Sponsors (2)
The bill incentivizes employers to hire and invest in short-term, employer-aligned training—benefiting students, community colleges, and participating employers—while constraining overall reach through a modest national cap, nonrefundable credits, program exclusions, federal revenue costs, and added state administrative responsibilities.
Small and mid-sized employers that are certified by a State can reduce their federal tax liability by claiming up to $5,000 per student (for program completion + hire), improving the financial case for hiring and training students.
Students in short (≤2 year) workforce programs and the public community, technical, and 2‑year colleges that serve them gain stronger employer ties, internships, hiring pathways, and increased employer investment, improving job placement and program alignment with employer needs.
State governments get flexibility to allocate limited credits competitively through designated agencies, allowing targeting of funds to high-value employer–training partnerships.
Many qualifying employers and students may not receive any benefit because the program is capped at $500 million per year (2027–2031), limiting the number of credits available nationwide.
The credit reduces federal revenue by up to roughly $2.5 billion over 2027–2031, which could require budget offsets or reduce funding available for other federal programs and services taxpayers rely on.
Because the credit is nonrefundable, very small or new employers with little or no federal tax liability may not be able to use the credit immediately, limiting the incentive for precisely the firms the policy seeks to engage.
Based on analysis of 2 sections of legislative text.
Creates a new nonrefundable business tax credit for employers tied to certified workforce program completions and hires, with state allocations from a $500M/year national pool (2027–2031).
Creates a new nonrefundable business tax credit to encourage employers to sponsor or hire students from qualified workforce training programs. The credit pays up to specified per-student amounts for program completions and for hires, and states receive competitive allocations of the national credit pool. The credit is available for taxable years ending after Dec 31, 2026, is added to the general business credit, and is subject to a national calendar-year cap of $500 million for each year 2027–2031 (no national cap after 2031). States receive allocations based on population and run competitive programs to certify employers and allocate credit amounts to qualifying employers.
Official title: To amend the Internal Revenue Code of 1986 to provide a credit for businesses that contribute to educational and workforce training consortia programs.
Introduced June 24, 2026 by Sam T. Liccardo · Last progress June 24, 2026