H.R.5869

            I 

116TH CONGRESS 
2D SESSION H. R. 5869 

To amend the Internal Revenue Code to provide business with a tax credit 
for investing in work-based learning for workers with low skill levels. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 12, 2020 
Mr. HORSFORD (for himself and Mr. GUTHRIE) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL 
To amend the Internal Revenue Code to provide business 

with a tax credit for investing in work-based learning 
for workers with low skill levels. 

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled, 2

SECTION 1. SHORT TITLE. 3

This Act may be cited as the ‘‘Skill and Knowledge 4

Investments Leverage Leaders’ Untapped Potential Tax 5

Credit Act of 2020’’ or the ‘‘SKILL UP Act of 2020’’. 6

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2 

•HR 5869 IH

SEC. 2. WORK OPPORTUNITY TAX CREDIT FOR PARTICIPA-1

TION IN QUALIFYING WORK-BASED LEARN-2

ING PROGRAMS. 3

(a) IN GENERAL.—Paragraph (1) of section 51(d) of 4

the Internal Revenue Code of 1986 is amended by striking 5

‘‘or’’ at the end of subparagraph (I), by striking the period 6

at the end of subparagraph (J) and inserting ‘‘, or’’, and 7

by inserting after subparagraph (J) the following: 8

‘‘(K) a qualified work-based learning par-9

ticipant.’’. 10

(b) WAGES PER YEAR TAKEN INTO ACCOUNT.— 11

Paragraph (3) of section 51(b) of such Code is amended 12

by inserting ‘‘or who is a qualified work-based learning 13

participant’’ after ‘‘subsection (d)(3)(A)(ii)(II)’’. 14

(c) QUALIFIED WORK-BASED LEARNING PARTICI-15

PANT.—Section 51(d) of such Code is amended by adding 16

at the end the following: 17

‘‘(16) QUALIFIED WORK-BASED LEARNING PAR-18

TICIPANT.— 19

‘‘(A) IN GENERAL.—The term ‘qualified 20

work-based learning participant’ means an indi-21

vidual who— 22

‘‘(i) is a member of one of the tar-23

geted group referred to in subparagraphs 24

(A) through (J) of paragraph (1), and 25

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3 

•HR 5869 IH

‘‘(ii) enrolled in a qualifying work- 1

based learning opportunity either— 2

‘‘(I) within 3-month period begin-3

ning on the hiring date, or 4

‘‘(II) in the case of a program 5

described in subparagraph (B)(iii), 6

during the six-month period prior to 7

the hiring date. 8

‘‘(B) QUALIFYING WORK-BASED LEARNING 9

OPPORTUNITY.—For the purpose of this para-10

graph, the term ‘qualifying work-based learning 11

opportunity’ means— 12

‘‘(i) an apprenticeship program reg-13

istered under the Act of August 16, 1937 14

(commonly known as the National Appren-15

ticeship Act; 50 Stat. 664, chapter 663; 29 16

U.S.C. 50 et seq.), 17

‘‘(ii) a program that has been ap-18

proved by the designated local agency and 19

that may be provided directly by an em-20

ployer, or in partnership with one or more 21

training providers, in which— 22

‘‘(I) the training is provided to 23

individuals who are full-time employ-24

ees of the employer, 25

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4 

•HR 5869 IH

‘‘(II) training consists of on the 1

job instruction or a combination of on 2

the job and classroom instruction, and 3

‘‘(III) successful completion of 4

the training program, or modules of 5

the training program— 6

‘‘(aa) provides for an in-7

crease in hourly wages for the 8

employee, and 9

‘‘(bb) may provide for the 10

attainment of a recognized post-11

secondary credential (as defined 12

under the Workforce Innovation 13

and Opportunity Act), and 14

‘‘(iii) a program that has been ap-15

proved by the designated local agency as 16

under clause (ii) in which a third party 17

serves as employer of record for purposes 18

of operating an approved program with the 19

participating employer.’’. 20

(d) CREDIT FOR TAX-EXEMPT EMPLOYERS FOR EM-21

PLOYMENT OF QUALIFIED WORK-BASED LEARNING PAR-22

TICIPANTS.— 23

(1) IN GENERAL.—Paragraph (1) of section 24

3111(e) of such Code is amended by inserting ‘‘or 25

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5 

•HR 5869 IH

qualified work-based learning participant’’ after 1

‘‘qualified veteran’’ both places it appears. 2

(2) OVERALL LIMITATION.—Paragraph (2) of 3

section 3111(e) of such Code is amended by insert-4

ing ‘‘or qualified work-based learning participants’’ 5

after ‘‘qualified veterans’’. 6

(3) APPLICABLE PERIOD.—Paragraph (4) of 7

section 3111(e) of such Code is amended by insert-8

ing ‘‘or qualified work-based learning participant’’ 9

after ‘‘qualified veteran’’ both places it appears. 10

(4) DEFINITIONS.—Paragraph (5) of section 11

3111(e) of such Code is amended by striking ‘‘and’’ 12

at the end of subparagraph (A), by striking the pe-13

riod at the end of subparagraph (B) and inserting 14

‘‘, and’’, and by inserting after subparagraph (B) 15

the following: 16

‘‘(C) the term ‘qualified work-based learn-17

ing participant’ has the meaning given such 18

term by section 51(d)(16).’’. 19

(e) EFFECTIVE DATE.—The amendments made by 20

this section shall apply to wages paid after 90 days after 21

the date of the enactment of this Act, with respect to en-22

rollment in qualifying work-based learning programs be-23

ginning after such date. 24

Æ 

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	2020-02-19T05:21:11-0500
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	GPO attests that this document has not been altered since it was disseminated by GPO