Tax break for employer training—but no guarantee workers benefit
H.R. 6752 — Investing in American Workers Act · Filed by Raja Krishnamoorthi (D-IL) · Introduced Dec 16, 2025 · Referred to committee
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What it does
This bill creates a new federal tax credit for employers who spend money training their non-highly-compensated workers in recognized apprenticeships, certifications, or degree programs. Employers get a 20% tax credit on training spending above their 3-year average; small businesses under $5 million in revenue can elect to use the credit against payroll taxes instead. The bill requires the Treasury and Labor departments to issue guidance on what counts as a recognized credential.
Why we flagged it
The bill's core mechanism is a targeted tax incentive—a 20% credit on incremental training spending—designed to encourage private employers to invest in workforce development. It is fundamentally a tax expenditure (foregone revenue) benefiting employers, not a direct public program or worker protection.
What the text implies
- The credit only applies to training spending ABOVE a 3-year average, which may incentivize employers to front-load training in early years or manipulate baseline spending to maximize credits.
- No requirement that employers pass training benefits to workers or retain trained employees; employers could claim credits and then lay off workers or fail to promote them.
The full analysis lists 5 implications of this text.
Who stands to gain
employers with payroll under $5 million; mid-sized corporations with training budgets; payroll processing and HR software vendors