Title: Skills Renewal Act
Policy area: Taxation

Summary:
Skills Renewal Act
This bill allows a refundable tax credit for qualified training services received by certain individuals who are unemployed in 2020 due to the coronavius (i.e., the virus that causes COVID-19) pandemic.The bill defines qualified training service as a course or program of study identified by the Workforce Innovation and Opportunity Act for a state, or as a course or program of study relating to computer science, technology, or another high need area, such as a coding boot camp, that has been precertified by the Department of Labor.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 132 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                 S. 132

 To amend the Internal Revenue Code of 1986 to establish a tax credit 
 for training services received by individuals who are unemployed as a 
                  result of the coronavirus pandemic.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 28, 2021

Ms. Klobuchar (for herself, Mr. Sasse, Mr. Scott of South Carolina, and 
  Mr. Booker) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to establish a tax credit 
 for training services received by individuals who are unemployed as a 
                  result of the coronavirus pandemic.

    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 ``Skills Renewal Act''.

SEC. 2. ESTABLISHMENT OF SKILLS TRAINING CREDIT.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36 the following new section:

``SEC. 36A. SKILLS TRAINING CREDIT.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
subtitle for the taxable year an amount equal to the lesser of--
            ``(1) the amount of expenses paid or incurred by such 
        individual during such taxable year for qualified training 
        services which are provided by a qualified entity, or
            ``(2) an amount equal to--
                    ``(A) $4,000, minus
                    ``(B) an amount equal to the sum of any credits 
                allowed to the taxpayer under this section for any 
                preceding taxable year.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Eligible individual.--
                    ``(A) In general.--The term `eligible individual' 
                means an individual who--
                            ``(i) became unemployed or furloughed 
                        during calendar year 2020 but was otherwise 
                        able to work and available for work within the 
                        meaning of applicable State law (as defined in 
                        section 205 of the Federal-State Extended 
                        Unemployment Compensation Act of 1970 (26 
                        U.S.C. 3304 note)),
                            ``(ii) during the period in which any 
                        qualified training service is provided to such 
                        individual by a qualified entity--
                                    ``(I) is not employed and has 
                                applied for or is receiving 
                                compensation (as defined in section 
                                3306(h)), including pandemic emergency 
                                unemployment compensation under section 
                                2107 of subtitle A of title II of 
                                division A of the CARES Act, and
                                    ``(II) informs such entity of their 
                                intent to claim the credit allowed 
                                under subsection (a) with respect to 
                                such service.
                    ``(B) Exclusion.--For purposes of subparagraph (A), 
                the term `eligible individual' shall not include an 
                individual whose employer has reduced their hours of 
                work and who receives compensation pursuant to a short-
                time compensation program (as defined in section 
                3306(v)).
            ``(2) Qualified entity.--The term `qualified entity' means 
        an entity that is--
                    ``(A) a provider included on a State list described 
                in section 122(d) of the Workforce Innovation and 
                Opportunity Act (29 U.S.C. 3152(d)); or
                    ``(B) a provider of qualified training services 
                that has been precertified by the Secretary of Labor 
                under section 3 of the Skills Renewal Act.
            ``(3) Qualified training service.--The term `qualified 
        training service' means a course or program of study that--
                    ``(A) is included on a list described in section 
                122(d) of the Workforce Innovation and Opportunity Act 
                (29 U.S.C. 3152(d)) for a State, or
                    ``(B) is a course or program of study relating to 
                computer science, technology, or another high-need 
                area, such as a coding boot camp, that has been 
                precertified by the Secretary of Labor under section 3 
                of the Skills Renewal Act.
    ``(c) Coordination With American Opportunity and Lifetime Learning 
Credits.--For purposes of subsection (a)(1), the amount of expenses 
paid or incurred by an eligible individual during such taxable year for 
qualified training services shall be reduced--
            ``(1) as provided in section 25A(g)(2), and
            ``(2) by the amount of such expenses which were taken into 
        account in determining the credit allowed to the taxpayer or 
        any other person under section 25A.
    ``(d) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the provisions of this section.
    ``(e) Termination.--This section shall not apply to expenses paid 
or incurred during taxable years beginning after December 31, 2021.''.
    (b) Information Reporting Relating to Qualified Training 
Services.--Subpart B of part III of subchapter A of chapter 61 of the 
Internal Revenue Code of 1986 is amended by adding at the end the 
following new section:

``SEC. 6050Z. RETURNS RELATING TO QUALIFIED TRAINING SERVICES.

    ``(a) Requirement of Reporting.--Any qualified entity which, in the 
course of a trade or business and for any calendar year, receives 
payments from any electing individual with respect to qualified 
training services provided by such entity shall make the return 
described in subsection (b) with respect to each such individual at 
such time as the Secretary may by regulations prescribe.
    ``(b) Return.--A return is described in this subsection if such 
return--
            ``(1) is in such form as the Secretary may prescribe, and
            ``(2) contains--
                    ``(A) the name, address, and TIN of each electing 
                individual from whom a payment described in subsection 
                (a) was received during the calendar year,
                    ``(B) the aggregate amount of such payments 
                received by such individual during such calendar year 
                and the date and amount of each such payment, and
                    ``(C) such other information as the Secretary may 
                require.
    ``(c) Electing Individual.--The term `electing individual' means an 
individual who has indicated to the qualified entity their intention to 
claim the credit allowed under section 36A with respect to the 
qualified training services provided by such entity.
    ``(d) Statement To Be Furnished to Individuals With Respect to Whom 
Information Is Required.--
            ``(1) In general.--Every qualified entity required to make 
        a return under subsection (a) shall furnish to each electing 
        individual whose name is required to be set forth in such 
        return a written statement showing--
                    ``(A) the name, address, and phone number of the 
                information contact of the qualified entity required to 
                make such a return, and
                    ``(B) the aggregate amount of payments made by the 
                individual to the qualified entity required to be shown 
                on the return.
            ``(2) Furnishing of information.--The written statement 
        required under paragraph (1) shall be furnished to the 
        individual on or before January 31 of the year following the 
        calendar year for which the return under subsection (a) is 
        required to be made.
    ``(e) Definitions.--The terms `qualified entity' and `qualified 
training services' have the same meaning given such terms under section 
36A(b).
    ``(f) Regulations and Guidance.--The Secretary may prescribe such 
regulations and other guidance as may be appropriate or necessary to 
carry out the purpose of this section.''.
    (c) Clerical Amendments.--
            (1) Section 6211(b)(4)(A) of the Internal Revenue Code of 
        1986 is amended by inserting ``36A,'' after ``36,''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by inserting 
        after the item relating to section 36 the following new item:

``Sec. 36A. Skills Training Credit.''.
            (3) The table of sections for subchapter A of chapter 61 of 
        such Code is amended by adding at the end the following new 
        item:

``Sec. 6050Z. Returns relating to qualified training services.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to expenses paid or incurred during taxable years beginning after 
December 31, 2019.

SEC. 3. PRECERTIFICATION BY SECRETARY OF LABOR.

    (a) In General.--The Secretary of Labor shall establish a process 
through which the Secretary shall precertify providers of courses or 
programs of training services as qualified entities providing qualified 
training services (as such terms are defined in section 36A(b) of the 
Internal Revenue Code of 1986), to enable the providers and courses or 
programs to qualify for the tax credit provided under such section 36A.
    (b) Establishment of Precertification Requirements.--
            (1) In general.--By not later than 60 days after the date 
        of enactment of this Act, the Secretary of Labor shall create 
        and publish the precertification requirements--
                    (A) for a provider to be a qualified entity for 
                purposes of section 36A(b)(2)(B) of the Internal 
                Revenue Code of 1986, and
                    (B) for a course or program of study related to a 
                high-need area, as determined by the Secretary of 
                Labor, to be a qualified training service for purposes 
                of section 36A(b)(3)(B) of such Code.
            (2) Considerations of high-need areas.--In determining the 
        high-need areas for purposes of paragraph (1)(B), the Secretary 
        of Labor shall--
                    (A) include computer science and technology, and
                    (B) consider--
                            (i) the graduate areas of national need 
                        designated by the Secretary of Education under 
                        section 712(b) of the Higher Education Act of 
                        1965 (20 U.S.C. 1135a(b)), and
                            (ii) the STEM Designated Degree Program 
                        list issued by the Department of Homeland 
                        Security for purposes of the 24-month optional 
                        practical training extension described in 
                        section 214.2(f)(10)(ii) (C) of title 8, Code 
                        of Federal Regulations.
            (3) Precertification period.--If the Secretary of Labor 
        precertifies a provider and a course or program of study under 
        this section, such provider and course or program of study 
        shall be considered to be a qualified entity for purposes of 
        section 36A(b)(2)(B) of the Internal Revenue Code of 1986 and a 
        qualified training service for purposes of section 
        36(A)(b)(3)(B) of such Code, for the entire period--
                    (A) beginning on the date of this Act, and
                    (B) ending on December 31, 2021.
    (c) Application for Precertification.--
            (1) In general.--A provider of training services that 
        desires to be precertified as a qualified provider that offers 
        a qualified training service shall submit an application to the 
        Secretary of Labor at such time, in such manner, and containing 
        such information as the Secretary may require.
            (2) Contents.--The Secretary shall ensure that the 
        application required under this paragraph--
                    (A) is streamlined and easy to complete, and
                    (B) includes, at a minimum, information and data 
                regarding--
                            (i) the credential earned through the 
                        course or program,
                            (ii) the average student completion rate 
                        for the program for the 3-year period preceding 
                        the date of application,
                            (iii) the costs of enrollment in the 
                        program,
                            (iv) the average employment rate for 
                        individuals who complete the program during 
                        such period, and
                            (v) the average earnings for individuals 
                        who complete the program during such period.
            (3) Notification.--In any case where an individual 
        enrolling in a training service notifies a provider of training 
        services that the individual intends to claim the credit 
        allowed under section 36A of the Internal Revenue Code of 1986 
        with respect to the training service, the provider shall--
                    (A) inform the individual if the provider and the 
                service qualify as a qualified training provider and 
                qualified training service for purposes of such 
                section, and
                    (B) if the provider has applied but has not yet 
                received precertification for the provider or program 
                from the Secretary of Labor under this section, alert 
                the individual that the provider and program has not 
                yet been precertified.
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