H.R. 5493

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5493 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 5493

To amend the Internal Revenue Code of 1986 to allow a credit against 
tax for charitable donations to nonprofit organizations providing 
workforce training.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

September 18, 2025

Mr. Smucker (for himself, Mr. Smith of Nebraska, Mr. Kelly of 
Pennsylvania, and Mr. Miller of Ohio) 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 
tax for charitable donations to nonprofit organizations providing 
workforce training.

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 ``USA Workforce Investment Act''.

SEC. 2. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO WORKFORCE 
DEVELOPMENT OR APPRENTICESHIP TRAINING PROGRAMS.

(a) Allowance of Credit.--
(1) In general.--Subpart A of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is amended by 
inserting after section 25F the following new section:

``SEC. 25G. CONTRIBUTIONS TO WORKFORCE DEVELOPMENT AND APPRENTICESHIP 
TRAINING PROGRAMS.

``(a) Allowance of Credit.--In the case of an individual who is a 
citizen or resident of the United States (within the meaning of section 
7701(a)(9)), there shall be allowed as a credit against the tax imposed 
by this chapter for the taxable year an amount equal to the aggregate 
amount of qualified contributions made by the taxpayer during the year.
``(b) Limitations.--
``(1) In general.--The credit allowed under subsection (a) 
to any taxpayer for any taxable year shall not exceed $1,700.
``(2) Reduction based on state credit.--The amount allowed 
as a credit under subsection (a) for a taxable year shall be 
reduced by the amount allowed as a credit on any State tax 
return of the taxpayer for qualified contributions made by the 
taxpayer during the taxable year.
``(c) Definitions.--For purposes of this section--
``(1) Qualified contribution.--The term `qualified 
contribution' means a charitable contribution (as defined by 
section 170(c)) to a workforce development or apprenticeship 
training organization in the form of cash if such contribution 
is designated by such organization to be used only for the 
purpose of providing workforce development or apprenticeship 
training programs.
``(2) Workforce development or apprenticeship training 
organization.--The term `workforce development or 
apprenticeship training organization' means any organization 
which--
``(A) is described in section 501(c)(3), is exempt 
from tax under section 501(a), and is not a private 
foundation, and
``(B) is included on a list of providers prepared 
under subsection (d) of section 122 of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3152) by 
reason of having been determined to be eligible to 
offer a program under such section.
``(3) Workforce development or apprenticeship training 
program.--The term `workforce development or apprenticeship 
training program' means a program to provide training services 
(within the meaning of section 134(c)(3) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 3174(c)(3))).
``(d) Denial of Double Benefit.--Any qualified contribution for 
which a credit is allowed under this section shall not be taken into 
account as a charitable contribution for purposes of section 170.
``(e) Carryforward of Unused Credit.--
``(1) In general.--If the credit allowable under subsection 
(a) for any taxable year exceeds the limitation imposed by 
section 26(a) for such taxable year reduced by the sum of the 
credits allowable under this subpart (other than this section 
and sections 23, 25D, and 25E), such excess shall be carried to 
the succeeding taxable year and added to the credit allowable 
under subsection (a) for such taxable year.
``(2) Limitation.--No credit may be carried forward under 
this subsection to any taxable year following the fifth taxable 
year after the taxable year in which the credit arose. For 
purposes of the preceding sentence, credits shall be treated as 
used on a first-in first-out basis.''.
(2) Conforming amendments.--
(A) Section 25(e)(1)(C) of such Code is amended by 
striking ``and 25F'' and inserting ``25F, and 25G''.
(B) The table of sections for subpart A of part IV 
of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25E the 
following new item:

``Sec. 25G. Contributions to workforce development and apprenticeship 
training programs.''.
(b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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