# Workforce Development Investment Act of 2023

This bill creates two new tax credits designed to encourage employers to invest in training and education programs for their workers. Essentially, the government is offering companies money back on their taxes if they partner with schools or pay for employee training.

The first credit rewards companies that work directly with educational institutions like community colleges, universities, and technical schools. If a company partners with one of these schools to develop job training programs, help teach classes, or offer internships and apprenticeships to students, they can claim a $5,000 tax credit per school they partner with. However, no single company can claim more than $20,000 in this credit per year, even if they work with multiple schools. The idea here is to bridge the gap between what schools teach and what employers actually need, while giving companies a financial incentive to invest their time and expertise in training the next generation of workers.

The second credit is aimed at companies that directly train their own employees. When employers pay for their workers to participate in approved training programs—whether through partnerships with schools or registered apprenticeships—they can get back 50 percent of what they spent, up to $5,000 per employee per year. To qualify, employees generally need to work at least 40 hours per week while in training. There's a catch though: if an employer claims the credit but then fires the employee within two years of the training (except for serious misconduct), they have to pay back a portion of the tax credit they received.

Both credits take effect for tax years after the bill is signed into law, assuming it passes Congress and is signed by the president.

Workforce Development Investment Act of 2023

Kuster, Ann M.

Workforce Development Investment Act of 2023This bill allows employers new tax credits for (1) partnering with qualified educational institutions (i.e., any community college, any other institution of higher education, and any area career and technical education school) to improve workforce development and job training for students; and (2) certain job training program expenses.