Title: Career Advancement through New Skills Act
Policy area: Taxation

Summary:
Career Advancement through New Skills Act
This bill allows a tax credit for employers that is equal to 25% of the qualified education and training expenses paid or incurred for employees. The expenses taken into account for the credit may not exceed $5,000 with respect to any employee for any taxable year.
"Qualified education and training expenses" must be for a program specifically designed to maintain or improve skills of the employee which are necessary or useful either (1) in the employee's current position with the employer, or (2) in another position with the employer to which the employer reasonably anticipates the employee may transfer.
The credit does not apply to expenses for education or training programs that are provided by the employer or by certain family members or business partners of the employer.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3037 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 3037

   To amend the Internal Revenue Code of 1986 to provide a credit to 
    employers for certain employee education and training expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 28, 2019

 Mr. Thompson of California (for himself and Mr. Byrne) 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 provide a credit to 
    employers for certain employee education and training expenses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Career Advancement through New 
Skills Act''.

SEC. 2. CREDIT FOR EMPLOYEE EDUCATION AND TRAINING EXPENSES.

    (a) In General.--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 section:

``SEC. 45T. EMPLOYEE EDUCATION AND TRAINING CREDIT.

    ``(a) Allowance of Credit.--For purposes of section 38, the 
employee education and training credit determined under this section 
for the taxable year is an amount equal to 25 percent of the qualified 
education and training expenses paid or incurred by the taxpayer during 
such taxable year with respect to employees of the taxpayer.
    ``(b) Limitation.--The qualified education and training expenses 
taken into account under subsection (a) shall not exceed $5,000 with 
respect to any employee for any taxable year.
    ``(c) Qualified Education and Training Expenses.--For purposes of 
this section, the term `qualified education and training expenses' 
means amounts paid or incurred for a program of education or training 
of an employee of the taxpayer if such program is specifically designed 
to maintain or improve skills of such employee which are necessary or 
useful either--
            ``(1) in the employee's current employment position with 
        such employer, or
            ``(2) in another employment position with such employer to 
        which the employer reasonably anticipates such employee may 
        transfer.
Such term shall not include any amount paid or incurred for a program 
of education or training which is provided by such employer or by any 
person which bears a relationship to such employer described in section 
267(b) or 707(b)(1).
    ``(d) Special Rules.--
            ``(1) Aggregation.--All persons which are treated as a 
        single employer under subsections (a) and (b) of section 52 
        shall be treated as a single employer for purposes of this 
        section.
            ``(2) Denial of double benefit.--No deduction or credit 
        shall be allowed under any other provision of this chapter with 
        respect to the amount of the credit determined under this 
        section.
            ``(3) Trade or business requirement.--No credit shall be 
        allowed under this section with respect to any employee unless 
        such employee is providing services in a trade or business of 
        the taxpayer.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of the Internal Revenue Code of 1986 is amended by striking 
``plus'' at the end of paragraph (31), by striking the period at the 
end of paragraph (32) and inserting ``, plus'', and by adding at the 
end the following new paragraph:
            ``(33) the employee education and training credit 
        determined under section 45T.''.
    (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 following new item:

``Sec. 45T. Employee education and training credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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