S2664-119

2. Establishment of qualifying workforce training project credit Subpart E of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 48E the following new section: For purposes of section 46, the qualifying workforce training project credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying workforce training project of an eligible taxpayer. For purposes of this section, the term eligible taxpayer means any taxpayer which is not a foreign entity of concern (as defined in section 9901(8) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651(8))). For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the eligible taxpayer during such taxable year which is part of a qualifying workforce training project. Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. The amount which is treated as the qualified investment for all taxable years with respect to any qualifying workforce training project shall not exceed the amount designated by the Secretary as eligible for the credit under this section. In this section— The term qualifying workforce training project means a project, any portion of the qualified investment of which is certified by the Secretary (in consultation with the Secretary of Commerce) under subsection (d) as eligible for a credit under this section, which equips, expands, or enhances an eligible institution to address workforce shortages and skills gaps with respect to in-demand jobs and industries (as identified by the Secretary), including— advanced, high-tech, semiconductor, and industrial manufacturing, advanced energy (such as hydrogen, nuclear, and solar), construction, and transportation, including aviation, aerospace, airports, and advanced air mobility. The term eligible property means any property— which is necessary for construction, renovation, or infrastructure upgrades with respect to the campus and facilities of an eligible institution which will, in the judgment of the Secretary, expand high-quality, in-demand, skills-based training, programming, and workforce opportunities, which is— tangible personal property, other tangible property (including a building and its structural components), but only if such property is used as an integral part of the eligible institution, or intangible property (as defined in section 367(d)(4)), including digital or virtual learning platforms and associated equipment, but only if such property is used as an integral part of any property described in clause (i) and the eligible institution, and with respect to which depreciation (or amortization in lieu of depreciation) is allowable. The term eligible institution means an entity that is (and was, as of the day before the date of enactment of this Act)— a public secondary school or a local educational agency, an area career and technical education school (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302))— that is a public school, and at which the most frequently awarded degree is not a bachelor's degree, a postsecondary vocational institution (as defined in section 102(c) of the Higher Education Act of 1965 (20 U.S.C. 1002(c)))— that is a public institution, and at which the most frequently awarded degree is not a bachelor's degree, a community college, a State-operated workforce development program, or a consortium of entities described in clauses (i) through (v). The term community college means— a public institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))), at which— the highest degree awarded is an associate degree, or an associate degree is the most frequently awarded degree, or a Tribal College or University (as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)))— that is a 2-year Tribal College or University, at which the highest degree awarded is an associate degree, or at which an associate degree is the most frequently awarded degree. The term public secondary school means a public secondary school, as defined in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801), that includes any of grades 9 through 12. Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Commerce, shall establish a qualifying workforce training project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying workforce training project sponsors. The total amount of credits that may be allocated under the program shall not exceed $500,000,000, of which not greater than $400,000,000 may be allocated to qualified investments with respect to any qualifying workforce training project which does not involve an eligible institution which is one or more of the following: A public secondary school that is eligible to receive assistance under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.). A rural public secondary school. A public secondary school funded by the Bureau of Indian Education. A local educational agency that will support a qualifying workforce training project involving a school described in clause (i) or (ii). Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 4-year period beginning on the date the Secretary establishes the program under paragraph (1). Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met. An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid. In determining which qualifying workforce training projects to certify under this section, the Secretary shall take into consideration which projects— satisfy current or expected State or regional workforce development requirements, build in-demand training program pipelines which maximize the skill level of, and expand opportunities for high-quality employment for, the State or regional workforce, demonstrate financial sustainability of the project in the geographic region in which it is located, and provide accommodations to individuals enrolled at the eligible institution to receive supportive services or propose to directly provide such services to individuals enrolled at the eligible institution. Rules similar to rules under paragraphs (4) and (5) of section 48C(d) shall apply for purposes of this section. In the case of any qualified investment for which a credit is allowed under this section— no deduction shall be allowed under section 170 with respect to such investment, and no credit shall be allowed under any other provision of this chapter with respect to such investment. Section 6417(b) of the Internal Revenue Code of 1986 is amended by adding at the end the following: The qualifying workforce training project credit under section 48F. Section 6418(f)(1)(A) of the Internal Revenue Code of 1986, as amended by section 70521 of Public Law 119–21, is amended by adding at the end the following: The qualifying workforce training project credit under section 48F. Section 46 of the Internal Revenue Code of 1986 is amended— in paragraph (6), by striking and at the end, in paragraph (7), by striking the period at the end and inserting , and, and by adding at the end the following: the qualifying workforce training project credit. Section 49(a)(1)(C) of such Code is amended— in clause (vii), by striking and at the end, in clause (viii), by striking the period at the end and inserting , and, and by adding at the end the following: the basis of any eligible property which is part of a qualifying workforce training project credit under section 48F. Section 50(a)(2)(E) of such Code is amended by striking or 48E(e) and inserting 48E(e), or 48F(b)(2). The table of sections for subpart E of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 48E the following new item: There are authorized to be appropriated, out of moneys in the Treasury not otherwise appropriated, such sums as may be necessary for the Department of the Treasury and the Department of Commerce to administer section 48F of the Internal Revenue Code of 1986 (as added by this Act). The amendments made by this section shall apply to property placed in service during any taxable year beginning after the date of enactment of this Act. 48F. Qualifying workforce training project credit (a) Establishment of credit (1) In general For purposes of section 46, the qualifying workforce training project credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying workforce training project of an eligible taxpayer. (2) Eligible taxpayer For purposes of this section, the term eligible taxpayer means any taxpayer which is not a foreign entity of concern (as defined in section 9901(8) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651(8))). (b) Qualified investment (1) In general For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the eligible taxpayer during such taxable year which is part of a qualifying workforce training project. (2) Certain qualified progress expenditure rules made applicable Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. (3) Limitation The amount which is treated as the qualified investment for all taxable years with respect to any qualifying workforce training project shall not exceed the amount designated by the Secretary as eligible for the credit under this section. (c) Definitions In this section— (1) Qualifying workforce training project The term qualifying workforce training project means a project, any portion of the qualified investment of which is certified by the Secretary (in consultation with the Secretary of Commerce) under subsection (d) as eligible for a credit under this section, which equips, expands, or enhances an eligible institution to address workforce shortages and skills gaps with respect to in-demand jobs and industries (as identified by the Secretary), including— (A) advanced, high-tech, semiconductor, and industrial manufacturing, (B) advanced energy (such as hydrogen, nuclear, and solar), (C) construction, and (D) transportation, including aviation, aerospace, airports, and advanced air mobility. (2) Eligible property The term eligible property means any property— (A) which is necessary for construction, renovation, or infrastructure upgrades with respect to the campus and facilities of an eligible institution which will, in the judgment of the Secretary, expand high-quality, in-demand, skills-based training, programming, and workforce opportunities, (B) which is— (i) tangible personal property, (ii) other tangible property (including a building and its structural components), but only if such property is used as an integral part of the eligible institution, or (iii) intangible property (as defined in section 367(d)(4)), including digital or virtual learning platforms and associated equipment, but only if such property is used as an integral part of any property described in clause (i) and the eligible institution, and (C) with respect to which depreciation (or amortization in lieu of depreciation) is allowable. (3) Eligible institution (A) In general The term eligible institution means an entity that is (and was, as of the day before the date of enactment of this Act)— (i) a public secondary school or a local educational agency, (ii) an area career and technical education school (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302))— (I) that is a public school, and (II) at which the most frequently awarded degree is not a bachelor's degree, (iii) a postsecondary vocational institution (as defined in section 102(c) of the Higher Education Act of 1965 (20 U.S.C. 1002(c)))— (I) that is a public institution, and (II) at which the most frequently awarded degree is not a bachelor's degree, (iv) a community college, (v) a State-operated workforce development program, or (vi) a consortium of entities described in clauses (i) through (v). (B) Community college The term community college means— (i) a public institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))), at which— (I) the highest degree awarded is an associate degree, or (II) an associate degree is the most frequently awarded degree, or (ii) a Tribal College or University (as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)))— (I) that is a 2-year Tribal College or University, (II) at which the highest degree awarded is an associate degree, or (III) at which an associate degree is the most frequently awarded degree. (4) Public secondary school The term public secondary school means a public secondary school, as defined in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801), that includes any of grades 9 through 12. (d) Qualifying workforce training project program (1) Establishment (A) In general Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Commerce, shall establish a qualifying workforce training project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying workforce training project sponsors. (B) Limitation The total amount of credits that may be allocated under the program shall not exceed $500,000,000, of which not greater than $400,000,000 may be allocated to qualified investments with respect to any qualifying workforce training project which does not involve an eligible institution which is one or more of the following: (i) A public secondary school that is eligible to receive assistance under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.). (ii) A rural public secondary school. (iii) A public secondary school funded by the Bureau of Indian Education. (iv) A local educational agency that will support a qualifying workforce training project involving a school described in clause (i) or (ii). (2) Certification (A) Application period Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 4-year period beginning on the date the Secretary establishes the program under paragraph (1). (B) Time to meet criteria for certification Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met. (C) Period of issuance An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid. (3) Selection criteria In determining which qualifying workforce training projects to certify under this section, the Secretary shall take into consideration which projects— (A) satisfy current or expected State or regional workforce development requirements, (B) build in-demand training program pipelines which maximize the skill level of, and expand opportunities for high-quality employment for, the State or regional workforce, (C) demonstrate financial sustainability of the project in the geographic region in which it is located, and (D) provide accommodations to individuals enrolled at the eligible institution to receive supportive services or propose to directly provide such services to individuals enrolled at the eligible institution. (4) Review and redistribution; disclosure of allocations Rules similar to rules under paragraphs (4) and (5) of section 48C(d) shall apply for purposes of this section. (e) Denial of double benefit In the case of any qualified investment for which a credit is allowed under this section— (1) no deduction shall be allowed under section 170 with respect to such investment, and (2) no credit shall be allowed under any other provision of this chapter with respect to such investment. . (13) The qualifying workforce training project credit under section 48F. . (xiii) The qualifying workforce training project credit under section 48F. . (8) the qualifying workforce training project credit. . (ix) the basis of any eligible property which is part of a qualifying workforce training project credit under section 48F. . Sec. 48F. Qualifying workforce training project credit. .

48F. Qualifying workforce training project credit For purposes of section 46, the qualifying workforce training project credit for any taxable year is an amount equal to 30 percent of the qualified investment for such taxable year with respect to any qualifying workforce training project of an eligible taxpayer. For purposes of this section, the term eligible taxpayer means any taxpayer which is not a foreign entity of concern (as defined in section 9901(8) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (15 U.S.C. 4651(8))). For purposes of subsection (a), the qualified investment for any taxable year is the basis of eligible property placed in service by the eligible taxpayer during such taxable year which is part of a qualifying workforce training project. Rules similar to the rules of subsections (c)(4) and (d) of section 46 (as in effect on the day before the enactment of the Revenue Reconciliation Act of 1990) shall apply for purposes of this section. The amount which is treated as the qualified investment for all taxable years with respect to any qualifying workforce training project shall not exceed the amount designated by the Secretary as eligible for the credit under this section. In this section— The term qualifying workforce training project means a project, any portion of the qualified investment of which is certified by the Secretary (in consultation with the Secretary of Commerce) under subsection (d) as eligible for a credit under this section, which equips, expands, or enhances an eligible institution to address workforce shortages and skills gaps with respect to in-demand jobs and industries (as identified by the Secretary), including— advanced, high-tech, semiconductor, and industrial manufacturing, advanced energy (such as hydrogen, nuclear, and solar), construction, and transportation, including aviation, aerospace, airports, and advanced air mobility. The term eligible property means any property— which is necessary for construction, renovation, or infrastructure upgrades with respect to the campus and facilities of an eligible institution which will, in the judgment of the Secretary, expand high-quality, in-demand, skills-based training, programming, and workforce opportunities, which is— tangible personal property, other tangible property (including a building and its structural components), but only if such property is used as an integral part of the eligible institution, or intangible property (as defined in section 367(d)(4)), including digital or virtual learning platforms and associated equipment, but only if such property is used as an integral part of any property described in clause (i) and the eligible institution, and with respect to which depreciation (or amortization in lieu of depreciation) is allowable. The term eligible institution means an entity that is (and was, as of the day before the date of enactment of this Act)— a public secondary school or a local educational agency, an area career and technical education school (as defined in section 3 of the Carl D. Perkins Career and Technical Education Act of 2006 (20 U.S.C. 2302))— that is a public school, and at which the most frequently awarded degree is not a bachelor's degree, a postsecondary vocational institution (as defined in section 102(c) of the Higher Education Act of 1965 (20 U.S.C. 1002(c)))— that is a public institution, and at which the most frequently awarded degree is not a bachelor's degree, a community college, a State-operated workforce development program, or a consortium of entities described in clauses (i) through (v). The term community college means— a public institution of higher education (as defined in section 101(a) of the Higher Education Act of 1965 (20 U.S.C. 1001(a))), at which— the highest degree awarded is an associate degree, or an associate degree is the most frequently awarded degree, or a Tribal College or University (as defined in section 316(b) of the Higher Education Act of 1965 (20 U.S.C. 1059c(b)))— that is a 2-year Tribal College or University, at which the highest degree awarded is an associate degree, or at which an associate degree is the most frequently awarded degree. The term public secondary school means a public secondary school, as defined in section 8101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801), that includes any of grades 9 through 12. Not later than 180 days after the date of enactment of this section, the Secretary, in consultation with the Secretary of Commerce, shall establish a qualifying workforce training project program to consider and award certifications for qualified investments eligible for credits under this section to qualifying workforce training project sponsors. The total amount of credits that may be allocated under the program shall not exceed $500,000,000, of which not greater than $400,000,000 may be allocated to qualified investments with respect to any qualifying workforce training project which does not involve an eligible institution which is one or more of the following: A public secondary school that is eligible to receive assistance under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.). A rural public secondary school. A public secondary school funded by the Bureau of Indian Education. A local educational agency that will support a qualifying workforce training project involving a school described in clause (i) or (ii). Each applicant for certification under this paragraph shall submit an application containing such information as the Secretary may require during the 4-year period beginning on the date the Secretary establishes the program under paragraph (1). Each applicant for certification shall have 1 year from the date of acceptance by the Secretary of the application during which to provide to the Secretary evidence that the requirements of the certification have been met. An applicant which receives a certification shall have 3 years from the date of issuance of the certification in order to place the project in service and if such project is not placed in service by that time period, then the certification shall no longer be valid. In determining which qualifying workforce training projects to certify under this section, the Secretary shall take into consideration which projects— satisfy current or expected State or regional workforce development requirements, build in-demand training program pipelines which maximize the skill level of, and expand opportunities for high-quality employment for, the State or regional workforce, demonstrate financial sustainability of the project in the geographic region in which it is located, and provide accommodations to individuals enrolled at the eligible institution to receive supportive services or propose to directly provide such services to individuals enrolled at the eligible institution. Rules similar to rules under paragraphs (4) and (5) of section 48C(d) shall apply for purposes of this section. In the case of any qualified investment for which a credit is allowed under this section— no deduction shall be allowed under section 170 with respect to such investment, and no credit shall be allowed under any other provision of this chapter with respect to such investment.