HR2447-119

What This Bill Does

The New Collar Jobs Act builds cybersecurity workforce incentives around industrial and economically distressed communities. It creates a new section 45BB employee cybersecurity education credit equal to 50 percent of qualified employer-paid expenses, capped at $5,000 per employee, for employees earning undergraduate or graduate credentials or industry-recognized certifications tied to NICE Cybersecurity Workforce Framework roles. It creates Direct Loan cancellation of up to $25,000 for borrowers in cybersecurity jobs, including cybersecurity course instructors, who make 36 consecutive monthly payments and work in an economically distressed area for at least 12 of those months and at least 60 percent of total work hours. It states congressional support for doubling NSF CyberCorps scholarships compared with fiscal year 2024, allows CyberCorps work to include teaching cybersecurity courses, expresses support for at least 110 percent of fiscal year 2024 funding for NSF Advanced Technological Education IT and cybersecurity work in fiscal year 2026, and requires executive agencies to give qualified offerors a 5 percent score increase on competitive proposals for contracts over $5 million if the business claimed the cybersecurity education credit at least once in the previous three years.

Who Benefits and How

Employers training cybersecurity workers benefit from a 50 percent tax credit for qualified education expenses up to $5,000 per employee. Cybersecurity workers in economically distressed areas benefit from up to $25,000 of Direct Loan cancellation after 36 qualifying payments. Cybersecurity course instructors benefit because teaching NICE framework roles can count for loan cancellation and CyberCorps service. NSF CyberCorps applicants benefit from congressional support for doubling scholarship awards. Community college cybersecurity programs benefit from support for increased Advanced Technological Education IT and cybersecurity funding. Federal contractors investing in cybersecurity training benefit from a 5 percent proposal score increase on contracts over $5 million.

Who Bears the Burden and How

IRS business credit staff must implement section 45BB, coordinate deduction rules, and verify qualified employee cybersecurity education expenses. Education Department loan servicing staff must administer 36-payment, distressed-area, work-hour, and $25,000 cancellation rules. Executive agency contracting officers must apply a 5 percent score increase to qualified offerors on covered procurements. Federal taxpayers bear the cost of tax credits, loan cancellation, and potentially expanded scholarship and education spending. Businesses that do not claim the credit may be disadvantaged in federal procurements against qualified offerors.

Key Provisions

• Creates a 50 percent employee cybersecurity education tax credit capped at $5,000 per employee.
• Defines qualified education by certificates, degrees, or industry certifications tied to NICE Cybersecurity Workforce Framework roles.
• Authorizes up to $25,000 of Direct Loan cancellation for cybersecurity workers in economically distressed areas after 36 qualifying payments.
• Expands CyberCorps service to include teaching cybersecurity courses and supports doubling scholarships.
• Supports Advanced Technological Education cybersecurity funding at not less than 110 percent of fiscal year 2024 levels.
• Requires a 5 percent evaluation score increase for qualified offerors on executive agency contracts over $5 million.