To amend the Internal Revenue Code of 1986 to provide employers a double deduction of certain employee training expenses.

Amends the Internal Revenue Code to allow a special tax deduction for employee training expenses that are: (1) also deductible as an ordinary and necessary business expense; (2) incurred under the National Apprenticeship Act or under a recognized State program; and (3) at least one percent of the total yearly wages paid by the employer claiming a deduction.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5366 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 5366

   To amend the Internal Revenue Code of 1986 to provide employers a 
        double deduction of certain employee training expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 16, 2004

  Mr. Foley 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 employers a 
        double deduction of certain employee training expenses.

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

SECTION 1. DOUBLE DEDUCTION OF CERTAIN EMPLOYEE TRAINING EXPENSES.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to itemized deductions for 
individuals and corporations) is amended by adding at the end the 
following new section:

``SEC. 200. DOUBLE DEDUCTION OF CERTAIN EMPLOYEE TRAINING EXPENSES.

    ``(a) In General.--There is allowed as a deduction amounts paid or 
incurred by the taxpayer during the taxable year for the training of 
employees of such taxpayer if--
            ``(1) such amounts are also deductible by the taxpayer for 
        such taxable year as ordinary and necessary business expenses 
        under section 162(a), and
            ``(2) such training constitutes--
                    ``(A) an apprenticeship program recognized and 
                certified by the Secretary of Labor under section 1 of 
                the National Apprenticeship Act (29 U.S.C. 50), or
                    ``(B) a program licensed, registered, or certified 
                by a State.
    ``(b) Limitation Based on Wages.--No deduction shall be allowed 
under this section to any taxpayer for any taxable year unless the 
amount of the deduction which would (but for this subsection) be so 
allowed equals or exceeds 1 percent of the total wages paid or incurred 
by such employer for such taxable year.''.
    (b) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by adding at the end 
the following new item:

``Sec. 200. Double deduction of certain employee training expenses.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenses paid or incurred in taxable years ending after the 
date of the enactment of this Act.
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