On October 31st, Senators Mark R. Warner (D-VA), Robert P. Casey Jr. (D-PA), and Debbie Stabenow (D-MI), introduced the Investing in American Workers Act; a bill that would incentivize employers to dedicate more resources to worker training.
This targeted legislation creates a tax credit to benefit employers who demonstrate a commitment to upskilling their workers. More specifically, employers who invest more capital in training in one year than they have in the previous three years would be eligible for a tax credit that equals 20 percent of their increased spending. Notably, small businesses and tax-exempt organizations would be permitted to apply their credit to payroll taxes—maximizing the efficiency of the benefit.
To help ensure that employers are offering high-quality training to their workers, the Investing in American Workers Act specifies which providers and programs employers may utilize to qualify for the credit. These include WIOA-certified training programs, nationally or state-recognized apprenticeships, and programs sponsored by an industry or sector partnership. Additionally, completion of the training must result in the achievement of a recognized postsecondary credential; a term that would be defined by the Secretary of Labor within one year of the bill’s passage.
Investing in skilled workers is crucial to the success of the small and mid-sized businesses that keep our economy running. Incentivizing employers to capitalize on sector partnerships and other 21st-century training models is consistent with the proposals outlined in our New Skills for Good Jobs Agenda. We applaud Senators Warner, Casey, and Stabenow for their leadership and look forward to working with members of Congress to advance this important legislation.