Sec. 617. Credits for employer-provided adult English literacy and basic education 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: For the purposes of section 38, the credit determined under this section with respect to any employer for the taxable year is an amount equal to 20 percent of qualified education program expenses, but in no case shall the employer receive a credit in an amount of more than $1,000 per full-time employee participating in the qualified education program.
For purposes of this section— The term qualified education program expenses means expenses paid or incurred by an employer to make available qualified education to employees of the employer, who— are English language learners; and have not received a secondary school diploma, or its recognized equivalent; or lack sufficient mastery of basic educational skills, including financial literacy, to enable the individuals to function effectively in society. The term qualified education means adult education and literacy activities provided— by an eligible provider which for the fiscal year ending during the employer’s taxable year receives or is eligible to receive Federal funds under section 231 of the Adult Education and Family Literacy Act for adult education and literacy activities; or in curriculum approved by the Department of Education, the Employment and Training Administration of the Department of Labor, or in current use by a Federal agency.
The terms eligible provider and adult education and literacy activities shall have the respective meanings given to such terms in section 203 of the Adult Education and Family Literacy Act. The term English language learner shall have the same meaning given to such term in section 9101(25) of the Elementary and Secondary Education Act of 1965. For purposes of this section— An employee shall be considered full-time if such employee is employed at least 30 hours per week for 25 or more calendar weeks in the taxable year.
All persons treated as a single employer under subsection
(a)or
(b)or section 52, or subsection
(m)or
(o)of section 414, shall be treated as 1 person. No deduction or credit shall be allowed under any other provision of this chapter for any amount taken into account in determining the credit under this section. This section shall not apply to expenses paid or incurred after December 31, 2018. . Subsection
(b)of section 38 of such Code (relating to the current year business credit) is amended— by striking plus at the end of paragraph (34); by striking the period at the end of paragraph
(35)and inserting , plus ; and by adding at the end the following new paragraph: the adult English literacy and basic education programs credit determined under section 45R. . The table of sections for subpart D of part IV of subchapter A of chapter 1 of the such Code is amended by adding at the end the following new item: Sec. 45R. Employer-provided adult English literacy and basic education programs. . Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall promulgate regulations implementing the provisions of this section. The amendments made by this section shall apply to taxable years beginning after December 31, 2013.