I
105TH CONGRESS
2D SESSION
H. R. 4025
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for information technology training expenses paid
or incurred by the employer, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 10, 1998
Mr. CHRISTENSEN 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 information tech-
nology training expenses paid or incurred by the em-
ployer, 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. CREDIT FOR INFORMATION TECHNOLOGY
TRAINING PROGRAM 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 new section:
‘‘SEC. 45D. INFORMATION TECHNOLOGY TRAINING PRO-
GRAM EXPENSES.
‘‘(a) GENERAL RULE.—For purposes of section 38,
in the case of an employer, the information technology
training program credit determined under this section is
an amount equal to 20 percent of information technology
training program expenses paid or incurred by the tax-
payer during the taxable year.
‘‘(b) ADDITIONAL CREDIT PERCENTAGE FOR CER-
TAIN PROGRAMS.—The percentage under subsection (a)
shall be increased by 5 percentage points for information
technology training program expenses paid or incurred by
the taxpayer with respect to a program operated in—
‘‘(1) an empowerment zone or enterprise com-
munity designated under part I of subchapter U,
‘‘(2) a school district in which at least 50 per-
cent of the students attending schools in such dis-
trict are eligible for free or reduced-cost lunches
under the school lunch program established under
the National School Lunch Act (42 U.S.C. 1751 et
seq.), or
‘‘(3) an area designated as a disaster area by
the Secretary of Agriculture or by the President
under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.)
in the taxable year or the 4 preceding taxable years.
‘‘(c) LIMITATION.—The amount of information tech-
nology training program expenses with respect to an em-
ployee which may be taken into account under subsection
(a) for the taxable year shall not exceed $6,000.
‘‘(d) INFORMATION TECHNOLOGY TRAINING PRO-
GRAM EXPENSES.—For purposes of this section—
‘‘(1) IN
GENERAL.—The term ‘information
technology training program expenses’ means ex-
penses paid or incurred by reason of the participa-
tion of the employer in any information technology
training program.
‘‘(2) INFORMATION
TECHNOLOGY
TRAINING
PROGRAM.—The term ‘information technology train-
ing program’ means a program—
‘‘(A) for the training of computer program-
mers, systems analysts, and computer scientists
or engineers (as such occupations are defined
by the Bureau of Labor Statistics),
‘‘(B) involving a partnership of—
‘‘(i) employers, and
‘‘(ii) State training programs, school
districts, or university systems, and
‘‘(C) at least 50 percent of the costs of
which is paid or incurred by the employers.
‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction
or credit under any other provision of this chapter shall
be allowed with respect to information technology training
program expenses (determined without regard to the limi-
tation under subsection (c)).
‘‘(f) ALLOCATIONS.—For purposes of this section,
rules similar to the rules of section 41(f)(2) shall apply.’’
(b) CREDIT TO BE PART OF GENERAL BUSINESS
CREDIT.—Section 38(b) of such Code (relating to current
year business credit) is amended by striking ‘‘plus’’ at the
end of paragraph (11), by striking the period at the end
of paragraph (12) and inserting ‘‘, plus’’, and by adding
at the end the following new paragraph:
‘‘(13) the information technology training pro-
gram credit determined under section 45D.’’
(c) NO CARRYBACKS.—Subsection (d) of section 39
of such Code (relating to carryback and carryforward of
unused credits) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(9) NO CARRYBACK OF SECTION 45D CREDIT
BEFORE EFFECTIVE DATE.—No portion of the un-
used business credit for any taxable year which is
attributable to the information technology training
program credit determined under section 45D may
be carried back to a taxable year ending before the
date of the enactment of section 45D.’’
(d) 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. 45D. Information technology training program expenses.’’
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts paid or incurred after
the date of the enactment of this Act in taxable years end-
ing after such date.
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