The Technology Education and Training Act of 2000, or House Resolution 5004, as published by the Technology Workforce Coalition

Legislation:  H.R. 5004
Technology Education & Training Act of 2000
This new version of the IT training tax credit to replace the H.R.838 legislation TWC advanced last year.

106th CONGRESS 2d Session

H. R. 5004

To amend the Internal Revenue Code of 1986 to allow credit against income tax for information technology training expenses, and for other purposes.

INTRODUCED IN THE HOUSE OF REPRESENTATIVES

July 27, 2000

Mr. WELLER (for himself, Mr. MORAN of Virginia, Mr. COX, Mr. TAUZIN, Mr. DAVIS of Virginia, Mr. SALMON, Mr. SMITH of Washington, Mrs. TAUSCHER, and Mr. DREIER) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Science, 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 allow credit against income tax for information technology training expenses, 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 `Technology Education and Training Act of 2000'.

SEC. 2. CREDIT FOR INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.

(a) IN GENERAL- Subpart B 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:

`SEC. 30B. INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.

`(a) GENERAL RULE- There shall be allowed as a credit against the tax imposed by this chapter an amount equal to 100 percent of information technology training program expenses paid or incurred by the taxpayer during the taxable year.

`(b) LIMITATION-

`(1) IN GENERAL- The amount of information technology training program expenses with respect to an individual which may be taken into account under subsection (a) for the taxable year shall not exceed $1,500.

`(2) LARGER CREDIT FOR PARTICIPATION IN CERTAIN PROGRAMS- The dollar amount in paragraph (1) shall be increased (but not above $2,000) by the amount information technology training program expenses paid or incurred by the taxpayer with respect to a program operated--

`(A) in an empowerment zone or enterprise community designated under part I of subchapter U,

`(B) in a school district in which at least 50 percent of the students attending schools in such district are eligible for free or reduced-cost lunches under the school lunch program established under the National School Lunch Act,

`(C) in an area designated as a disaster area by the Secretary of Agriculture or by the President under the Disaster Relief and Emergency Assistance Act in the taxable year or the 4 preceding taxable years,

`(D) in a rural enterprise community designated under section 766 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999,

`(E) in an area designated by the Secretary of Agriculture as a Rural Economic Area Partnership Zone, or

`(F) by an employer who has 200 or fewer employees for each working day in each of 20 or more calendar weeks in the current or preceding calendar year.

`(3) LIMITATION ON EMPLOYEES- In the case of an employee, the limitation under this subsection for any taxable year shall be reduced by the credit determined under this section for expenses with respect to such employee paid or incurred by such employee's employer during the taxable year of the employer ending with or within the employee's taxable year.

`(c) INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES- For purposes of this section--

`(1) IN GENERAL- The term `information technology training program expenses' means expenses incurred by reason of the participation of the taxpayer (or any employee of the taxpayer) in any information technology training program if such expenses lead to an industry-accepted IT Training Certification for the participant. Such term includes expenses paid for certification testing which is essential to assessing skill acquisition.

`(2) INFORMATION TECHNOLOGY TRAINING PROGRAM- The term `information technology training program' means a program for recognized information technology certifications--

`(A) by any information technology trade association or corporation, and

`(B) involving--

`(i) employers, and

`(ii) State training programs, school districts, university systems, higher education institutions (as defined in section 101(b) of the Higher Education Act of 1965), or approved commercial information technology training providers.

`(3) APPROVED COMMERCIAL INFORMATION TECHNOLOGY TRAINING PROVIDERS- The term `approved commercial information technology training providers' means a private sector provider of educational products and services utilized for training in information technology which is approved with respect to--

`(A) the curriculum that is used for the training, or

`(B) the technical knowledge of the instructors of such provider,

by the information technology association sponsoring such certifications or by 1 or more software publishers or hardware manufacturers the products of which are a subject of the training.

`(e) DENIAL OF DOUBLE BENEFIT- No deduction or credit under any other provision of this chapter shall be allowed with respect to information technology training program expenses (determined without regard to the limitation under subsection (c)).

`(f) ALLOCATIONS- For purposes of this section, rules similar to the rules of section 41(f)(2) shall apply.'

(b) CLERICAL AMENDMENT- The table of sections for subpart B 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:
`Sec. 30B. Information technology training program expenses.'

(c) EFFECTIVE DATE- The amendments made by this section shall apply to amounts paid or incurred after the date of enactment of this Act in taxable years ending after such date.

(d) CERTIFICATIONS- The National Science Foundation shall establish an advisory group (to be known as the `Information Technology Training Certification Board') composed of information technology certification and training associations and companies to develop a list of the latest industry certifications that will qualify for the credit under section 30B of the Internal Revenue Code of 1986. The Information Technology Training Certification Board shall be chaired by an information technology industry trade association and composed of not more than 15 members. Such Board shall meet at least annually and shall submit its annual recommended list of such certifications to the National Science Foundation not later than October 1 of each calendar year.