Senate Bill Provides Tax Credit to Businesses for IT Training

A bipartisan group of senators has introduced a bill that will provide business owners with tax credits to offset the cost of information technology training costs for employees.

The bill would provide a dollar-for-dollar tax credit for the first $1,500 spent, per employee, on IT training. The amount would increase to $2,000 for businesses located in Empowerment Zones and other designated areas.

The demand for skilled IT workers is high and the Information Technology Association of American estimates that there are approximately 425,000 vacancies in information technology positions nationwide. Grant Mydland, director of the Technology Workforce Coalition, said in a recent news release that nearly half of all IT jobs that will be created in 2001 will remain vacant.

One way in which the nation has been dealing with the IT worker shortage is by extending the Immigration and Naturalization Service's H-1B visa program to allow more foreign nationals to relocate to the United States and fill technology positions.

The Senate bill, called the Technology Education and Training Act, is sponsored by Senators Kent Conrad, R-ND, Olympia Snowe, R-ME, Mike DeWine, R-OH, and Harry Reid, D-NV. The bill would include a change in part of the Tax Code that describes the Hope Scholarship Credit and the Lifetime Learning Credit so that these credits would apply to education provided by "a certified commercial information technology training provider."

The bill is expected to go to the House on May 10.

You may like these other stories...

Accountants who specialize in forensic and valuation services point to electronic data analysis, or big data, as the most pressing issue they’ll face in the coming months, according to results of a new survey released...
As complex as federal tax can get, at least you're only dealing with one agency: the IRS. But when you get into state and local sales tax, you're coordinating hundreds of jurisdictions that are constantly changing....
All that was needed on Tuesday was a voice vote for the House of Representatives to pass a bill that would prevent state and local governments from taxing access to the Internet.Now the ball is in the Senate’s court....

Upcoming CPE Webinars

Jul 23
We can’t deny a great divide exists between the expectations and workplace needs of Baby Boomers and Millennials. To create thriving organizational performance, we need to shift the way in which we groom future leaders.
Jul 24
In this presentation Excel expert David Ringstrom, CPA revisits the Excel feature you should be using, but probably aren't. The Table feature offers the ability to both boost the integrity of your spreadsheets, but reduce maintenance as well.
Jul 31
In this session Excel expert David Ringstrom helps beginners get up to speed in Microsoft Excel. However, even experienced Excel users will learn some new tricks, particularly when David discusses under-utilized aspects of Excel.
Aug 5
This webcast will focus on accounting and disclosure policies for various types of consolidations and business combinations.