SKILL Act
- Bill Number
- H.R. 9438
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-06-24: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-07-07T17:12:46Z
AI-Generated Summary
Purpose The legislation establishes a federal tax credit to encourage businesses to support educational and workforce training programs operated in partnership with public colleges and universities.
Key Provisions
- Creates a new tax credit under Section 45BB of the Internal Revenue Code for qualifying employers.
- The credit equals the lesser of $2,500 per student who earns a degree, certificate, or credential from a qualifying program, or $2,500 per such student hired full-time by the employer in the same or prior year.
- Defines a qualifying employer as one certified by a state agency for contributions such as curriculum development, internships, apprenticeships, or donations of cash, equipment, or services.
- Defines a qualifying program as a training or registered apprenticeship program lasting two years or less, operated with employer input, certified by the state, and offered by public colleges, universities, or community/technical colleges.
- Limits total credits through a national annual cap of $500 million for calendar years 2027 through 2031, allocated to states based on population and then distributed competitively by designated state agencies.
- Adds the credit to the general business credit under Section 38 and includes carryover rules for unused state allocations.
- Applies to taxable years ending after December 31, 2026.
Significant Changes to Existing Law This bill introduces a new standalone tax credit section (45BB) into the Internal Revenue Code, creating an incentive mechanism not previously available for employer contributions to short-term workforce programs.
Potential Impacts
- Government agencies: Requires the IRS to administer the credit and state agencies to certify programs, allocate credits, and verify employer contributions.
- Citizens: May increase access to industry-aligned training and credentials for students and workers through expanded employer involvement.
- No direct effects on international relations are specified.
Main Stakeholders Affected
- Private businesses and employers seeking the credit.
- Public colleges, universities, and community/technical colleges offering qualifying programs.
- Students and workforce participants in approved programs.
- State agencies responsible for certification and allocation.
- The Department of the Treasury and IRS for federal oversight.
Notable Legal, Constitutional, or Political Implications The measure exercises Congress’s authority under the Taxing and Spending Clause to provide targeted tax incentives. It creates an administrative framework involving state-federal coordination for credit allocation. The bill was introduced with bipartisan sponsorship and focuses on workforce development without altering existing constitutional structures.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Liccardo, Sam T. [D-CA-16]
Cosponsors (1)
Recent Actions
- 2026-06-24: Referred to the House Committee on Ways and Means.
- 2026-06-24: Introduced in House
- 2026-06-24: Introduced in House
Bill Versions
- Supporting Knowledge through Industry-Led Learning Act — issued 2026-06-24 — PDF (6 pages)