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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•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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•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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•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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•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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