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.
The Investing in American Workers Act creates a new tax credit for employers who provide worker training programs to their lower-paid employees. Employers can claim a credit equal to 20 percent of qualifying training expenses that exceed their average spending from the previous three years, as long as the training leads to recognized credentials like industry certificates, apprenticeship completion, licenses, or degrees. The law covers training through apprenticeship programs, community colleges, career and technical schools, labor organizations, and employer-sponsored programs. Small businesses with less than $5 million in annual revenue can choose to apply their credit against their payroll taxes instead of income taxes, with a maximum payroll tax credit of $250,000 per year. The tax credit applies to training for non-highly compensated employees (those earning below 60 percent of a specified threshold) and does not include incidental costs like meals or transportation. The bill takes effect for tax years beginning after its enactment and directs the Labor and Treasury Departments to issue guidance within one year.
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