Investing in American Workers Act
Summary
What This Bill Does
This bill adds a new Internal Revenue Code section 45BB. Employers would receive a general business credit equal to 20 percent of qualified training expenditures above the average adjusted qualified training expenditures for the prior three taxable years. Qualified expenditures must be for training of non-highly compensated employees and do not include meals, lodging, transportation, or incidental services. Eligible training must lead to a recognized postsecondary credential and can include registered apprenticeships, eligible Workforce Innovation and Opportunity Act training services, and other defined credential pathways.
Who Benefits and How
Employers that increase credential-focused training benefit from a tax credit tied to incremental spending. Non-highly compensated workers benefit from more employer-funded access to apprenticeships, recognized postsecondary credentials, and workforce training that can improve advancement and earnings prospects. Training providers and apprenticeship programs may gain employer demand for eligible programs.
Who Bears the Burden and How
The Internal Revenue Service and Treasury must administer a new credit, define and police qualified expenditures, and verify baseline training spending against the prior three-year average. Federal taxpayers bear revenue loss from the credit, while employers claiming it must document eligible employees, credential outcomes, training providers, and excluded incidental costs.
Key Provisions
- Creates a 20 percent credit for qualified worker-training spending above a three-year baseline.
- Limits eligible training expenditures to non-highly compensated employees.
- Requires training to lead to a recognized postsecondary credential or qualifying program pathway.
- Excludes meals, lodging, transportation, and incidental services from qualified training expenditures.
- Requires IRS and Treasury administration of a new section 45BB business credit.
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.
At a Glance
What This Bill Does
Create a 20 percent incremental federal tax credit for employer-provided worker training that leads non-highly compensated employees to recognized postsecondary credentials.
Key Policy Areas
Tax, Labor, Workforce Development, Education
Primary Purpose
Create a 20 percent incremental federal tax credit for employer-provided worker training that leads non-highly compensated employees to recognized postsecondary credentials.
Policy Domains
Substantive provisions
Identified Gains
- Employers increasing worker training
- Non-highly compensated workers
- Apprenticeship programs
- Workforce training providers
- Community colleges
Identified Costs
- Internal Revenue Service
- Department of the Treasury
- Federal taxpayers
- Employers claiming the credit
Legislative Progress
In CommitteeMr. Krishnamoorthi introduced the following bill; which was referred to …
Referred to the Committee on Ways and Means, and in …
Introduced in House
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Employers claiming worker training credits, Employers increasing qualified worker training, Non-highly compensated workers receiving training
Apprenticeship programs receiving employer demand, Workforce training providers
Department of the Treasury guidance staff, Internal Revenue Service credit administrators
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "Claimants"
- → ['Employers']
- "Cost bearers"
- → ['Federal taxpayers']
- "Beneficiaries"
- → ['Employers', 'Workers', 'Apprenticeship programs', 'Training providers', 'Community colleges']
- "Administrators"
- → ['Internal Revenue Service', 'Department of the Treasury']
Key Definitions
Terms defined in this bill
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology