Skills Renewal Act
This bill allows eligible individuals a refundable tax credit, up to $4,000 in a taxable year, for expenses paid for qualified training services. The bill defines
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7032 Introduced in House (IH)]
<DOC>
116th CONGRESS
2d Session
H. R. 7032
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 HOUSE OF REPRESENTATIVES
May 27, 2020
Mr. Kilmer (for himself, Mrs. Brooks of Indiana, Ms. Sewell of Alabama,
and Mr. Thompson of Pennsylvania) 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 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.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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