H.R. 9438: Supporting Knowledge through Industry-Led Learning Act

This bill would create a new federal tax credit for businesses that help support education and workforce training programs run by colleges, universities, and apprenticeship programs.

What the tax credit would do

Starting with tax years ending after December 31, 2026, a business could get a tax credit if it is certified as contributing to a qualifying program. The credit would be part of the general business tax credit.

The credit would be worth the lesser of:

• $2,500 for each student who earns a degree, certificate, or credential from a qualifying program during the year, and
• $2,500 for each student who earned a degree, certificate, or credential in that year or the previous year and is hired full-time by the business during the year,

or the amount of credit that a state agency has allocated to that business for that year.

Which businesses could qualify

A business would have to be certified by a state agency as making contributions to a qualifying program. Contributions could include:

• helping design the curriculum or skills assessments,
• offering internships, hands-on learning, registered apprenticeships, or lab access, or
• donating money, equipment, or services.

Which programs could qualify

A program would qualify if it is:

• run in coordination with qualifying employers,
• certified by the state agency,
• offered by a public college, university, community college, or technical college, and
• designed to be completed in two years or less.

How the credit would be limited and distributed

The bill sets a national cap on the total amount of credits that can be allocated each year:

• $500 million per year for calendar years 2027 through 2031
• zero after 2031

The IRS Secretary would divide that national amount among the states based on population. Then each state’s designated agency would allocate credits to employers on a competitive basis. If a state does not use all of its allocation in a given year, the unused amount would carry over to the next year.

Administrative details

The bill would let the Treasury Department issue regulations or guidance needed to carry out the program.

Relevant Companies

None found