I 
118TH CONGRESS 
1ST SESSION H. R. 4685 
To amend the Internal Revenue Code of 1986 to allow employers a credit 
against income tax as an incentive to partner with educational institu-
tions to improve workforce development and job training for students 
and a credit against income tax for certain expenses of job training 
programs. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 17, 2023 
Ms. KUSTER 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 as an incentive to 
partner with educational institutions to improve work-
force development and job training for students and a 
credit against income tax for certain expenses of job 
training programs. 
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 ‘‘Workforce Develop-
ment Investment Act of 2023’’. 
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SEC. 2. CREDIT FOR EMPLOYERS WHICH PARTNER WITH 
EDUCATIONAL INSTITUTIONS TO IMPROVE 
WORKFORCE DEVELOPMENT AND JOB TRAIN-
ING FOR STUDENTS. 
(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. 45BB. EMPLOYERS PARTNERING WITH EDUCATIONAL 
INSTITUTIONS TO IMPROVE WORKFORCE DE-
VELOPMENT AND JOB TRAINING FOR STU-
DENTS. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the employer partnering credit determined under this sec-
tion for any taxable year is an amount equal to $5,000 
for each qualified educational institution engaged in a 
qualified partnership with the employer. 
‘‘(b) MAXIMUM CREDIT.— 
‘‘(1) IN
GENERAL.—The credit determined 
under this section for any taxable year shall not ex-
ceed $20,000. 
‘‘(2) CONTROLLED GROUPS.—All persons treat-
ed as a single employer under subsection (b), (c), 
(m), or (o) of section 414 shall be treated as a single 
employer for purposes of paragraph (1). 
‘‘(c) DEFINITIONS.—For purposes of this section— 
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‘‘(1) QUALIFIED EDUCATIONAL INSTITUTION.— 
The term ‘qualified educational institution’ means 
any community college, any other institution of high-
er education, and any area career and technical edu-
cation school. 
‘‘(2) COMMUNITY COLLEGE.—The term ‘com-
munity college’ means an institution of higher edu-
cation that— 
‘‘(A) admits as a regular student an indi-
vidual who is beyond the age of compulsory 
school attendance in the State in which the in-
stitution is located and who has the ability to 
benefit from the training offered by the institu-
tion, and 
‘‘(B) offers a 2-year program in engineer-
ing, mathematics, or the physical or biological 
sciences designed to prepare a student to work 
as a technician or at the semiprofessional level 
in engineering, scientific, or other technological 
fields requiring the understanding and applica-
tion of basic engineering, scientific, or mathe-
matical principles of knowledge. 
‘‘(3) INSTITUTION OF HIGHER EDUCATION.— 
The term ‘institution of higher education’ has the 
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meaning given such term in section 102 of the High-
er Education Act of 1965 (20 U.S.C. 1002). 
‘‘(4) AREA
CAREER
AND
TECHNICAL
EDU-
CATION SCHOOL.—The term ‘area career and tech-
nical education school’ has the meaning given such 
term in section 3 of the Carl D. Perkins Career and 
Technical Education Act of 2006 (29 U.S.C. 2302). 
‘‘(5) QUALIFIED
PARTNERSHIP.—Not later 
than six months after the date of the enactment of 
this section, the Secretary of Education, in consulta-
tion with the Secretary of Labor, shall define the 
term ‘qualified partnership’. Such term shall include 
a partnership through which— 
‘‘(A) an employer collaborates with an edu-
cational institution to help develop curriculum 
in order to improve workforce development and 
job training for students, 
‘‘(B) an employer helps provide instruction 
to students in the classroom, and 
‘‘(C) an employer provides internships, ap-
prenticeships, or other similar educational op-
portunities in the workplace for students. 
The Secretary shall, to the extent practicable, mini-
mize the burdens of educational institutions in any 
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qualification process or requirements prescribed 
under this paragraph. 
‘‘(d) CERTAIN RULES TO APPLY.—For purposes of 
this section, rules similar to the rules of subsections (c), 
(d), and (e) of section 52 shall apply.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘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 partnering credit deter-
mined under section 45BB.’’. 
(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 fol-
lowing new item: 
‘‘Sec. 45BB. Employers partnering with educational institutions to improve 
workforce development and job training for students.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
SEC. 3. TAX CREDIT FOR EMPLOYERS WHO ENGAGE IN 
QUALIFIED WORKER TRAINING. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986, as amended by the preceding provisions of this Act, 
is amended by adding at the end the following new section: 
‘‘SEC. 45CC. CREDIT FOR EMPLOYERS WHO ENGAGE IN 
QUALIFIED WORKER TRAINING. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of any employer, the worker training tax credit 
determined under this section with respect to any eligible 
employee of the employer is an amount equal to the lesser 
of— 
‘‘(1) 50 percent of the job training program ex-
penditures of the taxpayer with respect to such em-
ployee during the taxable year, or 
‘‘(2) $5,000. 
‘‘(b) JOB TRAINING PROGRAM EXPENSES.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘job training pro-
gram expenses’ means amounts paid or incurred by 
the employer for expenses incurred by or on behalf 
of an eligible employee for participation in a quali-
fied training program. 
‘‘(2) QUALIFIED
TRAINING
PROGRAM.—The 
term ‘qualified training program’ means— 
‘‘(A) a qualified partnership (as defined in 
section 45BB(c)(5)), or 
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‘‘(B) an apprenticeship program registered 
and certified with the Secretary of Labor under 
section 1 of the National Apprenticeship Act 
(29 U.S.C. 50). 
‘‘(c) ELIGIBLE EMPLOYEE.—For purposes of this 
section, the term ‘eligible employee’ means any employee 
of the employer who, while participating in the qualified 
training program, is— 
‘‘(1) employed on average at least 40 hours of 
service per week, or 
‘‘(2) in the case of a qualified training program 
with a qualified partnership (as defined in section 
45BB(c)(5)), meets such hourly work requirements 
as may be specified by the Secretary of Education 
in connection with such partnership. 
‘‘(d) RECAPTURE OF CREDIT FOR EMPLOYEE NOT 
PERFORMING MINIMUM SERVICE.— 
‘‘(1) IN
GENERAL.—In the case of any em-
ployee with respect to whom a credit is allowed 
under this section and whose employment is termi-
nated by the employer (other than by reason of such 
employee’s gross misconduct) before the end of the 
2-year period beginning on the first day of the em-
ployee’s study or training with respect to which a 
credit is allowed under this section, the tax of the 
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taxpayer under this chapter for the taxable year dur-
ing which such termination occurs shall be increased 
by an amount equal to— 
‘‘(A) the aggregate decrease in the credits 
allowed under section 38 for all prior taxable 
years which would have resulted if the job 
training program expenses with respect to such 
employee had been zero, multiplied by 
‘‘(B) the inclusion ratio. 
‘‘(2) INCLUSION RATIO.—For purposes of this 
subsection, the inclusion ratio is the ratio which— 
‘‘(A) an amount equal to the difference 
of— 
‘‘(i) the number of days in the 2-year 
period, over 
‘‘(ii) the number of days such em-
ployee was employed by the employer dur-
ing such 2-year period, bears to 
‘‘(B) the number of days in the 2-year pe-
riod. 
‘‘(e) CONTROLLED GROUPS.—For purposes of this 
section, all persons treated as a single employer under sub-
section (b), (c), (m), or (o) of section 414 shall be treated 
as a single employer.’’. 
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(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code, as 
amended by the preceding provisions of this Act, is amend-
ed by striking ‘‘plus’’ at the end of paragraph (41), by 
striking the period at the end of paragraph (42) and in-
serting ‘‘, plus’’, and by adding at the end the following 
new paragraph: 
‘‘(43) the worker training tax credit determined 
under section 45CC(a).’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code, as amended by the preceding provisions of 
this Act, is amended by adding at the end the following 
new item: 
‘‘Sec. 45CC. Credit for employers who engage in qualified worker training.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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