Compliance January 4, 2003

Senate Bill Offers Tech Training Tax Credit

April 25, 2001 (PLANSPONSOR.com) - A new bill has been introduced in the Senate that would provide tax credits to employers and individuals for IT training expenses.
Reported by

Sponsored by Senators Kent Conrad (D-ND), Olympia Snowe (R-ME), Mike DeWine (R-OH), and Harry Reid (D-NV), the Technology Education and Training Act (TETA) of 2001 would offer tax credits of up to $2,000 for IT training expenses.

The bill provides tax credits for businesses that offer training for workers or other individuals in information technology skills.

Credit “Worthy”

The credit would be equal to 100% of the first $1,500 of information technology expenses businesses spend on behalf of an individual, increasing to $2,000 per individual if the training program offered by the business is located or operated in:

  • an empowerment zone
  • an enterprise community
  • a school district where at least 50% of students are eligible to participate in the school lunch program
  • a tribal community
  • a small business employer
  • in an area designated by the President or Secretary of Agriculture as a disaster zone
  • or for an individual with a disability.

The tax credit would apply to businesses providing the IT training directly or through certified commercial information technology training providers.

The legislation would also amend current law to permit individuals enrolled in non-degree IT training programs that lead to certification in advanced IT skills to be eligible for the Hope Scholarship and Lifetime Learning Credit.

– Nevin Adams                      editors@plansponsor.com

«