Sec. 6. Credit for small businesses with respect to lifelong learning account programs
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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: For purposes of section 38, in the case of an eligible employer, the lifelong learning accounts credit is the sum of— the lifelong learning account contributions credit, and the lifelong learning account administrative costs credit. For purposes of this section, the term lifelong learning account contributions credit means the amount equal to 25 percent of the aggregate amount paid or incurred by the taxpayer during the taxable year as contributions to lifelong learning accounts (within the meaning of section 36C(c)) of employees of the taxpayer.
The amount of the contributions taken into account under paragraph
(1)with respect to any employee for any taxable year shall not exceed $3,000. For purposes of this section, the term lifelong learning account administrative costs credit means the amount equal to 50 percent of the aggregate amount paid or incurred by the taxpayer during the taxable year as administrative expenses in carrying out a program to make payments to the lifelong learning accounts (within the meaning of section 36C(c)) of employees of the taxpayer. The amount of the credit determined under this subsection for any taxable year shall not exceed— $500 per eligible employer for the first credit year and each of the 2 taxable years immediately following the first credit year, and zero for any other taxable year. For purposes of this subsection, the term first credit year means the first taxable year for which the taxpayer claims a credit under this section. For purposes of this subsection, rules similar to the rules of paragraphs (1), (2), and
(3)of section 45E(e) shall apply. For purposes of this section, the term eligible employer has the meaning given such term by section 408(p)(2)(C)(I) applied— by substituting 250 employees for 100 employees in subclause
(I)thereof, for purposes of determining eligibility for the lifelong learning account contributions credit for any taxable year, without regard to subclause
(II)thereof, and for purposes of determining eligibility for the lifelong learning account administrative costs credit for any taxable year, by treating the plan described in subsection (c)(1) as the plan referred to in such subclause (II). If the Secretary, after consultation with the Secretary of Labor, determines that the taxpayer has required, coerced, or influenced an employee to establish a life long learning account or to use, or refrain from using, funds from the account for any eligible education or skill development expense (as defined in section 36C)— the tax imposed on the taxpayer under this subtitle for the taxable year which includes the date of such determination shall be increased by the amount of the credits allowed under this section to the taxpayer for all taxable years which include any portion of the period during which such requirement, coercion, or influence occurred, and no credit shall be allowed to the taxpayer under this section for the taxable year which includes the date of such determination and the succeeding taxable year. . Section 38(b) of the Internal Revenue Code of 1986 is amended by striking plus at the end of paragraph (35), by striking the period at the end of paragraph
(36)and inserting , plus , and by adding at the end the following new paragraph: the lifelong learning accounts credit determined under section 45S. . Section 196(c) of the Internal Revenue Code of 1986 is amended by striking and at the end of paragraph (13), by striking the period at the end of paragraph
(14)and inserting , and , and by adding at the end the following new paragraph: the lifelong learning accounts credit determined under section 45S. . 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. 45S. Lifelong learning accounts credit. . The amendments made by this section shall apply to taxable years beginning after December 31, 2013.