S AMDT 1045

S 1045 IS

To amend the Internal Revenue Code of 1986 to allow employers a credit against income tax for the costs of providing technical training for employees.

May 14, 2009

Mrs. LINCOLN introduced the following bill; which was read twice and referred to the Committee on Finance

To amend the Internal Revenue Code of 1986 to allow employers a credit against income tax for the costs of providing technical training for employees.

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 ‘Providing Our Workforce with Education and Re-training Act of 2009’ or ‘POWER Act of 2009’.

SEC. 2. CREDIT TO EMPLOYERS FOR COST OF TECHNICAL TRAINING FOR EMPLOYEES.

(a) In General- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section:

‘SEC. 45R. EXPENSES FOR TECHNICAL TRAINING OF EMPLOYEES.

‘(a) General Rule- For purposes of section 38, the employee technical training credit determined under this section for the taxable year is an amount equal to 25 percent of the amount paid or incurred by the taxpayer for technical training for employees performing services in a trade or business of the taxpayer.

‘(b) Limitations-

‘(1) PER EMPLOYEE LIMIT- The credit determined under this section with respect to each employee for the taxable year shall not exceed $1,000, reduced by the credit determined under this section with respect to such employee for all prior taxable years.

‘(2) TRAINING MUST LEAD TO RECOGNIZED CERTIFICATE- Only costs for training leading to an industry-recognized license or certificate may be taken into account under this section.

‘(c) Allocation in the Case of Partnerships, etc- In the case of partnerships, the credit shall be allocated among partners under regulations prescribed by the Secretary. A similar rule shall apply in the case of an S corporation and its shareholders.

‘(d) Certain Rules To Apply- Rules similar to the rules of sections 51(i)(1) and 52 shall apply for purposes of this section.’.

(b) Credit Made Part of General Business Credit- Subsection (b) of section 38 of the Internal Revenue Code of 1986 is amended by striking ‘plus’ at the end of paragraph (34), by striking the period at the end of paragraph (35) and inserting ‘, plus’, and by adding at the end the following new paragraph:

‘(36) the employee technical training credit determined under section 45R(a).’.

(c) Denial of Double Benefit- Section 280C of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection:

‘(g) Employee Technical Training Credit- No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for the taxable year under section 45R(a).’.

(d) Clerical Amendment- The table of sections for subpart D 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 new item:

‘Sec. 45R. Expenses for technical training of employees.’.

(e) Effective Date- The amendments made by this section shall apply to expenses paid or incurred in the taxable years ending after the date of the enactment of this Act.