Sponsors (5)
Official title: To amend the Internal Revenue Code of 1986 to establish a credit for workforce artificial intelligence training, and for other purposes.
The bill incentivizes employer-provided AI upskilling through a targeted tax credit and outreach—likely expanding worker training—at the cost of reduced federal revenue, additional administrative and compliance burdens, and limits in coverage and transparency for who fully benefits.
Small businesses and other employers can claim a 30% tax credit (up to $2,500 per employee per year) for qualifying AI training costs, lowering employers' net cost to provide AI upskilling and encouraging investment in workforce training.
Workers (including tech employees and students) are more likely to gain paid access to accredited AI training—covering skills like prompt engineering, data literacy, machine learning, and AI ethics—because wages paid during training are eligible for the credit and employers are incentivized to offer training time.
Targeted outreach via Small Business Development Centers, workforce boards, webinars, and multilingual materials should increase awareness and uptake of the credit, making it easier for small employers to learn about and use the program.
The tax credit reduces federal revenue and therefore could increase the federal deficit or crowd out other federal spending priorities.
The $2,500 per‑employee cap (before inflation indexing) may be inadequate for high-cost or extensive AI programs, leaving employers—especially those financing more comprehensive training—to cover substantial remaining costs.
Rules disallowing other deductions/credits for the same expenses and required basis reductions can create longer‑term tax consequences (higher taxable gains on future dispositions) and complicate tax planning for businesses.
Based on analysis of 3 sections of legislative text.
Creates a 30% nonrefundable business tax credit (up to $2,500 per employee) for qualified AI training expenses for taxable years after 2025.
Introduced February 13, 2026 by Josh S. Gottheimer · Last progress February 13, 2026
Creates a new 30% nonrefundable business tax credit for qualified AI workforce training expenses, capped at $2,500 per employee per year (indexed for inflation after 2026). Qualified expenses include tuition/enrollment in accredited AI training, wages paid while employees attend training, and costs to develop or provide in‑house AI training. The credit applies to taxable years beginning after December 31, 2025. Directs the Treasury, Labor, and Commerce Departments to launch a public outreach campaign within 180 days to promote the credit, provide multilingual materials and webinars, and report to Congress within 360 days and annually thereafter on outreach activities and measurable outcomes.