I 
117TH CONGRESS 
1ST SESSION H. R. 2984 
To amend the Internal Revenue Code of 1986 to provide a credit for 
employer-provided worker training. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 4, 2021 
Mr. KRISHNAMOORTHI (for himself, Mr. VAN DREW, Mr. MEUSER, Mr. 
EMMER, Ms. SPANBERGER, Ms. WILD, and Mrs. AXNE) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Education and Labor, for a period 
to be subsequently determined by the Speaker, in each case for consider-
ation of such provisions as fall within 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.— 
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(1) DETERMINATION OF CREDIT.—Subpart D 
of part IV of subchapter A of chapter 1 of the Inter-
nal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 
45U. 
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.— 
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‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘qualified training’ means 
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 section 1 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 
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‘‘(iv) a program which is sponsored 
and administered by an employer, industry 
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 
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‘‘(II) participates in a program 
under title IV of that Act (20 U.S.C. 
1070 et seq.). 
‘‘(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) of the Inter-
nal Revenue Code of 1986 and exempt 
from taxation under section 501(a) of 
such Code, 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) of the Internal Rev-
enue Code of 1986. 
‘‘(vi) RECOGNIZED
POSTSECONDARY 
CREDENTIAL.—The term ‘recognized post-
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secondary credential’ means a credential 
consisting of an industry-recognized certifi-
cate or certification, a certificate of com-
pletion of an apprenticeship, a license rec-
ognized 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 
$82,000. 
‘‘(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 expenses 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 
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expenses were paid or incurred begins in lieu of the 
CPI for calendar year 1982. 
‘‘(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 adjusted qualified training ex-
penditures 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.— 
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‘‘(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 
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(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. 
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‘‘(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 for the collection of demo-
graphic information with respect to the race, 
ethnicity, and gender of the individuals with re-
spect to whom a taxpayer makes qualified train-
ing expenditures for which a credit is allowed 
under this section.’’. 
(2) CREDIT
PART
OF
GENERAL
BUSINESS 
CREDIT.—Section 38(b) of the Internal Revenue 
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Code of 1986 is amended by striking ‘‘plus’’ at the 
end of paragraph (32), by striking the period at the 
end of paragraph (33) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(34) the employer-provided worker training 
credit determined under section 45U(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 45U 
for the taxable year which is equal to the amount of the 
credit determined for such taxable year under section 
45U(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. 45U. 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— 
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(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 45U 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 45U(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 45U(e)(4)(A)(ii) an amount equal to the payroll 
tax 
credit 
portion 
determined 
under 
section 
45U(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 
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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 
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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 
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