# Plain Language Summary: USA Workforce Investment Act

This bill creates a new tax credit that lets individuals reduce their federal income taxes when they donate money to nonprofit organizations that provide job training and apprenticeship programs. Essentially, if you give money to a qualified workforce training organization, you can subtract a portion of that donation directly from the taxes you owe to the federal government.

Here's how it works in practice: If you donate $10,000 to an eligible job training nonprofit, you could potentially claim a tax credit worth up to 25 percent of your total charitable donations for the year, with a maximum credit of $150,000 per person annually. The credit is capped by a national spending limit of $5 billion per year from 2025 through 2028, after which the program expires. The government will track donations on a first-come, first-served basis, so once that $5 billion annual limit is reached, no more credits can be claimed that year. If you can't use your full credit in one year, you can carry it forward to future years for up to five years.

The bill only applies to donations made to specific types of organizations: nonprofits that are officially recognized as workforce development or apprenticeship training providers under federal workforce law. This ensures the money goes to legitimate training programs rather than any nonprofit that claims to do job training. One important limitation is that if your state also offers a tax credit for workforce training donations, your federal credit gets reduced by whatever state credit you receive, preventing you from getting double benefits for the same donation.

USA Workforce Investment Act

Smucker, Lloyd

USA Workforce Investment Act&nbsp;This bill allows a new tax credit for contributions to workforce development and apprenticeship training programs.