H.R. 5493: USA Workforce Investment Act (119th Congress) Bill Summary

This bill, titled the USA Workforce Investment Act, aims to amend the Internal Revenue Code to establish a tax credit for individuals who make charitable donations to nonprofit organizations that provide workforce training. The key provisions of the bill are summarized below:

Tax Credit for Charitable Contributions

Individuals who are citizens or residents of the United States can receive a tax credit for contributions made to qualified organizations that focus on workforce development and apprenticeship training. This tax credit serves as an incentive for individuals to financially support these programs.

Qualified Contributions

A qualified contribution refers to charitable donations made in cash to a registered organization that is dedicated to providing workforce training or apprenticeship programs. The organization must:

Be recognized as a charity under section 501(c)(3) of the Internal Revenue Code.
Not be classified as a private foundation.
Be listed as eligible to offer programs under the Workforce Innovation and Opportunity Act.

Credit Limitations

The amount of tax credit an individual can claim is capped at $1,700 for each taxable year. If an individual also claims a similar credit on their state tax return for the same contribution, this amount will reduce the federal tax credit by the amount of the state credit received.

Denial of Double Benefit

Any contributions for which a credit is claimed under this section cannot also be counted as a charitable contribution when considering deductions for federal taxes under section 170.

Carryforward of Unused Credit

If the credit for a tax year exceeds the allowable limit, the excess amount can be carried forward to the next taxable year, provided this is within five years of the original tax year. This allows individuals to maximize the benefits of their contributions over multiple years.