Bipartisan Bill Would Give Small Businesses a Tax Credit for Employee Training

A bipartisan group of congressmen has filed legislation to encourage employers to invest more in training and educating their employees.

The legislation would create a tax credit for 25 percent of the first $5,000, or up o $1,250, that an employer spends on qualified education and training expenses for an employee.

Representatives Randy Hultgren (R-Ill.), Mike Thompson (D-Calif.), Bradley Byrne (R-Ala.) and Derek Kilmer (D-Was.) introduced the Career Advancement Through New Skills Act, which they hope will incentivize employers to provide employees with the necessary training needed to close the skill gap that exists between employers’ needs and employees in many industries.

“One the greatest challenges facing workers today is connecting the skills and knowledge they have with the jobs that actually exist. Similarly, small businesses have trouble finding qualified applicants for the jobs of the 21st century. This bill encourages these employers to put resources toward training and educating workers for the jobs that exist now,” said Rep. Hultgren. “Let’s help the backbone of our economy—small businesses—create opportunity for their workers in order to grow.”

The 25 percent tax credit would be applied to the cost of programs or training to maintain or improve the skills of workers to meet the employer’s needs.

“The nation’s skills gap is significant. Small businesses across the country report being unable to find qualified applicants and CEOs report shortages of workers for skilled, well-paying jobs,” said Rep. Thompson.

“As a Congress, we should always be looking for new ways to help Americans gain the skills they need to succeed in today’s 21st Century economy,” said Rep. Byrne.

“Giving seasoned employees the opportunity to learn and build new skills while on the job helps our economy grow,” said Rep. Kilmer. “The federal government can and should be a partner in supporting classes and training offered by companies that can give more stability to their workers and put them in a position to earn more money.”

Topics Commercial Lines Business Insurance Training Development