AI Workforce Training Act

Bill Number

H.R. 7576

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Taxation

Status

Introduced

Latest Action

2026-02-13: Referred to the House Committee on Ways and Means.

Last Updated

2026-05-22T08:07:22Z

AI-Generated Summary

Purpose of the Legislation

The AI Workforce Training Act (H.R. 7576) aims to encourage businesses to invest in training their employees on artificial intelligence (AI) skills by providing a tax incentive. This is intended to build a more skilled workforce in emerging AI technologies, helping workers adapt to technological changes in the job market.

Key Provisions

• Tax Credit Establishment: Creates a new tax credit under Section 45BB of the Internal Revenue Code (IRC), offering businesses a 30% credit on qualified AI training expenses for each employee.
• The credit is capped at $2,500 per employee per taxable year.
• The cap adjusts for inflation starting in taxable years after 2026, based on cost-of-living changes (using 2025 as the base year).
• Qualified Expenses: Eligible costs include:
• Fees for enrolling employees in accredited AI training programs, such as workshops, certificate courses, or classes on topics like prompt engineering (crafting inputs for AI systems), data literacy (understanding data for AI use), machine learning basics, or AI ethics (moral considerations in AI development).
• Wages paid to employees while they attend these trainings (wages defined as in unemployment insurance law, without dollar limits).
• Costs for developing or delivering in-house AI training programs.
• Rules to Prevent Overlap: Businesses cannot claim other tax credits or deductions for the same expenses used for this credit. It also reduces the tax basis of any related property.
• Administration: The U.S. Treasury Secretary can issue rules to implement the credit and prevent misuse.
• Integration with Existing Credits: The new credit is added to the general business credit under IRC Section 38, allowing it to be claimed alongside other business incentives.
• Effective Date: Applies to taxable years beginning after December 31, 2025.
• Public Outreach and Reporting:
• Within 180 days of enactment, the Secretaries of Treasury, Labor, and Commerce must launch a joint campaign to promote the credit, including website information, business webinars, and multilingual materials distributed via small business centers, trade groups, and workforce boards.
• Within 360 days of enactment, and annually thereafter, these secretaries must report to Congress on the campaign's activities and results (e.g., awareness levels or participation rates).

Significant Changes to Existing Law

• Adds a entirely new tax credit section (45BB) to the IRC, which did not previously include incentives specifically for AI workforce training.
• Amends IRC Section 38 to incorporate this credit into the broader general business credit framework, expanding available business tax relief options.
• No changes to unrelated tax laws, but introduces inflation adjustments tied to existing IRC cost-of-living mechanisms.

Potential Impacts

• On Businesses: Lowers the after-tax cost of AI training by up to 30%, potentially increasing investment in employee development and helping companies stay competitive in AI-driven industries.
• On Citizens/Workers: Improves access to AI skills training, which could lead to better job opportunities, higher wages, and reduced skill gaps in the workforce, especially for those in tech-related fields.
• On Government Agencies: Requires coordination among Treasury (for tax administration), Labor (for workforce issues), and Commerce (for business promotion) for outreach and reporting, adding administrative workload but no new funding mandates.
• On International Relations: Minimal direct impact, though it could indirectly strengthen U.S. competitiveness in global AI innovation by upskilling the domestic workforce.

Main Stakeholders Affected

• Businesses and Employers: Primary beneficiaries, as they can claim the credit for training expenses; small businesses may gain extra support through outreach channels.
• Employees and Workers: Indirectly benefit from subsidized training opportunities to learn AI skills.
• Government Entities: U.S. Treasury (IRS for credit processing), Department of Labor, and Department of Commerce (for campaign implementation and reporting); Congress receives ongoing updates.
• Support Organizations: Small business development centers, trade associations, and workforce boards, which will distribute outreach materials.

Notable Legal, Constitutional, or Political Implications

• Legal: As a tax credit, it fits within Congress's constitutional power to levy and spend under Article I, Section 8, without raising equal protection or due process concerns. The denial of double benefits ensures compliance with IRC anti-abuse rules, and Treasury regulations provide flexibility for enforcement.
• Constitutional: No apparent conflicts; it promotes economic policy without infringing on individual rights.
• Political: Represents a bipartisan effort (introduced by Representatives Gottheimer and Lawler) to address AI's rapid growth, potentially influencing future tech policy debates on workforce adaptation. It could spark discussions on expanding similar incentives for other emerging technologies, but risks criticism if seen as favoring certain industries.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Gottheimer, Josh [D-NJ-5]

Cosponsors (3)

Rep. Lawler, Michael [R-NY-17], Rep. Green, Al [D-TX-9], Rep. Thanedar, Shri [D-MI-13]

Recent Actions

• 2026-02-13: Referred to the House Committee on Ways and Means.
• 2026-02-13: Introduced in House
• 2026-02-13: Introduced in House

Bill Versions

• AI Workforce Training Act — issued 2026-02-13 — PDF (6 pages)