Congress·In Committee·S. 3489

Investing in American Workers Act

Congress proposes new tax credit to reward employers for job training that leads to credentials

Dec 16, 2025·View on Congress.gov·Read full text

Next up: A senate committeeNo action in 7 months

A senate committee must act next: committee consideration.

Legislative Progress

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Key Points

This bill gives employers a tax break when they spend more on training workers than they did in recent years.
The credit is aimed at workers who are not top-paid employees, so it mostly targets everyday workers, not executives.
Training has to lead to a real credential like an apprenticeship certificate, a state license, or a college degree—basic on-the-job training may not count.
Small businesses and some nonprofit employers could choose to use up to $250,000 of the credit to lower their payroll tax bill, which can help even if they don’t owe much income tax.
If it becomes law, it would start for tax years after it’s enacted, and the government would set clearer rules on what training programs and credentials qualify.

TaxesLabor EmploymentEducationSmall Business

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Milestones

2 milestones2 actions

Dec 16, 2025Senate

Read twice and referred to the Committee on Finance.

Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.

Dec 16, 2025

Introduced in Senate

The bill was officially filed and given a number. It now enters the legislative queue.

Related News

3 articles

MeriTalk·Dec 17, 2025

Lawmakers Introduce Bill to Expand Employee Tech Skills

Covers the Investing in American Workers Act introduced in House and Senate, proposing a tax credit for employer investments in credentialed worker training (incl. emerging tech like AI).

Center

Brownstein Hyatt Farber Schreck (Brownstein)·Jan 7

Taxation & Representation, Jan. 7, 2026

Legislative roundup noting Rep. Raja Krishnamoorthi and Sen. Mark Warner introduced the Investing in American Workers Act on Dec. 16, creating a 20% employer training tax credit and payroll-tax offset for small/tax-exempt entities.

Center