I
106TH CONGRESS
1ST SESSION
H. R. 1824
To amend the Internal Revenue Code of 1986 to allow small business employ-
ers a credit against income tax for certain expenses for long-term training
of employees in highly skilled small business trades.
IN THE HOUSE OF REPRESENTATIVES
MAY 14, 1999
Mr. TALENT (for himself, Mr. WOLF, Mr. MASCARA, Mrs. JOHNSON of Con-
necticut, Mr. LATOURETTE, Mr. ENGLISH, Mr. PETERSON of Pennsyl-
vania, Mr. MOORE, Mr. PAUL, Mr. EHLERS, Mr. KLINK, Mr. MURTHA,
Mr. WYNN, Mr. HALL of Ohio, Mrs. EMERSON, Mr. MANZULLO, and Mr.
KOLBE) introduced the following bill; which was referred to the Com-
mittee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to allow small
business employers a credit against income tax for cer-
tain expenses for long-term training of employees in
highly skilled small business trades.
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 ‘‘Skilled Workforce En-
hancement Act of 1999’’.
SEC. 2. CREDIT FOR EXPENSES FOR LONG-TERM TRAINING
OF EMPLOYEES IN HIGHLY SKILLED SMALL
BUSINESS TRADES.
(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. EXPENSES FOR LONG-TERM TRAINING OF EM-
PLOYEES IN HIGHLY SKILLED SMALL BUSI-
NESS TRADES.
‘‘(a) GENERAL RULE.—For purposes of section 38,
in the case of a small business employer, the highly skilled
trades training credit determined under this section for
the taxable year is $15,000 for each employee having a
qualified training year ending with or within such taxable
year (whether or not such employee is an employee of the
taxpayer as of the close of such taxable year).
‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) SMALL BUSINESS EMPLOYER.—
‘‘(A) IN GENERAL.—The term ‘small busi-
ness employer’ means, with respect to any tax-
able year, any employer who employed an aver-
age of 250 or fewer employees on business days
during such taxable year.
‘‘(B) CONTROLLED
GROUPS.—For pur-
poses of subparagraph (A), all persons treated
as a single employer under subsection (b), (c),
(m), or (o) of section 414 shall be treated as a
single employer.
‘‘(2) QUALIFIED TRAINING YEAR.—
‘‘(A) IN
GENERAL.—The term ‘qualified
training year’ means each year during the
training period in which the employee received
at least 2,000 hours of training (including on-
the-job training) from the taxpayer (or any
predecessor) as an apprentice in any highly
skilled trade.
‘‘(B) HIGHLY SKILLED TRADES.—For pur-
poses of subparagraph (A), the term ‘highly
skilled trades’ means—
‘‘(i) precision machinists,
‘‘(ii) die makers,
‘‘(iii) mold makers,
‘‘(iv) tool and die designers,
‘‘(v) heating, ventilating, air condi-
tioning, refrigeration, and roofing contrac-
tors,
‘‘(vi) the trade of masonry, and
‘‘(vii) other highly skilled trades speci-
fied in regulations prescribed by the Sec-
retary.
Such term shall not include any trade if the
customary apprenticeship period for such trade
is less than 2 years.
‘‘(3) TRAINING
PERIOD.—The term ‘training
period’ means, with respect to an employee, the
period—
‘‘(A) beginning on the date that the em-
ployee begins employment with the taxpayer as
an apprentice in the highly skilled trade, and
‘‘(B) ending on the earlier of—
‘‘(i) the date that such apprenticeship
with the employer ends, or
‘‘(ii) the date which is 4 years after
the date referred to in subparagraph (A).
‘‘(c) COORDINATION WITH OTHER CREDITS.—The
amount of credit otherwise allowable under sections 51(a)
and 1396(a) with respect to any employee shall be reduced
by the credit allowed by this section with respect to such
employee.’’.
(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 (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) in the case of a small business employer
(as defined in section 45D(b)), the highly skilled
trades training credit determined under section
45D(a).’’.
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C of
such Code is amended by adding at the end the following
new subsection:
‘‘(d) CREDIT FOR TRAINING EXPENSES FOR EM-
PLOYEES
IN
HIGHLY
SKILLED
SMALL
BUSINESS
TRADES.—No deduction shall be allowed for that portion
of the expenses 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 45D(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. 45D. Expenses for long-term training of employees in highly
skilled small business trades.’’.
(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.
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