Sec. 2. Establishment of Skills Training Credit
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Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36 the following new section: In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of— the amount of expenses paid or incurred by such individual during such taxable year for qualified training services which are provided by a qualified entity, or an amount equal to— $4,000, minus an amount equal to the sum of any credits allowed to the taxpayer under this section for any preceding taxable year.
For purposes of this section— The term eligible individual means an individual who— became unemployed or furloughed during calendar year 2020 but was otherwise able to work and available for work within the meaning of applicable State law (as defined in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 ( 26 U.S.C. 3304 note)), during the period in which any qualified training service is provided to such individual by a qualified entity— is not employed and has applied for or is receiving compensation (as defined in section 3306(h)), including pandemic emergency unemployment compensation under section 2107 of subtitle A of title II of division A of the CARES Act, and informs such entity of their intent to claim the credit allowed under subsection
(a)with respect to such service. For purposes of subparagraph (A), the term eligible individual shall not include an individual whose employer has reduced their hours of work and who receives compensation pursuant to a short-time compensation program (as defined in section 3306(v)). The term qualified entity means an entity that is— a provider included on a State list described in section 122(d) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152(d) ); or a provider of qualified training services that has been precertified by the Secretary of Labor under section 3 of the Skills Renewal Act . The term qualified training service means a course or program of study that— is included on a list described in section 122(d) of the Workforce Innovation and Opportunity Act ( 29 U.S.C. 3152(d) ) for a State, or is a course or program of study relating to computer science, technology, or another high-need area, such as a coding boot camp, that has been precertified by the Secretary of Labor under section 3 of the Skills Renewal Act . For purposes of subsection (a)(1), the amount of expenses paid or incurred by an eligible individual during such taxable year for qualified training services shall be reduced— as provided in section 25A(g)(2), and by the amount of such expenses which were taken into account in determining the credit allowed to the taxpayer or any other person under section 25A. The Secretary shall prescribe such regulations as may be necessary to carry out the provisions of this section. This section shall not apply to expenses paid or incurred during taxable years beginning after December 31, 2021. . Subpart B of part III of subchapter A of chapter 61 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: Any qualified entity which, in the course of a trade or business and for any calendar year, receives payments from any electing individual with respect to qualified training services provided by such entity shall make the return described in subsection
(b)with respect to each such individual at such time as the Secretary may by regulations prescribe. A return is described in this subsection if such return— is in such form as the Secretary may prescribe, and contains— the name, address, and TIN of each electing individual from whom a payment described in subsection
(a)was received during the calendar year, the aggregate amount of such payments received by such individual during such calendar year and the date and amount of each such payment, and such other information as the Secretary may require. The term electing individual means an individual who has indicated to the qualified entity their intention to claim the credit allowed under section 36A with respect to the qualified training services provided by such entity. Every qualified entity required to make a return under subsection
(a)shall furnish to each electing individual whose name is required to be set forth in such return a written statement showing— the name, address, and phone number of the information contact of the qualified entity required to make such a return, and the aggregate amount of payments made by the individual to the qualified entity required to be shown on the return. The written statement required under paragraph
(1)shall be furnished to the individual on or before January 31 of the year following the calendar year for which the return under subsection
(a)is required to be made. The terms qualified entity and qualified training services have the same meaning given such terms under section 36A(b). The Secretary may prescribe such regulations and other guidance as may be appropriate or necessary to carry out the purpose of this section. . Section 6211(b)(4)(A) of the Internal Revenue Code of 1986 is amended by inserting 36A, after 36, . 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 36 the following new item: Sec. 36A. Skills Training Credit. . The table of sections for subchapter A of chapter 61 of such Code is amended by adding at the end the following new item: Sec. 6050Z. Returns relating to qualified training services. . The amendments made by this section shall apply to expenses paid or incurred during taxable years beginning after December 31, 2019.
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