U.S. Rep. Tom Emmer (R-MN) is joining a bipartisan group of lawmakers to introduce the Investing in American Workers Act of 2021, which would support America’s workforce and economic recovery efforts during the ongoing COVID-19 pandemic.
“Although our nation continues to face a skills gap, on-the-job educational and technical training opportunities will help us bridge the divide while giving Americans opportunities to advance their careers,” Rep. Emmer said on April 28.
The U.S. House of Representatives’ version of the bill will be companion legislation to the U.S. Senate version, S. 1422, introduced on April 28 in the U.S. Senate by several Democrats. According to Rep. Emmer’s office, the House bill will be introduced by Rep. Emmer and U.S. Rep. Raja Krishnamoorthi (D-IL) to create a tax credit toward incentivizing employers to invest in training tied to recognized postsecondary credentials for lower- and moderate-income workers.
“A four-year college degree should not, and cannot, be the only path to a successful career or financial security,” said Rep. Emmer. “This bipartisan legislation will promote apprenticeships and build a stronger American workforce. I am proud to join Rep. Krishnamoorthi in this effort to ensure Americans have access to good-paying jobs when they need it more than ever.”
Specifically, the measure would permit employers who spend more on training their workers in a given year than they have on average in the previous three years to become eligible for a tax credit based on their increase in spending, according to a bill summary provided by Rep. Emmer’s office, which noted that the credit’s amount would be equal to 20 percent of the increased spending. The spending eligible for the credit must be used to provide qualified training to employees earning $82,000 or less per year.
Among several other provisions, the bill also would incentivize high-quality training by detailing allowable providers and programs, according to the summary, and would encourage small businesses to upskill their workers by providing a simplified filing process and allowing them to apply the credit against payroll and alternative minimum taxes.
Workday and the National Skills Coalition have endorsed the proposal.