Bill Summary
The "USA Workforce Investment Act" proposes an amendment to the Internal Revenue Code of 1986 that introduces a tax credit for individuals who make charitable donations to nonprofit organizations dedicated to workforce development and apprenticeship training programs.
Key provisions of the legislation include:
1. **Tax Credit Creation**: Individuals who contribute to qualified workforce development organizations can receive a tax credit equal to the total amount of their contributions, up to a maximum of $1,700 per taxable year.
2. **Qualified Contributions**: The donations must be cash contributions to eligible organizations that are recognized as 501(c)(3) nonprofit entities and are listed as approved providers under the Workforce Innovation and Opportunity Act.
3. **Limitations and Reductions**: The tax credit may be reduced by any state tax credits received for the same contributions, and contributions for which this credit is claimed cannot be counted again as charitable contributions for other tax purposes.
4. **Carryforward Provision**: If the credit exceeds the annual limit, the unused portion can be carried forward to future tax years, but it can only be used within five years of the original contribution year.
The legislation aims to incentivize charitable giving to organizations that provide essential workforce training, thereby enhancing job preparedness and economic opportunities for individuals. The provisions are set to take effect for taxable years beginning after the enactment of the Act.
Possible Impacts
Here are three examples of how the proposed legislation, the "USA Workforce Investment Act," could affect people:
1. **Increased Charitable Contributions**: Individuals who are financially capable of making charitable donations may be encouraged to contribute to nonprofit organizations that provide workforce training due to the tax credit of up to $1,700. This could lead to an increase in funding for these organizations, allowing them to expand their programs, hire more trainers, or provide more resources to individuals seeking workforce development.
2. **Enhanced Workforce Opportunities**: Beneficiaries of the workforce development and apprenticeship training programs may experience improved employment prospects as a result of increased funding and resources from the nonprofit organizations. This could lead to individuals gaining valuable skills and certifications, ultimately contributing to a more skilled workforce and potentially reducing unemployment rates in the community.
3. **Tax Relief for Donors**: Individuals making qualified contributions will receive a tax credit, which reduces their overall tax liability. This can provide financial relief for those who are already making charitable contributions, effectively incentivizing philanthropy. For donors who were already supporting workforce training initiatives, this legislation allows them to maximize their impact while receiving a financial benefit, potentially encouraging them to contribute even more.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5493 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 5493
To amend the Internal Revenue Code of 1986 to allow a credit against
tax for charitable donations to nonprofit organizations providing
workforce training.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 18, 2025
Mr. Smucker (for himself, Mr. Smith of Nebraska, Mr. Kelly of
Pennsylvania, and Mr. Miller of Ohio) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow a credit against
tax for charitable donations to nonprofit organizations providing
workforce training.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``USA Workforce Investment Act''.
SEC. 2. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO WORKFORCE
DEVELOPMENT OR APPRENTICESHIP TRAINING PROGRAMS.
(a) Allowance of Credit.--
(1) In general.--Subpart A of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 25F the following new section:
``SEC. 25G. CONTRIBUTIONS TO WORKFORCE DEVELOPMENT AND APPRENTICESHIP
TRAINING PROGRAMS.
``(a) Allowance of Credit.--In the case of an individual who is a
citizen or resident of the United States (within the meaning of section
7701(a)(9)), there shall be allowed as a credit against the tax imposed
by this chapter for the taxable year an amount equal to the aggregate
amount of qualified contributions made by the taxpayer during the year.
``(b) Limitations.--
``(1) In general.--The credit allowed under subsection (a)
to any taxpayer for any taxable year shall not exceed $1,700.
``(2) Reduction based on state credit.--The amount allowed
as a credit under subsection (a) for a taxable year shall be
reduced by the amount allowed as a credit on any State tax
return of the taxpayer for qualified contributions made by the
taxpayer during the taxable year.
``(c) Definitions.--For purposes of this section--
``(1) Qualified contribution.--The term `qualified
contribution' means a charitable contribution (as defined by
section 170(c)) to a workforce development or apprenticeship
training organization in the form of cash if such contribution
is designated by such organization to be used only for the
purpose of providing workforce development or apprenticeship
training programs.
``(2) Workforce development or apprenticeship training
organization.--The term `workforce development or
apprenticeship training organization' means any organization
which--
``(A) is described in section 501(c)(3), is exempt
from tax under section 501(a), and is not a private
foundation, and
``(B) is included on a list of providers prepared
under subsection (d) of section 122 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3152) by
reason of having been determined to be eligible to
offer a program under such section.
``(3) Workforce development or apprenticeship training
program.--The term `workforce development or apprenticeship
training program' means a program to provide training services
(within the meaning of section 134(c)(3) of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3174(c)(3))).
``(d) Denial of Double Benefit.--Any qualified contribution for
which a credit is allowed under this section shall not be taken into
account as a charitable contribution for purposes of section 170.
``(e) Carryforward of Unused Credit.--
``(1) In general.--If the credit allowable under subsection
(a) for any taxable year exceeds the limitation imposed by
section 26(a) for such taxable year reduced by the sum of the
credits allowable under this subpart (other than this section
and sections 23, 25D, and 25E), such excess shall be carried to
the succeeding taxable year and added to the credit allowable
under subsection (a) for such taxable year.
``(2) Limitation.--No credit may be carried forward under
this subsection to any taxable year following the fifth taxable
year after the taxable year in which the credit arose. For
purposes of the preceding sentence, credits shall be treated as
used on a first-in first-out basis.''.
(2) Conforming amendments.--
(A) Section 25(e)(1)(C) of such Code is amended by
striking ``and 25F'' and inserting ``25F, and 25G''.
(B) The table of sections for subpart A of part IV
of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 25E the
following new item:
``Sec. 25G. Contributions to workforce development and apprenticeship
training programs.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
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