Up-Skilling Tax Credit Act of 2005

Up-Skilling Tax Credit Act of 2005 - Amends the Internal Revenue Code to allow a general business tax credit for up to 20 percent of the cost of technical training for employees performing services in a trade or business of the taxpayer. Limits the amount of the credit to $1,000 for each employee, reduced by credit amounts for all prior taxable years. Terminates the credit after 2009.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2801 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2801

To amend the Internal Revenue Code of 1986 to allow employers a credit 
 against income tax for the costs of providing technical training for 
                               employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              June 8, 2005

Mr. Davis of Florida (for himself, Mr. Larsen of Washington, Mrs. Davis 
     of California, Ms. Hooley, Mr. Ford, Mr. Snyder, Mr. Smith of 
Washington, Mr. Paul, and Mrs. McCarthy) 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 allow employers a credit 
 against income tax for the costs of providing technical training for 
                               employees.

    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 ``Up-Skilling Tax Credit Act of 
2005''.

SEC. 2. CREDIT TO EMPLOYERS FOR COST OF TECHNICAL TRAINING FOR 
              EMPLOYEES.

    (a) In General.--Subpart D of part IV of subchapter 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. 45J. EXPENSES FOR TECHNICAL TRAINING OF EMPLOYEES.

    ``(a) General Rule.--For purposes of section 38, the employee 
technical training credit determined under this section for the taxable 
year is an amount equal to 20 percent of the amount paid or incurred by 
the taxpayer for technical training for employees performing services 
in a trade or business of the taxpayer.
    ``(b) Limitations.--
            ``(1) Only january 1, 2005 employees.--The credit 
        determined under this section shall apply only to training for 
        individuals who were employees of the taxpayer on January 1, 
        2005.
            ``(2) Per employee limit.--The credit determined under this 
        section with respect to each employee for the taxable year 
        shall not exceed $1,000, reduced by the credit determined under 
        this section with respect to such employee for all prior 
        taxable years.
            ``(3) Training must lead to recognized certificate.--Only 
        costs for training leading to an industry-recognized license or 
        certificate may be taken into account under this section.
    ``(c) Certain Rules to Apply.--Rules similar to the rules of 
sections 51(i)(1) and 52 shall apply for purposes of this section.
    ``(d) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2009.''.
    (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 (18), by striking the period at the end of paragraph (19) and 
inserting ``, plus'', and by adding at the end the following new 
paragraph:
            ``(20) the employee technical training credit determined 
        under section 45J(a).''.
    (c) Denial of Double Benefit.--Section 280C of such Code is amended 
by adding at the end the following new subsection:
    ``(e) Employee Technical Training Credit.--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 45J(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 following new item:

``Sec. 45J. Expenses for technical training of employees.''.
    (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.
                                 <all>