Workforce Investment and Job Creation Act - Directs the Secretary of Labor to develop a strategy report to address the skills gap by providing analysis and recommendations to increase on-the-job training and apprenticeship opportunities, identify industry-recognized postsecondary credentials that are nationally portable and aligned with in-demand occupations in industries such as construction, manufacturing, and others that are emerging, and increase employer participation in education and workforce training.
Defines the term "skills gap" as the difference, or gap, between the current supply of labor and skills of the workforce and that which is desired by employers.
Amends the Workforce Investment Act of 1998 to require the Secretary of Labor to award competitive grants to states to provide funds to local boards for provision of technical school training subsidies in local areas through one-stop delivery systems to pay tuition costs for the career and technical education of unemployed individuals enrolled or accepted at a technical school. Limits the aggregate amount of subsidies to an individual to $2,000.
Amends the Internal Revenue Code to allow employers a refundable tax credit for: (1) 60% of the excess of the aggregate wages paid to their employees in 2014 over the aggregate wages paid them in 2013, and (2) 40% of the excess of such wages paid during 2015 over the aggregate inflation-adjusted wages paid during 2014. Limits the maximum amount of such credit to $500,000 in any calendar year.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4591 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 4591
To establish a national strategy for identifying job training needs to
increase opportunities for technical school training and promote
hiring.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 7, 2014
Mr. Barrow of Georgia introduced the following bill; which was referred
to the Committee on Education and the Workforce, and in addition to the
Committee on Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To establish a national strategy for identifying job training needs to
increase opportunities for technical school training and promote
hiring.
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 ``Workforce Investment and Job
Creation Act''.
SEC. 2. IDENTIFYING JOB TRAINING NEEDS.
(a) Strategy Report.--
(1) Strategy report required.--The Secretary of Labor shall
develop and submit to Congress a strategy report to address the
skills gap by providing analysis and recommendations to
increase on-the-job training and apprenticeship opportunities
and increase employer participation in education and workforce
training.
(2) Goals of the strategy report.--The strategy report
required by paragraph (1) shall include specific
recommendations to achieve the following goals:
(A) To increase the aggregate number of employers
and employees participating in on-the-job training and
apprenticeships.
(B) To determine ways in which the Department of
Labor can increase employer outreach to encourage new
and expanded employer participation in education and
workforce training.
(C) To identify and prioritize industry-recognized
postsecondary credentials that are nationally portable
and aligned with in-demand occupations in industries
such as construction, manufacturing, and others that
are emerging.
(D) To determine ways in which the Department of
Labor can better address the skills gap by maximizing
existing resources, programs, and personnel.
(3) Analysis required.--As part of the strategy report
under paragraph (1), the Secretary shall, at a minimum, include
the following:
(A) A comparison of United States on-the-job
training and apprenticeship policies and strategies
with the policies and strategies of other countries
where employers play a larger role in education and
workforce training.
(B) An assessment of the Department of Labor's
Registered Apprenticeship program to determine how it
can be better utilized to appeal to more industries and
to boost the goals described in paragraph (2).
(C) An evaluation of any existing or potential
opportunities within the Department of Labor to refocus
or repurpose resources and personnel to better support
on-the-job training and apprenticeship goals.
(D) An analysis of the specific barriers preventing
the domestic workforce from acquiring the skills
desired by domestic employers, including an assessment
of opportunities to reduce those barriers by--
(i) improving coordination between Federal
agencies that administer employment and
training programs; and
(ii) modifying Federal employment and
training programs to enable States to better
utilize Federal employment and training funds.
(4) Recommendations.--The Secretary shall include in the
skills gap strategy report required under paragraph (1)
recommendations for achieving the goals included in the
strategy pursuant to paragraph (2). Such recommendations may
include proposals as follows:
(A) Actions that may be taken by the Federal
Government, Congress, State, local and territorial
governments, the private sector, universities, industry
associations, and other stakeholders to improve
policies, coordination, and interaction between such
entities, including strategies and best practices to--
(i) boost public-private partnerships and
employer-led partnerships; and
(ii) help establish regional industry
partnerships.
(B) Adoption of strategies that have been
implemented and proven successful in key industries and
regions in the United States and in other countries.
(C) In coordination with the Secretary of Commerce
and the Secretary of Education, develop plans that
identify strategies--
(i) for increased employer participation in
career and technical education;
(ii) to better align career and technical
education curriculums and programs with fast
growing industry sectors;
(iii) to encourage more pre-apprenticeship
and college credit courses in secondary
schools;
(iv) to improve school-to-work transitions
and connections; and
(v) to assist employers in partnering with
elementary schools, secondary schools, and
institutions of higher education.
(5) Submittal of strategy report.--Not later than 1 year
after the date of the enactment of this Act, the Secretary
shall submit to Congress the strategy report developed under
this subsection.
(6) Implementation.--The Secretary may implement the
recommendations under paragraph (4) as the Secretary determines
appropriate, if otherwise permitted under law.
(b) Definitions.--In this section:
(1) ESEA terms.--The terms ``elementary school'' and
``secondary school'' have the meanings given such terms in
section 9101 of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 7801).
(2) Industry-recognized.--The term ``industry-recognized'',
as used with respect to a credential, means a credential that--
(A) is sought or accepted by employers within the
industry sector involved as recognized, preferred, or
required for recruitment, screening, hiring, or
advancement;
(B) is endorsed by a recognized trade or
professional association or organization, representing
a significant part of the industry sector; and
(C) is a nationally portable credential that is
sought or accepted across multiple States, as described
in subparagraph (A).
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(4) Recognized postsecondary credential.--The term
``recognized postsecondary credential'' means a credential
consisting of an industry-recognized credential for
postsecondary training, a certificate that meets the
requirements of subparagraphs (A) and (C) of paragraph (1) for
postsecondary training, a certificate of completion of a
postsecondary apprenticeship through a program described in
section 122(a)(2)(B) of the Workforce Investment Act of 1998
(29 U.S.C. 2842(a)(2)(B)), or an associate degree or
baccalaureate degree awarded by an institution of higher
education (as defined in section 101(a) of the Higher Education
Act of 1965 (20 U.S.C. 1001(a))).
(5) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(6) Skills gap.--The term ``skills gap'' refers to the
difference, or gap, between the current supply of labor and
skills of the workforce and that which is desired by employers.
SEC. 3. TECHNICAL SCHOOL TRAINING SUBSIDY PROGRAM.
Section 171 of the Workforce Investment Act of 1998 (29 U.S.C.
2916) is amended by adding at the end the following:
``(f) Technical School Training Subsidy Pilot Program.--
``(1) Establishment of technical school training subsidy
pilot program.--From the amounts appropriated to carry out this
subsection, the Secretary shall award competitive grants to
States to provide such funds to local boards for the provision
of technical school training subsidies in local areas through
one-stop delivery systems described in section 134(c).
``(2) Application.--To receive a grant under this
subsection a State shall submit to the Secretary an application
in such manner, at such time, and containing such information
as the Secretary may require.
``(3) Qualifications and requirements for subsidy.--
``(A) In general.--A technical school training
subsidy for an academic year may be provided, in
accordance with subparagraph (E), to a technical school
on behalf of an unemployed individual who is enrolled,
or accepted for enrollment, at a technical school.
``(B) Amount of subsidy.--
``(i) Considerations.--In determining the
amount of a subsidy to provide to an unemployed
individual under this subsection, a one-stop
operator or one-stop partner, as appropriate,
shall take into account--
``(I) the cost of tuition of such
individual;
``(II) the expected family
contribution, as determined in
accordance with section 474 of the
Higher Education Act of 1965 (20 U.S.C.
1087nn), for such individual; and
``(III) the estimated financial
assistance for such individual not
received under this subsection.
``(ii) Aggregate amount.--The aggregate
amount of subsidies an individual may receive
under this subsection may not exceed $2,000.
``(C) Number of subsidies.--An individual may
receive subsidies under this subsection for not more
than 2 academic years.
``(D) Use of funds.--A subsidy an individual
receives under this subsection shall be used to assist
the individual in paying the cost of tuition for career
and technical education at a technical school. All
subsidies received by an individual under this
subsection shall be used to pay the cost of tuition for
career and technical education at the same technical
school.
``(E) Provision of subsidy.--Upon approving an
unemployed individual for a subsidy under this
subsection, a one-stop operator or one-stop partner, as
appropriate, shall provide, prior to the start of an
academic year, the subsidy to the technical school in
which the unemployed individual is enrolled or accepted
for enrollment.
``(4) Definitions.--In this subsection--
``(A) The term `career and technical education' has
the meaning given the term in section 3 of the Carl D.
Perkins Career and Technical Education Act of 2006 (20
U.S.C. 2302).
``(B) The term `cost of tuition' means--
``(i) tuition and fees normally assessed a
student carrying the same academic workload as
determined by the technical school, and
including costs for rental or purchase of any
equipment, materials, or supplies required of
all students in the same course of study; and
``(ii) an allowance for books and supplies,
for a student attending the technical school on
at least a half-time basis, as determined by
the school.
``(C) The term `technical school' means a
`postsecondary vocational institution' that provides
career and technical education.
``(D) The term `postsecondary vocational
institution' has the meaning given the term in section
102(c) of the Higher Education Act of 1965 (20 U.S.C.
1002(c)).
``(E) The term `unemployed individual' means an
unemployed individual who is a citizen of the United
States.''.
SEC. 4. TAX CREDITS FOR NEW HIRES.
(a) Credit for Increasing Employment.--Subpart C of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
(relating to refundable credits) is amended by inserting after section
36B the following new section:
``SEC. 36C. CREDIT FOR INCREASING EMPLOYMENT.
``(a) In General.--There shall be allowed as a credit against the
tax imposed by this subtitle--
``(1) for any taxable year beginning in 2014, an amount
equal to 60 percent of the excess of--
``(A) the aggregate wages paid during 2014, over
``(B) the aggregate wages paid during 2013, and
``(2) for any taxable year beginning in 2015, an amount
equal to 40 percent of the excess of--
``(A) the aggregate wages paid during 2015, over
``(B) the aggregate inflation-adjusted wages paid
during 2014.
``(b) Maximum Credit.--The amount of the credit allowable under
this section for any employer with respect to any calendar year shall
not exceed $500,000.
``(c) Minimum Preceding Year Wages.--For purposes of subsection
(a)--
``(1) the amount taken into account under paragraph (1)(B)
thereof shall not be less than 50 percent of the amount
described in paragraph (1)(A) thereof, and
``(2) the amount taken into account under paragraph (2)(B)
thereof shall not be less than 50 percent of the amount
described in paragraph (2)(A) thereof.
``(d) Total Wages Must Increase.--The amount of credit allowed
under this section for any taxable year shall not exceed the amount
which would be so allowed for such year (without regard to subsection
(c)) if--
``(1) the aggregate amounts taken into account as wages
were determined without any dollar limitation, and
``(2) 103 percent of the amount of wages otherwise required
to be taken into account under subsection (a)(1)(B) or
subsection (a)(2)(B), as the case may be, were taken into
account.
``(e) Wages; Inflation-Adjusted Wages.--For purposes of this
section:
``(1) In general.--Except as provided in paragraph (2), the
term `wages' has the meaning given to such term by section
3306(b).
``(2) Railway and agricultural labor.--Rules similar to the
rules of section 51(h) shall apply for purposes of this
section.
``(3) Inflation-adjusted wages.--The term `inflation-
adjusted wages' means the aggregate wages paid during 2014
increased by an amount equal to--
``(A) such aggregate wages, multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for 2014, determined by
substituting `calendar year 2012' for `calendar year
1992' in subparagraph (B) thereof.
Any increase determined under the preceding sentence shall be
rounded in such manner as the Secretary shall prescribe.
``(f) Special Rules.--
``(1) Adjustments for certain acquisitions, etc.--
``(A) Acquisitions.--If, after December 31, 2012,
an employer acquires the major portion of a trade or
business of another person (hereinafter in this
subparagraph referred to as the `predecessor') or the
major portion of a separate unit of a trade or business
of a predecessor, then, for purposes of applying this
section for any calendar year ending after such
acquisition, the amount of wages deemed paid by the
employer during periods before such acquisition shall
be increased by so much of such wages paid by the
predecessor with respect to the acquired trade or
business as is attributable to the portion of such
trade or business acquired by the employer.
``(B) Dispositions.--If, after December 31, 2012--
``(i) an employer disposes of the major
portion of any trade or business of the
employer or the major portion of a separate
unit of a trade or business of the employer in
a transaction to which subparagraph (A)
applies, and
``(ii) the employer furnishes the acquiring
person such information as is necessary for the
application of subparagraph (A),
then, for purposes of applying this section for any
calendar year ending after such disposition, the amount
of wages deemed paid by the employer during periods
before such disposition shall be decreased by so much
of such wages as is attributable to such trade or
business or separate unit.
``(2) Change in status from self-employed to employee.--
If--
``(A) during 2013 or 2014 an individual has net
earnings from self-employment (as defined in section
1402(a)) which are attributable to a trade or business,
and
``(B) for any portion of the succeeding calendar
year such individual is an employee of such trade or
business,
then, for purposes of determining the credit allowable for a
taxable year beginning in such succeeding calendar year, the
employer's aggregate wages for 2013 or 2014, as the case may
be, shall be increased by an amount equal to so much of the net
earnings referred to in subparagraph (A) as does not exceed the
median household income in the United States for 2013 or 2014,
as the case may be.
``(3) Certain other rules to apply.--Rules similar to the
following rules shall apply for purposes of this section:
``(A) Section 51(f) (relating to remuneration must
be for trade or business employment).
``(B) Section 51(i)(1) (relating to related
individuals ineligible).
``(C) Section 51(k) (relating to treatment of
successor employers; treatment of employees performing
services for other persons).
``(D) Section 52 (relating to special rules).
``(4) Short taxable years.--If the employer has more than 1
taxable year beginning in 2014 or 2015, the credit under this
section shall be determined for the employer's last taxable
year beginning in 2014 or 2015, as the case may be.''.
(b) Denial of Double Benefit.--Subsection (a) of section 280C of
such Code is amended by inserting ``36C(a),'' before ``45A(a)''.
(c) Conforming Amendments.--
(1) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``36C,'' after ``36B,''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 36B the following new item:
``Sec. 36C. Credit for increasing employment.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2013.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Education and the Workforce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Higher Education and Workforce Training.
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