an amount equal to the pay-
roll tax credit portion determined under section 
45BB(e)(2). 
‘‘(2) LIMITATION.—The credit allowed by para-
graph (1) shall not exceed the tax imposed by sub-
section (a) for any calendar quarter on the wages 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00014
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
paid with respect to the employment of all individ-
uals in the employ of the employer. 
‘‘(3) CARRYOVER OF UNUSED CREDIT.—If the 
amount of the credit under paragraph (1) exceeds 
the limitation of paragraph (2) for any calendar 
quarter, such excess shall be carried to the suc-
ceeding calendar quarter and allowed as a credit 
under paragraph (1) for such quarter. 
‘‘(4) DEDUCTION
ALLOWED
FOR
CREDITED 
AMOUNTS.—The credit allowed under paragraph (1) 
shall not be taken into account for purposes of de-
termining the amount of any deduction allowed 
under chapter 1 for taxes imposed under subsection 
(a).’’. 
(d) SIMPLIFIED FILING FOR CERTAIN SMALL BUSI-
NESSES.—The Secretary of the Treasury, in consultation 
with the Administrator of the Small Business Administra-
tion, shall provide for a method of filing returns of tax 
and information returns required under the Internal Rev-
enue Code of 1986 in a simplified format, to the extent 
possible, for employers with less than $5,000,000 in an-
nual gross receipts (as determined under guidance pro-
vided by the Secretary). 
(e) REGULATIONS RELATING
TO POSTSECONDARY 
CREDENTIALS.—Not later than 1 year after the date of 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00015
Fmt 6652
Sfmt 6201
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS
the enactment of this Act, the Secretary of Labor, in con-
sultation with the Secretary of the Treasury, shall issue 
regulations or other guidance applying the definition of 
the term ‘‘recognized postsecondary credential’’ as pro-
vided in section 3 of the Workforce Innovation and Oppor-
tunity Act (29 U.S.C. 3102). 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
VerDate Sep 11 2014 
19:30 Jan 13, 2026
Jkt 069200
PO 00000
Frm 00016
Fmt 6652
Sfmt 6301
E:\BILLS\H6752.IH
H6752
ssavage on LAPJG3WLY3PROD with BILLS