HR 9461 — USA Workforce Investment Act

CHANGES IN EXISTING LAW MADE BY THE BILL,
 AS REPORTED

 A. Changes in Existing Law Proposed by the Bill, as Reported

 In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows.

 Changes in Existing Law Made by the Bill, as Reported

 In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

 INTERNAL REVENUE CODE OF 1986

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Subtitle A--Income Taxes

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CHAPTER 1--NORMAL TAXES AND SURTAXES

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Subchapter A--DETERMINATION OF TAX LIABILITY

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PART IV--CREDITS AGAINST TAX

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 Subpart A--NONREFUNDABLE PERSONAL CREDITS

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Sec. 25F. Contributions to workforce development and apprenticeship 
 training programs.

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SEC. 25. INTEREST ON CERTAIN HOME MORTGAGES

 (a) Allowance of credit.--
 (1) In general.--There shall be allowed as a credit 
 against the tax imposed by this chapter for the taxable 
 year an amount equal to the product of--
 (A) the certificate credit rate, and
 (B) the interest paid or accrued by the 
 taxpayer during the taxable year on the 
 remaining principal of the certified 
 indebtedness amount.
 (2) Limitation where credit rate exceeds 20 
 percent.--
 (A) In general.--If the certificate credit 
 rate exceeds 20 percent, the amount of the 
 credit allowed to the taxpayer under paragraph 
 (1) for any taxable year shall not exceed 
 $2,000.
 (B) Special rule where 2 or more persons hold 
 interests in residence.--If 2 or more persons 
 hold interests in any residence, the limitation 
 of subparagraph (A) shall be allocated among 
 such persons in proportion to their respective 
 interests in the residence.
 (b) Certificate credit rate; certified indebtedness amount.--
For purposes of this section--
 (1) Certificate credit rate.--The term ``certificate 
 credit rate'' means the rate of the credit allowable by 
 this section which is specified in the mortgage credit 
 certificate.
 (2) Certified indebtedness amount.--The term 
 ``certified indebtedness amount'' means the amount of 
 indebtedness which is--
 (A) incurred by the taxpayer--
 (i) to acquire the principal 
 residence of the taxpayer,
 (ii) as a qualified home improvement 
 loan (as defined in section 143(k)(4)) 
 with respect to such residence, or
 (iii) as a qualified rehabilitation 
 loan (as defined in section 143(k)(5)) 
 with respect to such residence, and
 (B) specified in the mortgage credit 
 certificate.
 (c) Mortgage credit certificate; qualified mortgage credit 
certificate program.--For purposes of this section--
 (1) Mortgage credit certificate.--The term ``mortgage 
 credit certificate'' means any certificate which--
 (A) is issued under a qualified mortgage 
 credit certificate program by the State or 
 political subdivision having the authority to 
 issue a qualified mortgage bond to provide 
 financing on the principal residence of the 
 taxpayer,
 (B) is issued to the taxpayer in connection 
 with the acquisition, qualified rehabilitation, 
 or qualified home improvement of the taxpayer's 
 principal residence,
 (C) specifies--
 (i) the certificate credit rate, and
 (ii) the certified indebtedness 
 amount, and
 (D) is in such form as the Secretary may 
 prescribe.
 (2) Qualified mortgage credit certificate program.--
 (A) In general.--The term ``qualified 
 mortgage credit certificate program'' means any 
 program--
 (i) which is established by a State 
 or political subdivision thereof for 
 any calendar year for which it is 
 authorized to issue qualified mortgage 
 bonds,
 (ii) under which the issuing 
 authority elects (in such manner and 
 form as the Secretary may prescribe) 
 not to issue an amount of private 
 activity bonds which it may otherwise 
 issue during such calendar year under 
 section 146,
 (iii) under which the indebtedness 
 certified by mortgage credit 
 certificates meets the requirements of 
 the following subsections of section 
 143 (as modified by subparagraph (B) of 
 this paragraph):
 (I) subsection (c) (relating 
 to residence requirements),
 (II) subsection (d) (relating 
 to 3-year requirement),
 (III) subsection (e) 
 (relating to purchase price 
 requirement),
 (IV) subsection (f) (relating 
 to income requirements),
 (V) subsection (h) (relating 
 to portion of loans required to 
 be placed in targeted areas), 
 and
 (VI) paragraph (1) of 
 subsection (i) (relating to 
 other requirements),
 (iv) under which no mortgage credit 
 certificate may be issued with respect 
 to any residence any of the financing 
 of which is provided from the proceeds 
 of a qualified mortgage bond or a 
 qualified veterans' mortgage bond,
 (v) except to the extent provided in 
 regulations, which is not limited to 
 indebtedness incurred from particular 
 lenders,
 (vi) except to the extent provided in 
 regulations, which provides that a 
 mortgage credit certificate is not 
 transferrable, and
 (vii) if the issuing authority 
 allocates a block of mortgage credit 
 certificates for use in connection with 
 a particular development, which 
 requires the developer to furnish to 
 the issuing authority and the homebuyer 
 a certificate that the price for the 
 residence is no higher than it would be 
 without the use of a mortgage credit 
 certificate.
 Under regulations, rules similar to the rules 
 of subparagraphs (B) and (C) of section 
 143(a)(2) shall apply to the requirements of 
 this subparagraph.
 (B) Modifications of section 143.--Under 
 regulations prescribed by the Secretary, in 
 applying section 143 for purposes of subclauses 
 (II), (IV), and (V) of subparagraph (A)(iii)--
 (i) each qualified mortgage 
 certificate credit program shall be 
 treated as a separate issue,
 (ii) the product determined by 
 multiplying--
 (I) the certified 
 indebtedness amount of each 
 mortgage credit certificate 
 issued under such program, by
 (II) the certificate credit 
 rate specified in such 
 certificate,
 shall be treated as proceeds of such issue and 
 the sum of such products shall be treated as 
 the total proceeds of such issue, and
 (iii) paragraph (1) of section 143(d) 
 shall be applied by substituting ``100 
 percent'' for ``95 percent or more''.
 Clause (iii) shall not apply if the issuing 
 authority submits a plan to the Secretary for 
 administering the 95-percent requirement of 
 section 143(d)(1) and the Secretary is 
 satisfied that such requirement will be met 
 under such plan.
 (d) Determination of certificate credit rate.--For purposes 
of this section--
 (1) In general.--The certificate credit rate 
 specified in any mortgage credit certificate shall not 
 be less than 10 percent or more than 50 percent.
 (2) Aggregate limit on certificate credit rates.--
 (A) In general.--In the case of each 
 qualified mortgage credit certificate program, 
 the sum of the products determined by 
 multiplying--
 (i) the certified indebtedness amount 
 of each mortgage credit certificate 
 issued under such program, by
 (ii) the certificate credit rate with 
 respect to such certificate,
 shall not exceed 25 percent of the nonissued 
 bond amount.
 (B) Nonissued bond amount.--For purposes of 
 subparagraph (A), the term ``nonissued bond 
 amount'' means, with respect to any qualified 
 mortgage credit certificate program, the amount 
 of qualified mortgage bonds which the issuing 
 authority is otherwise authorized to issue and 
 elects not to issue under subsection 
 (c)(2)(A)(ii).
 (e) Special rules and definitions.--For purposes of this 
section--
 (1) Carryforward of unused credit.--
 (A) In general.--If the credit allowable 
 under subsection (a) for any taxable year 
 exceeds the applicable tax limit for such 
 taxable year, such excess shall be a carryover 
 to each of the 3 succeeding taxable years and, 
 subject to the limitations of subparagraph (B), 
 shall be added to the credit allowable by 
 subsection (a) for such succeeding taxable 
 year.
 (B) Limitation.--The amount of the unused 
 credit which may be taken into account under 
 subparagraph (A) for any taxable year shall not 
 exceed the amount (if any) by which the 
 applicable tax limit for such taxable year 
 exceeds the sum of--
 (i) the credit allowable under 
 subsection (a) for such taxable year 
 determined without regard to this 
 paragraph, and
 (ii) the amounts which, by reason of 
 this paragraph, are carried to such 
 taxable year and are attributable to 
 taxable years before the unused credit 
 year.
 (C) Applicable tax limit.--For purposes of 
 this paragraph, the term ``applicable tax 
 limit'' means the limitation imposed by section 
 26(a) for the taxable year reduced by the sum 
 of the credits allowable under this subpart 
 (other than this section and sections 23 [and 
 25D], 25D, and 25F).
 (2) Indebtedness not treated as certified where 
 certain requirements not in fact met.--Subsection (a) 
 shall not apply to any indebtedness if all the 
 requirements of subsection (c)(1), (d), (e), (f), and 
 (i) of section 143 and clauses (iv), (v), and (vii) of 
 subsection (c)(2)(A), were not in fact met with respect 
 to such indebtedness. Except to the extent provided in 
 regulations, the requirements described in the 
 preceding sentence shall be treated as met if there is 
 a certification, under penalty of perjury, that such 
 requirements are met.
 (3) Period for which certificate in effect.--
 (A) In general.--Except as provided in 
 subparagraph (B), a mortgage credit certificate 
 shall be treated as in effect with respect to 
 interest attributable to the period--
 (i) beginning on the date such 
 certificate is issued, and
 (ii) ending on the earlier of the 
 date on which--
 (I) the certificate is 
 revoked by the issuing 
 authority, or
 (II) the residence to which 
 such certificate relates ceases 
 to be the principal residence 
 of the individual to whom the 
 certificate relates.
 (B) Certificate invalid unless indebtedness 
 incurred within certain period.--A certificate 
 shall not apply to any indebtedness which is 
 incurred after the close of the second calendar 
 year following the calendar year for which the 
 issuing authority made the applicable election 
 under subsection (c)(2)(A)(ii).
 (C) Notice to Secretary when certificate 
 revoked.--Any issuing authority which revokes 
 any mortgage credit certificate shall notify 
 the Secretary of such revocation at such time 
 and in such manner as the Secretary shall 
 prescribe by regulations.
 (4) Reissuance of mortgage credit certificates.--The 
 Secretary may prescribe regulations which allow the 
 administrator of a mortgage credit certificate program 
 to reissue a mortgage credit certificate specifying a 
 certified mortgage indebtedness that replaces the 
 outstanding balance of the certified mortgage 
 indebtedness specified on the original certificate to 
 any taxpayer to whom the original certificate was 
 issued, under such terms and conditions as the 
 Secretary determines are necessary to ensure that the 
 amount of the credit allowable under subsection (a) 
 with respect to such reissued certificate is equal to 
 or less than the amount of credit which would be 
 allowable under subsection (a) with respect to the 
 original certificate for any taxable year ending after 
 such reissuance.
 (5) Public notice that certificates will be issued.--
 At least 90 days before any mortgage credit certificate 
 is to be issued after a qualified mortgage credit 
 certificate program, the issuing authority shall 
 provide reasonable public notice of--
 (A) the eligibility requirements for such 
 certificate,
 (B) the methods by which such certificates 
 are to be issued, and
 (C) such other information as the Secretary 
 may require.
 (6) Interest paid or accrued to related persons.--No 
 credit shall be allowed under subsection (a) for any 
 interest paid or accrued to a person who is a related 
 person to the taxpayer (within the meaning of section 
 144(a)(3)(A)).
 (7) Principal residence.--The term ``principal 
 residence'' has the same meaning as when used in 
 section 121.
 (8) Qualified rehabilitation and home improvement.--
 (A) Qualified rehabilitation.--The term 
 ``qualified rehabilitation'' has the meaning 
 given such term by section 143(k)(5)(B).
 (B) Qualified home improvement.--The term 
 ``qualified home improvement'' means an 
 alteration, repair, or improvement described in 
 section 143(k)(4).
 (9) Qualified mortgage bond.--The term ``qualified 
 mortgage bond'' has the meaning given such term by 
 section 143(a)(1).
 (10) Manufactured housing.--For purposes of this 
 section, the term ``single family residence'' includes 
 any manufactured home which has a minimum of 400 square 
 feet of living space and a minimum width in excess of 
 102 inches and which is of a kind customarily used at a 
 fixed location. Nothing in the preceding sentence shall 
 be construed as providing that such a home will be 
 taken into account in making determinations under 
 section 143.
 (f) Reduction in aggregate amount of qualified mortgage bonds 
which may be issued where certain requirements not met.--
 (1) In general.--If for any calendar year any 
 mortgage credit certificate program which satisfies 
 procedural requirements with respect to volume 
 limitations prescribed by the Secretary fails to meet 
 the requirements of paragraph (2) of subsection (d), 
 such requirements shall be treated as satisfied with 
 respect to any certified indebtedness of such program, 
 but the applicable State ceiling under subsection (d) 
 of section 146 for the State in which such program 
 operates shall be reduced by 1.25 times the correction 
 amount with respect to such failure. Such reduction 
 shall be applied to such State ceiling for the calendar 
 year following the calendar year in which the Secretary 
 determines the correction amount with respect to such 
 failure.
 (2) Correction amount.--
 (A) In general.--For purposes of paragraph 
 (1), the term ``correction amount'' means an 
 amount equal to the excess credit amount 
 divided by 0.25.
 (B) Excess credit amount.--
 (i) In general.--For purposes of 
 subparagraph (A)(ii), the term ``excess 
 credit amount'' means the excess of--
 (I) the credit amount for any 
 mortgage credit certificate 
 program, over
 (II) the amount which would 
 have been the credit amount for 
 such program had such program 
 met the requirements of 
 paragraph (2) of subsection 
 (d).
 (ii) Credit amount.--For purposes of 
 clause (i), the term ``credit amount'' 
 means the sum of the products 
 determined under clauses (i) and (ii) 
 of subsection (d)(2)(A).
 (3) Special rule for States having constitutional 
 home rule cities.--In the case of a State having one or 
 more constitutional home rule cities (within the 
 meaning of section 146(d)(3)(C)), the reduction in the 
 State ceiling by reason of paragraph (1) shall be 
 allocated to the constitutional home rule city, or to 
 the portion of the State not within such city, 
 whichever caused the reduction.
 (4) Exception where certification program.--The 
 provisions of this subsection shall not apply in any 
 case in which there is a certification program which is 
 designed to ensure that the requirements of this 
 section are met and which meets such requirements as 
 the Secretary may by regulations prescribe.
 (5) Waiver.--The Secretary may waive the application 
 of paragraph (1) in any case in which he determines 
 that the failure is due to reasonable cause.
 (g) Reporting requirements.--Each person who makes a loan 
which is a certified indebtedness amount under any mortgage 
credit certificate shall file a report with the Secretary 
containing--
 (1) the name, address, and social security account 
 number of the individual to which the certificate was 
 issued,
 (2) the certificate's issuer, date of issue, 
 certified indebtedness amount, and certificate credit 
 rate, and
 (3) such other information as the Secretary may 
 require by regulations.
Each person who issues a mortgage credit certificate shall file 
a report showing such information as the Secretary shall by 
regulations prescribe. Any such report shall be filed at such 
time and in such manner as the Secretary may require by 
regulations.
 (h) Regulations; contracts.--
 (1) Regulations.--The Secretary shall prescribe such 
 regulations as may be necessary to carry out the 
 purposes of this section, including regulations which 
 may require recipients of mortgage credit certificates 
 to pay a reasonable processing fee to defray the 
 expenses incurred in administering the program.
 (2) Contracts.--The Secretary is authorized to enter 
 into contracts with any person to provide services in 
 connection with the administration of this section.
 (i) Recapture of portion of Federal subsidy from use of 
mortgage credit certificates.--For provisions increasing the 
tax imposed by this chapter to recapture a portion of the 
Federal subsidy from the use of mortgage credit certificates, 
see section 143(m).

SEC. 25F. CONTRIBUTIONS TO WORKFORCE DEVELOPMENT AND APPRENTICESHIP 
 TRAINING PROGRAMS.

 (a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this 
chapter for the taxable year an amount equal to the aggregate 
amount of qualified contributions made by the taxpayer during 
the year.
 (b) Limitations.--
 (1) In general.--The credit allowed under subsection 
 (a) to any taxpayer for any taxable year shall not 
 exceed an amount equal to the lesser of--
 (A) 25 percent of the sum of the amounts 
 described in paragraphs (1) and (2) of section 
 26(a) for such taxable year, or
 (B) $150,000.
 (2) Allocation of volume cap.--The credit allowed 
 under subsection (a) to any taxpayer for any taxable 
 year shall not exceed the amount of the volume cap 
 allocated by the Secretary to such taxpayer under 
 subsection (f) with respect to qualified contributions 
 made by the taxpayer during the taxable year.
 (3) Reduction based on state credit.--The amount 
 allowed as a credit under subsection (a) for a taxable 
 year shall be reduced by the amount allowed as a credit 
 on any State tax return of the taxpayer for qualified 
 contributions made by the taxpayer during the taxable 
 year.
 (c) Definitions.--For purposes of this section--
 (1) Qualified contribution.--The term ``qualified 
 contribution'' means a charitable contribution (as 
 defined by section 170(c)) to a workforce development 
 or apprenticeship training organization in the form of 
 cash or marketable securities if such contribution is 
 designated by such organization to be used only for the 
 purpose of providing workforce development or 
 apprenticeship training programs.
 (2) Workforce development or apprenticeship training 
 organization.--The term ``workforce development or 
 apprenticeship training organization'' means any 
 organization which--
 (A) is described in section 501(c)(3), is 
 exempt from tax under section 501(a), and is 
 not a private foundation, and
 (B) is included on a list of providers 
 prepared under subsection (d) of section 122 of 
 the Workforce Innovation and Opportunity Act 
 (29 U.S.C. 3152) by reason of having been 
 determined to be eligible to offer a program 
 under such section.
 (3) Workforce development or apprenticeship training 
 program.--The term ``workforce development or 
 apprenticeship training program'' means a program to 
 provide training services (within the meaning of 
 section 134(c)(3) of the Workforce Innovation and 
 Opportunity Act (29 U.S.C. 3174(c)(3))).
 (d) Denial of Double Benefit.--Any qualified contribution for 
which a credit is allowed under this section shall not be taken 
into account as a charitable contribution for purposes of 
section 170.
 (e) Carryforward of Unused Credit.--
 (1) In general.--If the credit allowable under 
 subsection (a) for any taxable year exceeds the 
 limitation imposed by section 26(a) for such taxable 
 year reduced by the sum of the credits allowable under 
 this subpart (other than this section, section 23, and 
 section 25D), such excess shall be carried to the 
 succeeding taxable year and added to the credit 
 allowable under subsection (a) for such taxable year.
 (2) Limitation.--No credit may be carried forward 
 under this subsection to any taxable year following the 
 fifth taxable year after the taxable year in which the 
 credit arose. For purposes of the preceding sentence, 
 credits shall be treated as used on a first-in first-
 out basis.
 (f) Volume Cap.--
 (1) In general.--The volume cap applicable under this 
 section shall be $5,000,000,000 for each of calendar 
 years 2025 through 2028, and zero for calendar years 
 thereafter. Such amount shall be allocated by the 
 Secretary as provided in paragraph (2) to taxpayers 
 with respect to qualified contributions made by such 
 taxpayers, except that 10 percent of such amount shall 
 be divided evenly among the States, and shall be 
 available with respect to individuals residing in such 
 States.
 (2) First-come, first-serve.--For purposes of 
 applying the volume cap under this section, such volume 
 cap for any calendar year shall be allocated by the 
 Secretary on a first-come, first-serve basis, as 
 determined based on the time (during such calendar 
 year) at which the taxpayer made the qualified 
 contribution with respect to which the allocation is 
 made. The Secretary shall not make any allocation of 
 volume cap for any calendar year after December 31 of 
 such calendar year.
 (3) Real-time information.--For purposes of this 
 section, the Secretary shall develop a system to track 
 the amount of qualified contributions made during the 
 calendar year for which a credit may be claimed under 
 this section, with such information to be updated in 
 real time.
 (4) Annual increases.--
 (A) In general.--In the case of the calendar 
 year after a high use calendar year, the dollar 
 amount otherwise in effect under subsection (a) 
 for such calendar year shall be equal to 105 
 percent of the dollar amount in effect for such 
 high use calendar year.
 (B) High use calendar year.--For purposes of 
 this subsection, the term ``high use calendar 
 year'' means any calendar year for which 90 
 percent or more of the volume cap in effect for 
 such calendar year under subsection (a) is 
 allocated to taxpayers.
 (C) Prevention of decreases in annual volume 
 cap.--The volume cap in effect under subsection 
 (a) for any calendar year shall not be less 
 than the volume cap in effect under such 
 subsection for the preceding calendar year.
 (D) Publication of annual volume cap.--The 
 Secretary shall make publicly available the 
 dollar amount of the volume cap in effect under 
 subsection (a) for each calendar year.
 (5) States.--For purposes of this subsection, the 
 term ``State'' includes the District of Columbia.

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 VII. DISSENTING VIEWS

 Committee Democrats believe that if the Federal government 
wants to fund workforce training and apprenticeship 
initiatives, it should do that directly, and not through the 
byzantine approach taken by the USA Workforce Investment Act 
(H.R. 9461). Rather than simply providing support for worthy 
workforce training initiatives, H.R. 9461 provides a 
``backdoor'' funding mechanism, wherein the Federal government 
provides a 100% tax credit for donations made to such 
organizations, on a first-come-first-serve basis. This 
structure both relinquishes any analysis of the appropriateness 
of directing government funds to that particular training 
program, and allows taxpayers to profit from the donation, at 
the expense of the American taxpayer.
 First, the bill's list of eligible workforce training 
programs is both over-inclusive and under-inclusive: it 
excludes many high-road training partnerships, including unions 
that organize their training programs as 501(c)(5) 
organizations, while also funding low-road training.
 Notwithstanding Republican protestations as to the matter, 
by referencing Department of Labor-administered Workforce 
Innovation and Opportunity Act's (WIOA)-eligible training 
programs, the bill does not preclude low-quality training 
programs from eligibility. Although Eligible Training Provider 
Lists (ETPL) were designed to be a filter of bad programs, they 
do little to no filtering. The Department of Labor Inspector 
General audited a sample of participant data in 2020 and said 
it was not ``accurate, valid and reliable.''\1\ WIOA does not 
set any requirements or tests to measure the effectiveness of 
these programs. States are required to set goals for the 
training programs' WIOA funds, but the criteria are often so 
weak or poorly enforced that schools that fail to help a 
majority of students get a job, according to Federal data, can 
continue to enroll new ones year after year.\2\ Thus, reliance 
solely on the ETPL as a measure of worthiness of government 
funding is a surefire way to provide funding for poor-
performing programs.
---------------------------------------------------------------------------
 \1\https://www.oig.dol.gov/public/reports/oa/2020/03-20-002-03-
391.pdf.
 \2\https://www.washingtonpost.com/education/2023/02/25/career-
training-companies-scoop-up-federal-funds-with-little-oversight/ 20 
LMRA, sec. 302(c)(6).
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 Conversely, the bill's structure de facto excludes many 
union training programs from benefiting from this provision. 
Important trade unions, such as the North American Building 
Trades Union (NABTU) and the Building Trades, would be largely 
excluded from benefitting from any bill that turned on 
charitable contributions to these training programs. As NABTU 
counsel explained to Committee staff, this is because the bill 
relies on funding payments that are currently prohibited under 
section 302 of the Taft-Hartley Labor Management Relations Act 
(LMRA), 29 U.S.C. Sec. 186, except under very limited 
circumstances. Under the LMRA, payments into trust funds on 
which union-appointed trustees sit are allowed only if the 
payment includes ``money or other things of value paid by an 
employer to a trust fund established by . . . [union] 
representatives for the purpose of . . . defraying costs of 
apprenticeship or other training programs''\3\ and various 
conditions are met, including that there be a written agreement 
between the parties detailing the basis on which payments are 
to be made. Generally, a person who violates the LMRA may be 
guilty of a felony and may be subject to a fine of up to 
$15,000, or imprisoned up to five years, or both. The liability 
exposure of the LMRA and the administrative hassle of complying 
with these requirements deters many non-participating employers 
from making these charitable donations, particularly employers 
with employees which unions represent, or seek to represent.
---------------------------------------------------------------------------
 \3\LMRA, sec. 302(c)(6).
---------------------------------------------------------------------------
 Last, but not least, the bill only applies to section 
501(c)(3) organizations, and thus excludes entities such as 
those described under section 501(c)(5). The bill only allows 
taxpayers to take the deduction when they contribute to an 
entity that is described in section 501(c)(3). Therefore, the 
bill excludes entities described in section 501(c)(5), such as 
United Steelworkers, which have provided effective, high-
qualify workforce training programs for a long time.
 While the above-described significant concerns about the 
scope of the workforce training programs eligible to receive 
funding per the terms of the bill, Democrats additionally 
object to the byzantine means of using the tax code to provide 
these benefits.
 This bill generally tracks the basic structure in the 
Educational Choice for Children Act (ECCA) (H.R. 9462). It is 
structured as Federal funding for, in this case, workforce 
training programs, but via the mechanism of an individual tax 
credit. Presumably, the sponsors of the ECCA chose this method 
due to Constitutional restrictions on government funding of 
parochial schools. Such limitations, however, are inapplicable 
in the case of workforce training programs, and so it is 
unclear why bill sponsors would adopt such an obviously flawed 
funding mechanism, when direct funding is an option.
 The problem with such a funding-via-tax-credit structure 
are manifest and obvious. It leaves funding to the whims of 
taxpayers. This means the Federal government is responsible for 
giving funding to random programs that taxpayers decide they 
want to fund, no matter what kind of skills training they are 
promoting. The bill would allocate credits on a ``First-Come-
First-Serve'', benefitting donors who stay up past midnight on 
January 1st to make donations, to the detriment of those who 
donated later in the calendar year. And we have no doubt that 
donors will do that, because the bill makes only the faintest 
effort at combating the ``double-dipping'' prospect of 
taxpayers receiving more than $1 in benefit off of $1 in 
donations. While the bill disallows a state *credit* from 
providing a double benefit, it says nothing about state 
deductions (and as pointed out in markup, nearly all states 
with a state income tax offer a state-level charitable 
deduction), and furthermore, it allows taxpayers to donate 
appreciated securities, receiving full cash value (in the form 
of tax credits) without paying capital gains tax. Thus, were 
this bill to become law, doubtless taxpayers would stay up past 
midnight on January 1st just to unload ``donations'' of 
appreciated stock to whatever workforce training program was 
savvy enough to seek out those donations, without any regard to 
the training program's worthiness.
 For these reasons, Committee Democrats dissent.

 Richard E. Neal,
 Ranking Member.