A tax credit would be established to encourage employers to make investments in training their employees in the skills they need to both earn better wages and help the economy grow under bipartisan legislation recently introduced by U.S. Rep. Randy Hultgren (R-IL).
The Career Advancement Through New Skills Act would establish a tax credit for 25 percent of the first $5,000 that an employer spends on education and training expenses for an employee. The credit could be used to cover program costs and training that maintain or enhance a worker’s skills.
“One of the greatest challenges facing workers today is connecting the skills and knowledge they have with the jobs that actually exist,” Hultgren said. “Similarly, small businesses have trouble finding qualified applicants for the jobs of the 21st century. This bill encourages these employers to put resources toward training and educating workers for the jobs that exist now. Let’s help the backbone of our economy — small businesses — create opportunity for their workers in order to grow.”
Hultgren introduced the bill with bipartisan support from U.S. Reps. Mike Thompson (D-CA), Bradley Byrne (R-AL) and Derek Kilmer (D-WA).
“Small businesses across the country report being unable to find qualified applicants and CEOs report shortages of workers for skilled, well-paying jobs,” Thompson said. “This bill would help narrow that gap by encouraging businesses to invest in the education and training of their employees, helping workers expand their skills while earning money and advancing their career and giving employers the skilled workforce they need to build their businesses.”
Byrne added that Congress should always be on the lookout for new ways to help workers develop skills required for them to succeed in the 21st century workforce. “Through this bipartisan legislation, we can make a real impact by encouraging employers to take a direct and active role in job training,” he said.