USA Workforce Investment Act
- Bill Number
- H.R. 5493
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2025-09-18: Referred to the House Committee on Ways and Means.
- Last Updated
- 2025-11-21T15:58:20Z
AI-Generated Summary
USA Workforce Investment Act (H.R. 5493)
Purpose
This legislation creates a federal tax credit to encourage individual charitable donations to nonprofit organizations that deliver workforce development and apprenticeship training programs.
Key Provisions
- Tax Credit Creation: Adds a new Section 25G to the Internal Revenue Code allowing eligible individuals a credit against federal income tax equal to the amount of qualified cash contributions made during the tax year.
- Credit Limits: Caps the credit at $1,700 per taxpayer per year; reduces the federal credit by any amount claimed on a state tax return for the same contributions.
- Qualified Contributions: Must be cash donations to eligible 501(c)(3) nonprofits (not private foundations) that are listed as eligible providers under the Workforce Innovation and Opportunity Act (WIOA) and designated specifically for workforce training programs.
- Double Benefit Prohibition: Contributions receiving the credit cannot also be claimed as charitable deductions under Section 170.
- Carryforward: Allows unused credit amounts to be carried forward for up to five subsequent tax years on a first-in, first-out basis.
- Eligibility: Applies only to U.S. citizens or residents; organizations must meet WIOA eligibility standards for providing training services.
Significant Changes to Existing Law
- Introduces a new nonrefundable tax credit (Section 25G) in Subpart A of Part IV of Subchapter A of Chapter 1 of the Internal Revenue Code.
- Amends Section 25(e)(1)(C) to include the new credit in the list of credits subject to overall limitations.
- Updates the table of sections to reference the new provision.
- Applies prospectively to tax years beginning after the date of enactment.
Potential Impacts
- On Citizens: Provides a direct financial incentive for individuals to support workforce training through donations, potentially increasing private funding for such programs.
- On Government Agencies: The Internal Revenue Service would administer the credit; the Department of Labor's existing WIOA provider lists would determine organizational eligibility, with no new federal agency structures created.
- On International Relations: No direct effects identified in the legislation.
Main Stakeholders Affected
- Individual U.S. taxpayers who make donations to eligible organizations.
- Nonprofit workforce development and apprenticeship training providers listed under WIOA.
- State governments that offer similar tax credits, due to the federal credit reduction mechanism.
- Participants in workforce training programs, through potential increases in program funding.
Notable Legal, Constitutional, or Political Implications
- Operates within Congress's authority to modify the tax code and provide incentives for charitable giving.
- Creates a targeted tax benefit that interacts with existing charitable deduction rules and state tax policies.
- Limits credit carryforward to five years to control long-term fiscal effects.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (4)
Rep. Smith, Adrian [R-NE-3], Rep. Kelly, Mike [R-PA-16], Rep. Miller, Max L. [R-OH-7], Rep. Moran, Nathaniel [R-TX-1]
Recent Actions
- 2025-09-18: Referred to the House Committee on Ways and Means.
- 2025-09-18: Introduced in House
- 2025-09-18: Introduced in House
Bill Versions
- USA Workforce Investment Act — issued 2025-09-18 — PDF (5 pages)