Investing in American Workers Act
Congress considers tax credit to boost employer training for lower-paid workers; small firms can offset payroll taxes
Legislative Progress
Key Points
- Creates a new tax credit for employers that increase spending on job training for lower-paid workers who aren’t considered “highly compensated.”
- The credit is generally 20% of the amount a company’s training spending is above its average training spending from the prior 3 years (so it rewards increased training).
- Training must lead to a recognized credential, like an apprenticeship completion, an industry certificate, a state or federal license, or a college degree, and must come from approved kinds of programs (like community colleges, unions, or registered apprenticeships).
- Small businesses and certain tax-exempt organizations can choose to use up to $250,000 of the credit to offset payroll taxes, which can help even if they don’t owe much income tax.
- The bill also tells Treasury to work on simpler filing options for smaller employers and tells Labor and Treasury to issue guidance on what counts as a recognized credential.
Impact Analysis
Personal Impact
How this policy affects specific groups of people
Milestones
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articles
Warner, Krishnamoorthi Introduce Legislation to Help Workers Adapt to AI-Driven Economy
Announces the Investing in American Workers Act, proposing a 20% credit for increased employer training tied to recognized credentials, aimed at lower- and moderate-income workers and adapting to AI-driven change.
Taxation & Representation, Jan. 7, 2026
Notes companion versions introduced Dec. 16 and summarizes the bill’s 20% incremental training credit and the option for small businesses/tax-exempts to apply it against payroll taxes.
Source Information
Document Type
Congressional Bill
Official Title
Investing in American Workers Act
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.