US Lawmaker Proposes Tax Credit For Tech Training

by Glen Shapiro, LawAndTax-News.com, New York

25 May 2004

Representative Jerry Weller (R-Ill) has put forward proposals for a technology training tax credit for employers, and both employed and unemployed tech professionals, in a bid to slow the trend towards outsourcing of US technology jobs overseas.

Speaking to reporters last week with regard to his Technology Retraining and Investment Now Act (TRAIN), Weller explained that:

"Investment in computer education and information technology skills training is the best long-term solution to meet the shortage of skilled IT workers and keep technology-based jobs here in the United States."

He went on to add that:

"TRAIN is designed to help either the worker or the employer recover the cost of IT and computer skills training. If a worker seeking the opportunity for higher paying technology-based jobs invests in tuition to learn computer and information technology skills, TRAIN will give them a tax credit to reduce the cost."

According to the Illinois Republican, the legislation provides a tax credit equal to 50% of the information and communications technology training program expenses incurred by an individual, up to an $8,000 cut-off point, which may be increased to $10,000 in certain circumstances.

Although Weller acknowledged that his legislation stands little chance of passing Congress on its own, he revealed that he hopes to attach it as an amendment to a pending bill.

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