Technology Retraining and Investment Now Act for the 21st Century - Amends the Internal Revenue Code to allow a tax credit for 50 percent of the information and communications technology education and training program expenses of individuals and employees, up to $4,000 in a taxable year. Increases the allowable amount of such credit to $5,000 for expenses for a program operated: (1) in an empowerment zone, enterprise community, or renewal community; (2) in a school district in which at least 50 percent of the students are eligible for free or reduced-cost lunches; (3) in an federally-declared disaster area; (4) in certain rural areas receiving federal assistance; (5) in an Indian tribal jurisdiction; (6) by an employer with 200 or fewer employees during a specified period; or (7) for a disabled individual.
Defines "information technology education and training program expenses" to include: (1) course work; (2) certification testing; (3) apprenticeship programs registered by the Department of Labor; and (4) other expenses essential to assessing skill acquisition.
Redefines "eligible educational institution" to include a commercial information and communications technology training provider.
Establishes an Information Technology Training Certification Advisory Board to develop: (1) guidelines for computer science, information technology, and related college courses; and (2) a list of the information technology training and certifications that qualify for the tax credit established by this Act.
[Congressional Bills 110th Congress]
[From the U.S. Government Printing Office]
[H.R. 244 Introduced in House (IH)]
110th CONGRESS
1st Session
H. R. 244
To amend the Internal Revenue Code of 1986 to allow a credit against
income for certain education and training expenses, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 5, 2007
Mr. Weller of Illinois 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 a credit against
income for certain education and training expenses, and for other
purposes.
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 ``Technology Retraining and Investment
Now Act for the 21st Century''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--The Congress hereby finds the following:
(1) The value added by workers in the United States and in
other countries is increasingly a function of the aggregate
knowledge acquired by workers through the aggregate educational
and training investments of both governments and businesses.
(2) The aggregate investment by governments of many of the
trading partners of the United States in the education and
training of knowledge workers in those countries has exceeded
the aggregate per-worker investment by Federal, State, and
local governments in the United States.
(3) The disparity is evidenced by the declining educational
performance of students in the United States compared to their
counterparts in other countries.
(4) In an increasingly global and competitive marketplace
it is becoming increasingly difficult for United States-based
businesses to fund worker education and training that is
provided at no cost for similar workers in other countries by
their governments.
(5) The current global workforce environment creates
increasing competitive pressures on domestic companies to
utilize highly educated knowledge workers in other countries.
(6) It is in the interest of the United States government,
national security, the preservation of a strong middle class,
and the welfare of our Nation's workers to reverse this trend
in a fashion that is consistent with trade obligations and the
ability of domestic companies to compete globally.
(7) Public-private partnerships work well in the United
States to advance the needs of our citizens, businesses and
communities. The research and development tax credit under
section 41 of the Internal Revenue Code of 1986 is just one
example of maximizing the use of each sector's strength,
reducing development risk and public capital investment, and
improving cost effectiveness.
(8) Businesses are most adept at training our workforce
because they train employees for available jobs, develop and
utilize new training methods, and eliminate ineffective
trainers and training programs.
(9) With a substantial number of baby boomers retiring over
the next 20 years, the United States has to ensure that it is
capable of training its workforce for the high paying
information and communications technology jobs, whose payroll
contributions will help support the benefit programs of these
retirees, as well as providing incentives to help mature
workers retrain for new jobs after they retire, if they desire.
(b) Purposes.--
(1) It is the purpose of this Act to encourage businesses
and individuals to support the educational development of
knowledge workers in the United States by providing incentives
for information and communications technology education and
training investments, for workers requiring the use of those
skills in professions such as information or communications
technology, engineering, manufacturing and other fields, and
for other purposes.
(2) By encouraging employers to train more incumbent
workers and potential employees in the areas necessary to
expand and maintain their businesses, the United States will
better utilize available training dollars and maximize the
ability of newly trained individuals to utilize their acquired
skills.
SEC. 3. CREDIT FOR INFORMATION AND COMMUNICATIONS TECHNOLOGY EDUCATION
AND TRAINING PROGRAM EXPENSES.
(a) In General.--Subpart B 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:
``SEC. 30D. INFORMATION AND COMMUNICATIONS TECHNOLOGY EDUCATION AND
TRAINING PROGRAM EXPENSES.
``(a) Allowance of Credit.--
``(1) In general.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an
amount equal to 50 percent of information and communications
technology education and training program expenses paid or
incurred by the taxpayer for the benefit of--
``(A) in the case of a taxpayer engaged in a trade
or business, an employee of the taxpayer, or
``(B) in the case of a taxpayer who is an
individual not so engaged, such individual.
``(2) Coordination of credits.--Credit shall be allowable
to the employer with respect to an employee only to the extent
that the employee assigns some or all of the limitation
applicable to such employee under subsection (b) to such
employer.
``(b) Limitations.--
``(1) In general.--The amount of expenses with respect to
any individual which may be taken into account under subsection
(a) for the taxable year shall not exceed $4,000.
``(2) Increase in credit amount for participation in
certain programs and for certain individuals.--Paragraph (1)
shall be applied by substituting `$5,000' for `$4,000' in the
case of expenses--
``(A) with respect to a program operated--
``(i) in an empowerment zone or enterprise
community designated under part I of subchapter
U or a renewal community designated under part
I of subchapter X,
``(ii) in a school district in which at
least 50 percent of the students attending
schools in such district are eligible for free
or reduced-cost lunches under the school lunch
program established under the Richard B.
Russell National School Lunch Act,
``(iii) in an area designated as a disaster
area by the Secretary of Agriculture under
section 321 of the Consolidated Farm and Rural
Development Act or by the President under the
Robert T. Stafford Disaster Relief and
Emergency Assistance Act in the taxable year or
the 4 preceding taxable years,
``(iv) in a rural enterprise community
designated under section 766 of the
Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies
Appropriations Act, 1999 (112 Stat. 2681-37),
``(v) in an area designated by the
Secretary of Agriculture as a Rural Economic
Area Partnership Zone,
``(vi) in an area over which an Indian
tribal government (as defined in section
7701(a)(40)) has jurisdiction, or
``(vii) by an employer who has 200 or fewer
employees for each business day in each of 20
or more calendar weeks in the current or
preceding calendar year, or
``(B) in the case of an individual with a
disability.
``(c) Information Technology Education and Training Program
Expenses.--For purposes of this section--
``(1) In general.--The term `information technology
education and training program expenses' means expenses paid or
incurred by reason of the participation of the taxpayer (or any
employee of the taxpayer) in any information and communications
technology education and training program. Such expenses shall
include expenses paid in connection with--
``(A) course work,
``(B) certification testing,
``(C) programs carried out under the Act of August
16, 1937 (50 Stat. 664, chapter 663; 29 U.S.C. 50 et
seq.) which are registered by the Department of Labor,
and
``(D) other expenses that are essential to
assessing skill acquisition.
``(2) Information technology education and training
program.--The term `information technology education and
training program' means a training program in information and
communications technology workplace disciplines or other skill
sets which is provided in the United States by an accredited
college, university, private career school, postsecondary
educational institution, a commercial information technology
provider, or an employer-owned information technology training
organization.
``(3) Commercial information technology training
provider.--The term `commercial information technology training
provider' means a private sector organization providing an
information and communications technology education and
training program.
``(4) Employer-owned information technology training
organization.--The term `employer-owned information technology
training organization' means a private sector organization that
provides information technology training to its employees using
internal training development and delivery personnel. The
training programs must use industry-recognized training
disciplines and evaluation methods, comparable to institutional
and commercial training providers.
``(d) Denial of Double Benefit.--
``(1) Disallowance of other credits and deductions.--No
deduction or credit shall be allowed under any other provision
of this chapter for expenses taken into account in determining
the credit under this section.
``(2) Reduction for hope and lifetime learning credits.--
The amount taken into account under subsection (a) shall be
reduced by the information technology education and training
program expenses taken into account in determining the credits
under section 25A.
``(e) Certain Rules Made Applicable.--For purposes of this section,
rules similar to the rules of section 45A(e)(2) and subsections (c),
(d), and (e) of section 52 shall apply.
``(f) Application With Other Credits.--The credit allowed by
subsection (a) for any taxable year shall not exceed the excess (if
any) of--
``(1) the regular tax for the taxable year reduced by the
sum of the credits allowable under the subpart A and the
previous sections of this subpart, over
``(2) the tentative minimum tax for the taxable year.''.
(b) Clerical Amendment.--The table of sections for subpart B 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:
``Sec. 30D. Information and communications technology education and
training program expenses.''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts paid or incurred in taxable years beginning after
December 31, 2006.
SEC. 4. ELIGIBLE EDUCATIONAL INSTITUTION.
(a) In General.--Section 25A(f)(2) of the Internal Revenue Code of
1986 (relating to eligible educational institution) is amended to read
as follows:
``(2) Eligible educational institution.--The term `eligible
educational institution' means--
``(A) an institution--
``(i) which is described in section 101(b)
or 102(a) of the Higher Education Act of 1965,
and
``(ii) which is eligible to participate in
a program under title IV of such Act, or
``(B) a commercial information and communications
technology training provider (as defined in section
30D(c)(3)).''
(b) Conforming Amendment.--The second sentence of section 221(d)(2)
of the Internal Revenue Code of 1986 is amended by striking ``section
25A(f)(2)'' and inserting ``section 25A(f)(2)(A)''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2006.
SEC. 5. INFORMATION TECHNOLOGY TRAINING CERTIFICATION ADVISORY BOARD.
(a) Establishment.--There is established an Information Technology
Training Certification Advisory Board (in this section referred to as
the ``Board'').
(b) Membership.--The Board shall be composed of not more than seven
members appointed by the Secretary of the Treasury from among
individuals--
(1) associated with information technology certification
and training associations and businesses; and
(2) who are not officers or employees of the Federal
Government.
(c) Meetings.--The Board shall meet not less often than annually.
(d) Chairperson.--
(1) In general.--Subject to paragraph (2), the Board shall
elect a Chairperson from among its members.
(2) Chairperson.--The chairperson shall be an individual
who is a member of an information technology industry trade
association.
(e) Duties.--The Board shall develop guidelines for computer
science, information technology and directly related subjects for the
college courses, and a list of the information technology training and
certifications that qualify for the credit under section 30D of the
Internal Revenue Code of 1986, for approval by the Secretary of the
Treasury.
(f) Submission of List.--Not later than October 1, 2007, and each
year thereafter, the Board shall submit the list required under
subsection (e) to the Secretary of the Treasury.
(g) Board Personnel Matters.--
(1) Compensation of members.--Each member of the Board
shall serve without compensation.
(2) Travel expenses.--Each member of the Board shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business
in the performance of services for the Board.
(h) Termination of the Board.--Section 14(b) of the Federal
Advisory Committee Act (5 U.S.C. App.) shall not apply to the Board.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E27)
Referred to the House Committee on Ways and Means.
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