Investing in American Workers Act

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.