I 
108TH CONGRESS 
2D SESSION 
H. R. 5254 
To amend the Internal Revenue Code of 1986 to allow employers a credit 
against income tax for the costs of providing technical training for employees. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 7, 2004 
Mr. DAVIS of Florida (for himself, Mr. KIND, Mr. SMITH of Washington, Mr. 
BLUMENAUER, Mr. CHANDLER, Mr. DAVIS of Alabama, Mrs. DAVIS of 
California, Mr. DOOLEY of California, Mr. ETHERIDGE, Mr. FORD, Ms. 
HOOLEY of Oregon, Mr. LARSEN of Washington, Mr. MORAN of Virginia, 
Mrs. NAPOLITANO, Mr. PRICE of North Carolina, and Mr. SNYDER) in-
troduced 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 the costs of 
providing technical training for employees. 
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 ‘‘Up-Skilling Tax Credit 
Act of 2004’’.
SEC. 2. CREDIT TO EMPLOYERS FOR COST OF TECHNICAL 
TRAINING FOR EMPLOYEES. 
(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. 45G. EXPENSES FOR TECHNICAL TRAINING OF EM-
PLOYEES. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the employee technical training credit determined under 
this section for the taxable year is an amount equal to 
20 percent of the amount paid or incurred by the taxpayer 
for technical training for employees performing services in 
a trade or business of the taxpayer. 
‘‘(b) LIMITATIONS.— 
‘‘(1) ONLY JANUARY 1, 2004 EMPLOYEES.—The 
credit determined under this section shall apply only 
to training for individuals who were employees of the 
taxpayer on January 1, 2004. 
‘‘(2) PER EMPLOYEE LIMIT.—The credit deter-
mined under this section with respect to each em-
ployee for the taxable year shall not exceed $1,000, 
reduced by the credit determined under this section 
with respect to such employee for all prior taxable 
years.
‘‘(3) TRAINING
MUST
LEAD
TO
RECOGNIZED 
CERTIFICATE.—Only costs for training leading to an 
industry-recognized license or certificate may be 
taken into account under this section. 
‘‘(c) CERTAIN RULES TO APPLY.—Rules similar to 
the rules of section 51(i)(1) and 52 shall apply for pur-
poses of this section. 
‘‘(d) TERMINATION.—This section shall not apply to 
taxable years beginning after December 31, 2008.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code is 
amended by striking ‘‘plus’’ at the end of paragraph (14), 
by striking the period at the end of paragraph (15) and 
inserting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(16) the employee technical training credit de-
termined under section 45G(a).’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C of 
such Code is amended by adding at the end the following 
new subsection: 
‘‘(d) EMPLOYEE TECHNICAL TRAINING CREDIT.— 
No deduction shall be allowed for that portion of the ex-
penses otherwise allowable as a deduction for the taxable 
year which is equal to the amount of the credit determined 
for the taxable year under section 45G(a).’’.
(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 fol-
lowing new item: 
‘‘Sec. 45G. Expenses for technical training of employees.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid or incurred in 
the taxable years ending after the date of the enactment 
of this Act. 
Æ