To amend the Internal Revenue Code of 1986 to allow a credit against income tax for information technology training expenses, and for other purposes.

May 9, 2001

Mr. WELLER (for himself, Mr. MORAN of Virginia, Mr. MCGOVERN, Mr. ROGERS of Michigan, Mr. BOUCHER, Mr. HONDA, Mr. GORDON, Mr. VITTER, Mr. COX, Mr. TOM DAVIS of Virginia, Mr. GOODLATTE, Mr. CANNON, Mr. KENNEDY of Minnesota, Mr. OSE, and Mrs. KELLY) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to allow a credit against income tax for information technology training expenses, and for other purposes.

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 `Technology Education and Training Act of 2001'.

SEC. 2. CREDIT FOR INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.

(a) IN GENERAL- Subpart B 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:

`SEC. 30B. INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES.

`(a) GENERAL RULE- In the case of a taxpayer engaged in a trade or business during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter for such taxable year an amount equal to 100 percent of information technology training program expenses of the taxpayer and any employee of the taxpayer paid or incurred by the taxpayer during such taxable year.

`(b) LIMITATION-

`(1) IN GENERAL- The amount of information technology training program expenses with respect to any individual which may be taken into account under subsection (a) for the taxable year shall not exceed $1,500.

`(2) INCREASE IN CREDIT AMOUNT FOR PARTICIPATION IN CERTAIN PROGRAMS AND FOR CERTAIN INDIVIDUALS- The dollar amount in paragraph (1) shall be increased (but not above $2,000) by the amount of information technology training program expenses paid or incurred by the taxpayer--

`(A) with respect to a program operated--

`(i) in an empowerment zone or enterprise community designated under part I of subchapter U or a renewal community designated under part I of subchapter X,

`(ii) in a school district in which at least 50 percent of the students attending schools in such district are eligible for free or reduced-cost lunches under the school lunch program established under the National School Lunch Act,

`(iii) in an area designated as a disaster area by the Secretary of Agriculture or by the President under the Disaster Relief and Emergency Assistance Act in the taxable year or the 4 preceding taxable years,

`(iv) in a rural enterprise community designated under section 766 of the Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 1999,

`(v) in an area designated by the Secretary of Agriculture as a Rural Economic Area Partnership Zone,

`(vi) in an area over which an Indian tribal government (as defined in section 7701(a)(40)) has jurisdiction, or

`(vii) by an employer who has 200 or fewer employees for each business day in each of 20 or more calendar weeks in the current or preceding calendar year, or

`(B) in the case of an individual with a disability.

`(c) INFORMATION TECHNOLOGY TRAINING PROGRAM EXPENSES- For purposes of this section--

`(1) IN GENERAL- The term `information technology training program expenses' means expenses paid or incurred by reason of the participation of the taxpayer (or any employee of the taxpayer) in any information technology training program if such expenses lead to an industry-accepted information technology certification for the participant. Such term shall only include includes expenses paid for in connection with course work and certification testing which is essential to assessing skill acquisition.

`(2) INFORMATION TECHNOLOGY TRAINING PROGRAM- The term `information technology training program' means a program for an industry-accepted information technology certification--

`(A) by any information technology trade association or corporation, and

`(B) which--

`(i) is provided for the employees of such association or corporation, or

`(ii) involves--

`(I) employers, and

`(II) State training programs, school districts, university systems, higher education institutions (as defined in section 101(b) of the Higher Education Act of 1965), or certified commercial information technology training providers.

`(3) CERTIFIED COMMERCIAL INFORMATION TECHNOLOGY TRAINING PROVIDER-

`(A) IN GENERAL- The term `certified commercial information technology training provider' means a private sector organization providing an information technology training program which leads to an approved information technology industry certification for the participants.

`(B) APPROVED INDUSTRY CERTIFICATION- For purposes of paragraph (1), an information technology industry certification shall be considered approved if such certification is approved by the Secretary, in consultation with the Information Technology Training Certification Advisory Board.

`(d) DENIAL OF DOUBLE BENEFIT- No deduction or credit under any other provision of this chapter shall be allowed with respect to information technology training program expenses taken into account for the credit under this section.

`(e) CERTAIN RULES MADE APPLICABLE- For purposes of this section, rules similar to the rules of section 45A(e)(2) and subsections (c), (d), and (e) of section 52 shall apply.

`(f) APPLICATION WITH OTHER CREDITS- The credit allowed by subsection (a) for any taxable year shall not exceed the excess (if any) of--

`(1) the regular tax for the taxable year reduced by the sum of the credits allowable under the subpart A and the previous sections of this subpart, over

`(2) the tentative minimum tax for the taxable year.'.

(b) CLERICAL AMENDMENT- The table of sections for subpart B 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:

`Sec. 30B. Information technology training program expenses.'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to amounts paid or incurred in taxable years beginning after December 31, 2001.

SEC. 3. INFORMATION TECHNOLOGY TRAINING CERTIFICATION ADVISORY BOARD.

(a) ESTABLISHMENT- There is established an Information Technology Training Certification Advisory Board (in this section referred to as the `Board').

(b) MEMBERSHIP- The Board shall be composed of not more than 15 members appointed by the Secretary of the Treasury from among individuals--

(1) associated with information technology certification and training associations and businesses; and

(2) who are not officers or employees of the Federal Government.

(c) MEETINGS- The Board shall meet not less often than annually.

(d) CHAIRPERSON-

(1) IN GENERAL- Subject to paragraph (2), the Board shall elect a Chairperson from among its members.

(2) CHAIRPERSON- The chairperson shall be an individual who is a member of an information technology industry trade association.

(e) DUTIES- The Board shall develop a list of information technology industry certifications, for approval by the Secretary of the Treasury, that qualify the provider of the certification as a certified commercial information technology training provider under section 30B(c)(3) of the Internal Revenue Code of 1986, as added by section (2)(a).

(f) SUBMISSION OF LIST- Not later than October 1, 2001, and each year thereafter, the Board shall submit the list required under subsection (e) to the Secretary of the Treasury.

(g) BOARD PERSONNEL MATTERS-

(1) COMPENSATION OF MEMBERS- Each member of the Board shall serve without compensation.

(2) TRAVEL EXPENSES- Each member of the Board shall be allowed travel expenses, including per diem in lieu of subsistence, at rates authorized for employees of agencies under subchapter I of chapter 57 of title 5, United States Code, while away from

their homes or regular places of business in the performance of services for the Board.

(h) TERMINATION OF THE BOARD- Section 14(b) of the Federal Advisory Committee Act (5 U.S.C. App.) shall not apply to the Board.

SEC. 4. HOPE SCHOLARSHIP AND LIFETIME LEARNING CREDITS INCLUDE TECHNOLOGY TRAINING CENTERS.

(a) IN GENERAL- Section 25A(f)(2) of the Internal Revenue Code of 1986 (relating to eligible educational institution) is amended to read as follows:

`(2) ELIGIBLE EDUCATIONAL INSTITUTION- The term `eligible educational institution' means--

`(A) an institution--

`(i) which is described in section 101(b) of the Higher Education Act of 1965, and

`(ii) which is eligible to participate in a program under title IV of such Act, or

`(B) a certified commercial information technology training provider (as defined in section 30B(c)(3)).'.

(b) CONFORMING AMENDMENT- The second sentence of section 221(e)(2) of the Internal Revenue Code of 1986 is amended by striking `section 25A(f)(2)' and inserting `section 25A(f)(2)(A)'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2001.

END