Twenty-First Century Manufacturing Skills and Jobs Act of 2014 - Directs the Secretary of the Treasury, on a quarterly basis, to make payments to an eligible community college in an amount equal to the aggregate new manufacturing job withholding matches for qualified training provided to job trainees who are U.S. citizens. Defines "qualified training" as education or training to provide an individual with the education or skills necessary to perform the job for which such individual will be employed or with licenses or certificates necessary for such employment. Requires that any job for which a trainee is hired be a new job.
Defines "eligible community college" as a public institution of higher education: (1) at which the majority of degrees awarded are two-year associate's degrees that are acceptable for full credit toward a baccalaureate degree, (2) that is located in a state that has a state new manufacturing jobs tax credit program in effect, and (3) that participates in such program by having in effect a contract that meets requirements of such program.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4831 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4831
To establish a Federal tax credit approximation matching program for
State new manufacturing jobs training tax credits, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 10, 2014
Mr. Kildee introduced the following bill; which was referred to the
Committee on Education and the Workforce, and in addition to the
Committee on Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish a Federal tax credit approximation matching program for
State new manufacturing jobs training tax credits, 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 ``Twenty-First Century Manufacturing
Skills and Jobs Act of 2014''.
SEC. 2. FEDERAL MATCHING PAYMENTS FOR STATE NEW MANUFACTURING JOBS
TRAINING TAX CREDITS.
(a) Authority To Make Payments.--Subject to subsection (h), the
Secretary of the Treasury shall, on a quarterly basis, make a payment
to each eligible community college in an amount equal to the aggregate
new manufacturing job withholding matches for all eligible trainees
with respect to such eligible community college for such quarter.
(b) New Manufacturing Job Tax Withholding Match.--In the case of
any quarter, the new manufacturing job withholding match with respect
to any eligible trainee is an amount equal to the amounts remitted as
described in subsection (d)(1)(A) during such quarter with respect to
such trainee by a participating eligible manufacturing employer.
(c) Eligible Community College.--For purposes of this section, the
term ``eligible community college'' means a public institution of
higher education, as defined in section 101 of the Higher Education Act
of 1965 (20 U.S.C. 1001)--
(1) at which the majority of degrees awarded, for any
academic year, are 2-year associate's degrees that are
acceptable for full credit toward a baccalaureate degree,
(2) that is located in a State that has a State new
manufacturing jobs training tax credit program in effect, and
(3) that participates in such program by having in effect a
contract that meets the requirements of subsection (d)(2).
(d) State New Manufacturing Jobs Training Tax Credit Program.--
(1) Programs described.--For purposes of this section, the
term ``State new manufacturing jobs training tax credit
program'' means a program established by a State government
that provides that, if an eligible community college and an
eligible manufacturing employer sign a contract that meets the
requirements of paragraph (2) with respect to an eligible
trainee--
(A) the State income taxes withheld by the employer
on behalf of the eligible trainee, once employed by the
employer, to the extent they do not exceed the cost of
qualified training specified in such contract, will not
be remitted to the State in payment of income taxes,
but will be remitted to the eligible community college,
(B) the amounts so remitted will be treated in the
hands of the eligible community college as payment for
education provided by such community college, and
(C) for purposes of determining the State income
tax liability of the eligible trainee, the amounts so
remitted will be treated as if they had been remitted
to the State in payment of income taxes owed by the
eligible trainee.
(2) Qualified contract.--A contract meets the requirements
of this paragraph if--
(A) the contract is between an eligible community
college located in the State that has the program
described in paragraph (1) and an eligible
manufacturing employer with at least 1 job site located
in such State,
(B) the contract meets all applicable requirements
under such State program,
(C) the contract provides that--
(i) the eligible community college will
directly provide qualified training to
individuals designated by the employer or will
contract with a provider of qualified training
to provide such training to such individuals,
(ii) the eligible community college will
not charge tuition or fees to such individuals,
(iii) the employer will hire such
individuals for full-time employment at a job
site located within the State,
(iv) such individuals will be paid by the
employer a wage that is not less than the
greater of--
(I) 175 percent of the Federal
minimum wage, or
(II) the amount specified under the
State program, and
(v) as provided under the State program,
the employer will remit the State income taxes
withheld by the employer on behalf of the
individual to the community college in payment
for the training, to the extent such taxes do
not exceed the cost described in subparagraph
(D),
(D) the contract specifies the entire cost of the
qualified training (including all costs for equipment
or instructional materials) that will be provided to
each individual, and
(E) the cost and terms specified under subparagraph
(D) are reasonable by market standards.
(3) Qualified training.--For purposes of this section, the
term ``qualified training'' means education or training which,
if completed, will provide the individual with--
(A) education or skills necessary to perform the
job for which such individual will be employed,
(B) education or skills necessary to obtain a
license required under Federal, State, or local
governmental regulation for the employment of the
individual in the job for which such individual will be
employed,
(C) a certificate or credential which is required
under Federal, State, or local governmental regulation
for the employment of the individual in the job for
which such individual will be employed, or
(D) a certificate or credential aligned with
national or regionally recognized industry standards
determined appropriate by the State.
(4) Job must be new job.--
(A) In general.--A State program will not be
treated as a State new manufacturing jobs training tax
credit program for purposes of this subsection unless
the program provides that, in order to be eligible to
participate, the employer must show with respect to
each eligible trainee that such eligible trainee is
hired for a job that--
(i) is a new job (which, for purposes of
this paragraph, may include a new position
within an existing job category), and not a job
of a recalled worker, a replacement job, or any
other job that existed in the employer's
business within the 1-year period preceding the
date of hire,
(ii) is not a job that existed in a
business operation or substantially similar
business operation of the employer formerly
located in another location which was closed or
substantially reduced by the employer, and
(iii) results in a net increase in
employment for the employer.
(B) Only u.s. employees taken into account.--For
purposes of subparagraph (A), only employees at job
sites located in the United States (including the
possessions of the United States) shall be taken into
account.
(5) Aggregation rules.--All persons treated as a single
employer under subsection (a) or (b) of section 52, or
subsection (m) or (o) of section 414 of the Internal Revenue
Code of 1986, shall be treated as a single employer for
purposes of this section.
(6) Cooperation with local workforce investment boards.--An
employer or eligible community college participating in a State
new manufacturing jobs training tax credit program may work
with local workforce investment boards established under
section 117 of the Workforce Investment Act of 1998 (29 U.S.C.
2832) in searching for individuals to hire and train through
such program.
(e) Eligible Trainee.--For purposes of this section, the term
``eligible trainee'' means an individual--
(1) who received qualified training through an eligible
community college pursuant to a contract that meets the
requirements of subsection (d)(2), under a State new
manufacturing jobs training tax credit program, and
(2) who is employed on a full-time basis, during the
quarter for which payment is made under subsection (a), by the
employer who was a party to such contract--
(A) at a job site located in the same State as the
eligible community college,
(B) at a wage that meets the requirements of
subsection (d)(2)(iii),
(C) in a job that meets the new job requirement of
subsection (d)(4), and
(D) in a job for which such qualified training is
required, either by law or regulation or by the
inherent requirements of the job.
(f) Eligible Manufacturing Employer.--For purposes of this section,
the term ``eligible manufacturing employer'' means any person--
(1) which employs individuals in the trade or business of
manufacturing,
(2) the manufacturing facilities of which are located in
the United States, and
(3) the primary business of which is classified in sector
31, 32, or 33 of the North American Industrial Classification
System.
(g) Appropriation.--Out of any sums in the Treasury not otherwise
appropriated, there are appropriated on an ongoing basis such sums as
are necessary to carry out this section.
(h) Remission of State Income Tax Withholdings Not Treated as
Payments for Training or Education.--In the case of an eligible
manufacturing employer, the amount of withheld State income tax which
is remitted by the employer to an eligible community college as
described in subsection (d)(1)(A) shall not be treated as an amount
paid or incurred by the employer for purposes of any credit or
deduction available under the Internal Revenue Code of 1986 to such
employer, but shall be treated as if such amount had been remitted to
the State in payment of income taxes owed by the employee.
(i) Tax Treatment of Payments With Respect to Eligible Trainee.--In
the case of an eligible trainee, neither--
(1) the amount of any withheld State income tax which is
remitted by an employer to an eligible community college as
described in subsection (d)(1)(A), nor
(2) the amount of any payment made under subsection (a),
shall be treated for purposes of the Internal Revenue Code of 1986 as
income of the eligible trainee. For purposes of determining the
deduction under section 164(a)(3) of such Code, amounts described in
paragraph (1) shall be treated as amounts paid for State income taxes
by the eligible trainee.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Higher Education and Workforce Training.
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