Bill · S. 3489· Senate(119-S-3489)
Investing in American Workers Act
- Introduced
- 12/16/2025
- Last activity
- 12/16/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Mark Warner
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
This bill, known as the Investing in American Workers Act, creates a new tax credit for employers who provide worker training. The credit is generally worth 20 percent of the excess qualified training expenditures for the taxable year over the average of the adjusted qualified training expenditures for the 3 preceding taxable years. Qualified training expenditures only apply to non-highly compensated employees and exclude meals, lodging, transportation, or other incidental services. The training must result in a recognized postsecondary credential through specific programs like registered apprenticeships, community colleges, or labor organizations. Additionally, qualified small businesses and qualified tax-exempt organizations can elect to apply a portion of the credit against their payroll taxes up to $250,000. The amendments made by this section apply to taxable years beginning after the date of the enactment of this Act.
Yes· 3 of 13
Would business owners be better off under this?+5
Business owners benefit from tax credits for worker training and simplified filing procedures for small businesses.
Does this cut taxes for small businesses?+5
The bill allows qualified small businesses to apply a portion of their training tax credit against payroll taxes up to $250,000.
Does this make it easier to run a small business?+5
Provides specialized payroll tax credit options and simplified filing methods for small businesses.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Encouragement of Worker Training: Section 2 adds SEC. 45BB, which provides a tax credit for employers who invest in training for their workers. This could encourage employers to provide more training opportunities that lead to recognized postsecondary credentials for employees.
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Support for Small Businesses and Tax-Exempt Organizations: Section 2 adds SEC. 45BB(e), allowing qualified small businesses and qualified tax-exempt organizations to elect to apply up to $250,000 of their credit against payroll taxes. This helps smaller entities and organizations that might not have large income tax liabilities benefit from the credit.
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Simplified Filing for Small Businesses: Section 2 states in subsection (d) that the Secretary of the Treasury, in consultation with the Administrator of the Small Business Administration, shall provide a simplified method of filing returns for employers with less than $5,000,000 in annual gross receipts. This may reduce the administrative burden for small business owners.
Potential Negative Impacts for People
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Exclusion of Incidental Expenses: Section 2 adds SEC. 45BB(b)(1), which explicitly states that qualified training expenditures shall not include any amounts paid for meals, lodging, transportation, or other services incidental to qualified training. Employees participating in training programs will not receive employer-provided training expense coverage for these specific daily living and travel costs under this tax credit.
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Reduction in Deductions: Section 2 adds section 280C(i), which dictates that no deduction shall be allowed for the portion of expenses taken into account to determine the SEC. 45BB credit. Businesses cannot double-dip by taking both a full business deduction and claiming this tax credit for the exact same training expenses.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Business Owners+5Good For Low Income Households+4Good For Union Workers+4Good For Middle Aged+3Good For Middle Class Households+3Good For Students+3Good For Young Adults+3
- Economy And Finance
- Improves Small Business Support+5Reduces Small Business Taxes+5Increases Job Creation+4Improves Economic Growth+3Improves Union Protections+3
- Social Issues And Justice
- Improves Poverty Reduction+2
- 12/16/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.