[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9461 Reported in House (RH)]
<DOC>
Union Calendar No. 793
118th CONGRESS
2d Session
H. R. 9461
[Report No. 118-944]
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 6, 2024
Mr. Smucker introduced the following bill; which was referred to the
Committee on Ways and Means
December 24, 2024
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on
September 6, 2024]
_______________________________________________________________________
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 25E the following new section:
``SEC. 25F. CONTRIBUTIONS TO WORKFORCE DEVELOPMENT AND APPRENTICESHIP
TRAINING PROGRAMS.
``(a) Allowance of Credit.--In the case of an individual, 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 an amount
equal to the lesser of--
``(A) 25 percent of the sum of the amounts
described in paragraphs (1) and (2) of section 26(a)
for such taxable year, or
``(B) $150,000.
``(2) Allocation of volume cap.--The credit allowed under
subsection (a) to any taxpayer for any taxable year shall not
exceed the amount of the volume cap allocated by the Secretary
to such taxpayer under subsection (f) with respect to qualified
contributions made by the taxpayer during the taxable year.
``(3) 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 or marketable
securities 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,
section 23, and section 25D), 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.
``(f) Volume Cap.--
``(1) In general.--The volume cap applicable under this
section shall be $5,000,000,000 for each of calendar years 2025
through 2028, and zero for calendar years thereafter. Such
amount shall be allocated by the Secretary as provided in
paragraph (2) to taxpayers with respect to qualified
contributions made by such taxpayers, except that 10 percent of
such amount shall be divided evenly among the States, and shall
be available with respect to individuals residing in such
States.
``(2) First-come, first-serve.--For purposes of applying
the volume cap under this section, such volume cap for any
calendar year shall be allocated by the Secretary on a first-
come, first-serve basis, as determined based on the time
(during such calendar year) at which the taxpayer made the
qualified contribution with respect to which the allocation is
made. The Secretary shall not make any allocation of volume cap
for any calendar year after December 31 of such calendar year.
``(3) Real-time information.--For purposes of this section,
the Secretary shall develop a system to track the amount of
qualified contributions made during the calendar year for which
a credit may be claimed under this section, with such
information to be updated in real time.
``(4) Annual increases.--
``(A) In general.--In the case of the calendar year
after a high use calendar year, the dollar amount
otherwise in effect under subsection (a) for such
calendar year shall be equal to 105 percent of the
dollar amount in effect for such high use calendar
year.
``(B) High use calendar year.--For purposes of this
subsection, the term `high use calendar year' means any
calendar year for which 90 percent or more of the
volume cap in effect for such calendar year under
subsection (a) is allocated to taxpayers.
``(C) Prevention of decreases in annual volume
cap.--The volume cap in effect under subsection (a) for
any calendar year shall not be less than the volume cap
in effect under such subsection for the preceding
calendar year.
``(D) Publication of annual volume cap.--The
Secretary shall make publicly available the dollar
amount of the volume cap in effect under subsection (a)
for each calendar year.
``(5) States.--For purposes of this subsection, the term
`State' includes the District of Columbia.''.
(2) Conforming amendments.--
(A) Section 25(e)(1)(C) of such Code is amended by
striking ``and 25D'' and inserting ``, 25D, and 25F''.
(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. 25F. Contributions to workforce development and apprenticeship
training programs.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years ending after December 31, 2024.
Union Calendar No. 793
118th CONGRESS
2d Session
H. R. 9461
[Report No. 118-944]
_______________________________________________________________________
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.
_______________________________________________________________________
December 24, 2024
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed