H.R. 6752

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6752 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 6752

To amend the Internal Revenue Code of 1986 to provide a credit for 
employer-provided worker training.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

December 16, 2025

Mr. Krishnamoorthi introduced the following bill; which was referred to 
the Committee on Ways and Means, and in addition to the Committee on 
Education and Workforce, 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 amend the Internal Revenue Code of 1986 to provide a credit for 
employer-provided worker 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 ``Investing in American Workers Act''.

SEC. 2. EMPLOYER-PROVIDED WORKER TRAINING CREDIT.

(a) In General.--
(1) Determination of credit.--Subpart D 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 new section:

``SEC. 45BB EMPLOYER-PROVIDED WORKER TRAINING CREDIT.

``(a) In General.--For purposes of section 38, the employer-
provided worker training credit under this section for the taxable year 
is an amount equal to 20 percent of the excess (if any) of--
``(1) the qualified training expenditures for the taxable 
year, over
``(2) the average of the adjusted qualified training 
expenditures for the 3 taxable years preceding the taxable year 
for which the credit is being determined.
``(b) Qualified Training Expenditures.--For purposes of this 
section--
``(1) In general.--The term `qualified training 
expenditures' means any expenditures for the qualified training 
of any non-highly compensated employee. Such term shall not 
include any amounts paid for meals, lodging, transportation, or 
other services incidental to such qualified training.
``(2) Qualified training.--
``(A) In general.--For purposes of paragraph (1), 
the term `qualified training' means training which 
results in the attainment of a recognized postsecondary 
credential and which is provided through--
``(i) an apprenticeship program registered 
under the Act of August 16, 1937 (commonly 
known as the `National Apprenticeship Act'; 50 
Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),
``(ii)(I) a program of training services 
which is listed under section 122(d) of the 
Workforce Innovation and Opportunity Act (29 
U.S.C. 3152(d)), or
``(II) an apprenticeship program which is 
registered or approved by a recognized State 
apprenticeship agency (which uses a State 
apprenticeship council) in accordance with the 
first section of the Act referred to in clause 
(i),
``(iii) a program which is conducted by an 
area career and technical education school, a 
community college, or a labor organization, or
``(iv) a program which is sponsored and 
administered by an employer, industry trade 
association, industry or sector partnership, or 
labor organization.
``(B) Related definitions.--In subparagraph (A):
``(i) Area career and technical education 
school.--The term `area career and technical 
education school' means such a school, as 
defined in section 3 of the Carl D. Perkins 
Career and Technical Education Act of 2006 (20 
U.S.C. 2302), which participates in a program 
under that Act (20 U.S.C. 2301 et seq.).
``(ii) Community college.--The term 
`community college' means an institution 
which--
``(I) is a junior or community 
college as defined in section 312(f) of 
the Higher Education Act of 1965 (20 
U.S.C. 1058(f)), except that the 
institution need not meet the 
requirements of paragraph (1) of that 
section, and
``(II) participates in a program 
under title IV of that Act (20 U.S.C. 
1070 et seq.).
``(iii) Industry or sector partnership.--
The term `industry or sector partnership' has 
the meaning given such term under section 3 of 
the Workforce Innovation and Opportunity Act 
(29 U.S.C. 3102).
``(iv) Industry trade association.--The 
term `industry trade association' means an 
organization which--
``(I) is described in paragraph (3) 
or (6) of section 501(c) and exempt 
from taxation under section 501(a), and
``(II) is representing an industry.
``(v) Labor organization.--The term `labor 
organization' means a labor organization, 
within the meaning of the term in section 
501(c)(5).
``(vi) Recognized postsecondary 
credential.--The term `recognized postsecondary 
credential' means a credential that is listed 
under section 122(d) of the Workforce 
Innovation and Opportunity Act (29 U.S.C. 
3152(d)) for the State involved and consists of 
an industry-recognized certificate or 
certification, a certificate of completion of 
an apprenticeship, a license recognized by the 
State involved or Federal Government, or an 
associate or baccalaureate degree.
``(3) Non-highly compensated employee.--For purposes of 
paragraph (1), the term `non-highly compensated employee' means 
an employee of the taxpayer whose remuneration for the taxable 
year for services provided to the taxpayer does not exceed 60 
percent of the amount applicable for such taxable year under 
clause (i) of section 414(q)(1)(B).
``(c) Adjusted Qualified Training Expenditures.--For purposes of 
this section, the term `adjusted qualified training expenses' means, 
with respect to any taxable year--
``(1) the qualified training expenditures for such taxable 
year, multiplied by
``(2) the cost-of-living adjustment determined under 
section 1(f)(3) for the calendar year in which the taxable year 
for which the credit is being determined begins, except that 
section 1(f)(3)(A)(ii) shall be applied by using the CPI for 
the calendar year in which the taxable year in which qualified 
training expenses were paid or incurred begins in lieu of the 
CPI for calendar year 2016.
``(d) Special Rules.--For purposes of this section--
``(1) Special rule in case of no qualified training 
expenditures in any of 3 preceding taxable years.--
``(A) Taxpayers to which paragraph applies.--The 
credit under this section shall be determined under 
this paragraph if the taxpayer has no qualified 
training expenditures in any one of the 3 taxable years 
preceding the taxable year for which the credit is 
being determined.
``(B) Credit rate.--The credit determined under 
this paragraph shall be equal to 10 percent of the 
qualified training expenditures for the taxable year.
``(2) Aggregation and allocation of expenditures, etc.--
Rules similar to the rules of paragraphs (1), (2), (3), (4), 
and (5) of section 41(f) shall apply.
``(e) Election To Apply Credit Against Payroll Taxes.--
``(1) In general.--At the election of a qualified small 
business or a qualified tax-exempt organization (as defined in 
section 3111(e)(5)(A)) for any taxable year, section 3111(g) 
shall apply to the payroll tax credit portion of the credit 
otherwise determined under subsection (a) for the taxable year 
and such portion shall not be treated (other than for purposes 
of section 280C) as a credit determined under subsection (a).
``(2) Payroll tax credit portion.--For purposes of this 
subsection, the payroll tax credit portion of the credit 
determined under subsection (a) with respect to any qualified 
small business or qualified tax-exempt organization for any 
taxable year is the least of--
``(A) the amount specified in the election made 
under this subsection,
``(B) the credit determined under subsection (a) 
for the taxable year (determined before the application 
of this subsection), or
``(C) in the case of a qualified small business 
other than a partnership or S corporation, the amount 
of the business credit carryforward under section 39 
carried from the taxable year (determined before the 
application of this subsection to the taxable year).
``(3) Qualified small business.--For purposes of this 
subsection--
``(A) In general.--The term `qualified small 
business' means, with respect to any taxable year--
``(i) a corporation or partnership if the 
gross receipts (as determined under the rules 
of section 448(c)(3), without regard to 
subparagraph (A) thereof) of such entity for 
the taxable year is less than $5,000,000, and
``(ii) any person (other than a corporation 
or partnership) who meets the requirements of 
clause (i), determined--
``(I) by substituting `person' for 
`entity', and
``(II) by only taking into account 
the aggregate gross receipts received 
by such person in carrying on all 
trades or businesses of such person.
``(B) Limitation.--Such term shall not include an 
organization which is exempt from taxation under 
section 501.
``(4) Election.--
``(A) In general.--Any election under this 
subsection for any taxable year--
``(i) shall specify the amount of the 
credit to which such election applies,
``(ii) shall be made on or before the due 
date (including extensions) of--
``(I) in the case of a partnership, 
the return required to be filed under 
section 6031,
``(II) in the case of an S 
corporation, the return required to be 
filed under section 6037, and
``(III) in the case of any other 
qualified small business or qualified 
tax-exempt organization, the return of 
tax for the taxable year, and
``(iii) may be revoked only with the 
consent of the Secretary.
``(B) Limitation.--The amount specified in any 
election made under this subsection shall not exceed 
$250,000.
``(C) Special rule for partnerships and s 
corporations.--In the case of a partnership or S 
corporation, the election made under this subsection 
shall be made at the entity level.
``(5) Aggregation rules.--
``(A) In general.--Except as provided in 
subparagraph (B)--
``(i) all members of the same controlled 
group of corporations shall be treated as a 
single taxpayer, and
``(ii) all trades or businesses (whether or 
not incorporated) which are under common 
control shall be treated as a single taxpayer.
``(B) Special rules.--For purposes of this 
subsection and section 3111(g)--
``(i) each of the persons treated as a 
single taxpayer under subparagraph (A) may 
separately make the election under paragraph 
(1) for any taxable year, and
``(ii) the $250,000 amount under paragraph 
(3)(B) shall be allocated among all persons 
treated as a single taxpayer under subparagraph 
(A) in the manner provided by the Secretary 
which is similar to the manner provided under 
section 41(f)(1).
``(6) Regulations.--The Secretary shall prescribe such 
regulations as may be necessary to carry out the purposes of 
this subsection, including--
``(A) regulations to prevent the avoidance of the 
purposes of the limitations and aggregation rules under 
this subsection,
``(B) regulations to minimize compliance and 
recordkeeping burdens under this subsection,
``(C) regulations for recapturing the benefit of 
credits determined under section 3111(g) in cases where 
there is a recapture or a subsequent adjustment to the 
payroll tax credit portion of the credit determined 
under subsection (a), including requiring amended 
income tax returns in the cases where there is such an 
adjustment, and
``(D) regulations to require the collection and 
reporting of demographic information with respect to 
the race, ethnicity, and gender of the individuals with 
respect to whom a taxpayer makes qualified training 
expenditures for which a credit is allowed under this 
section.''.
(2) Credit part of general business credit.--Section 38(b) 
of the Internal Revenue Code of 1986 is amended by striking 
``plus'' at the end of paragraph (40), by striking the period 
at the end of paragraph (41) and inserting ``, plus'', and by 
adding at the end the following new paragraph:
``(42) the employer-provided worker training credit 
determined under section 45BB(a).''.
(3) Coordination with deductions.--Section 280C of the 
Internal Revenue Code of 1986 is amended by adding at the end 
the following new subsection:
``(i) Employer-Provided Worker Training Credit.--No deduction shall 
be allowed for that portion of the expenses otherwise allowable as a 
deduction taken into account in determining the credit under section 
45BB for the taxable year which is equal to the amount of the credit 
determined for such taxable year under section 45BB(a).''.
(4) Clerical amendment.--The table of sections for subpart 
D 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 new item:

``Sec. 45BB. Employer-provided worker training credit.''.
(b) Credit Allowed Against Alternative Minimum Tax.--Subparagraph 
(B) of section 38(c)(4) of the Internal Revenue Code of 1986 is 
amended--
(1) by redesignating clauses (x), (xi), and (xii) as 
clauses (xi), (xii), and (xiii), respectively, and
(2) by inserting after clause (ix) the following new 
clause:
``(x) the credit determined under section 
45BB with respect to an eligible small business 
(as defined in paragraph (5)(C), after 
application of rules similar to the rules of 
paragraph (5)(D)),''.
(c) Payroll Tax Credit.--Section 3111 of the Internal Revenue Code 
of 1986 is amended by adding at the end the following new subsection:
``(g) Credit for Worker Training Expenses.--
``(1) In general.--In the case of a taxpayer who has made 
an election under section 45BB(e) for a taxable year, there 
shall be allowed as a credit against the tax imposed by 
subsection (a) for the first calendar quarter which begins 
after the date on which the taxpayer files the return specified 
in section 45BB(e)(4)(A)(ii) an amount equal to the payroll tax 
credit portion determined under section 45BB(e)(2).
``(2) Limitation.--The credit allowed by paragraph (1) 
shall not exceed the tax imposed by subsection (a) for any 
calendar quarter on the wages paid with respect to the 
employment of all individuals in the employ of the employer.
``(3) Carryover of unused credit.--If the amount of the 
credit under paragraph (1) exceeds the limitation of paragraph 
(2) for any calendar quarter, such excess shall be carried to 
the succeeding calendar quarter and allowed as a credit under 
paragraph (1) for such quarter.
``(4) Deduction allowed for credited amounts.--The credit 
allowed under paragraph (1) shall not be taken into account for 
purposes of determining the amount of any deduction allowed 
under chapter 1 for taxes imposed under subsection (a).''.
(d) Simplified Filing for Certain Small Businesses.--The Secretary 
of the Treasury, in consultation with the Administrator of the Small 
Business Administration, shall provide for a method of filing returns 
of tax and information returns required under the Internal Revenue Code 
of 1986 in a simplified format, to the extent possible, for employers 
with less than $5,000,000 in annual gross receipts (as determined under 
guidance provided by the Secretary).
(e) Regulations Relating to Postsecondary Credentials.--Not later 
than 1 year after the date of the enactment of this Act, the Secretary 
of Labor, in consultation with the Secretary of the Treasury, shall 
issue regulations or other guidance applying the definition of the term 
``recognized postsecondary credential'' as provided in section 3 of the 
Workforce Innovation and Opportunity Act (29 U.S.C. 3102).
(f) 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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