1. Short title
This Act may be cited as the “Skill and Knowledge Investments Leverage Leaders’ Untapped Potential Tax Credit Act of 2020” or the “SKILL UP Act of 2020”.
Skill and Knowledge Investments Leverage Leaders’ Untapped Potential Tax Credit Act of 2020
A BILL
To amend the Internal Revenue Code to provide business with a tax credit for investing in work-based learning for workers with low skill levels.
2. Work opportunity tax credit for participation in qualifying work-based learning programs
In general— Paragraph (1) of section 51(d) of the Internal Revenue Code of 1986 is amended by striking “or” at the end of subparagraph (I), by striking the period at the end of subparagraph (J) and inserting “, or”, and by inserting after subparagraph (J) the following:
“(K) a qualified work-based learning participant.”
Wages per year taken into account— Paragraph (3) of section 51(b) of such Code is amended by inserting “or who is a qualified work-based learning participant” after “subsection (d)(3)(A)(ii)(II)”.
Qualified Work-Based Learning Participant— Section 51(d) of such Code is amended by adding at the end the following:
“(16) Qualified Work-Based Learning Participant
“(A) In general—The term qualified work-based learning participant means an individual who—
“(i) is a member of one of the targeted group referred to in subparagraphs (A) through (J) of paragraph (1), and
“(ii) enrolled in a qualifying work-based learning opportunity either—
“(I) within 3-month period beginning on the hiring date, or
“(II) in the case of a program described in subparagraph (B)(iii), during the six-month period prior to the hiring date.
“(B) Qualifying work-based learning opportunity—For the purpose of this paragraph, the term qualifying work-based learning opportunity means—
“(i) an apprenticeship program registered under the Act of August 16, 1937 (commonly known as the National Apprenticeship Act; 50 Stat. 664, chapter 663; 29 U.S.C. 50 et seq.),
“(ii) a program that has been approved by the designated local agency and that may be provided directly by an employer, or in partnership with one or more training providers, in which—
“(I) the training is provided to individuals who are full-time employees of the employer,
“(II) training consists of on the job instruction or a combination of on the job and classroom instruction, and
“(III) successful completion of the training program, or modules of the training program—
“(aa) provides for an increase in hourly wages for the employee, and
“(bb) may provide for the attainment of a recognized postsecondary credential (as defined under the Workforce Innovation and Opportunity Act), and
“(iii) a program that has been approved by the designated local agency as under clause (ii) in which a third party serves as employer of record for purposes of operating an approved program with the participating employer.”
Credit for tax-Exempt employers for employment of qualified work-Based learning participants—
In general— Paragraph (1) of section 3111(e) of such Code is amended by inserting “or qualified work-based learning participant” after “qualified veteran” both places it appears.
Overall limitation— Paragraph (2) of section 3111(e) of such Code is amended by inserting “or qualified work-based learning participants” after “qualified veterans”.
Applicable period— Paragraph (4) of section 3111(e) of such Code is amended by inserting “or qualified work-based learning participant” after “qualified veteran” both places it appears.
Definitions— Paragraph (5) of section 3111(e) of such Code is amended by striking “and” at the end of subparagraph (A), by striking the period at the end of subparagraph (B) and inserting “, and”, and by inserting after subparagraph (B) the following:
“(C) the term qualified work-based learning participant has the meaning given such term by section 51(d)(16).”
Effective date— The amendments made by this section shall apply to wages paid after 90 days after the date of the enactment of this Act, with respect to enrollment in qualifying work-based learning programs beginning after such date.