Skilled Workforce Act
Summary
The Skilled Workforce Act aims to amend the Internal Revenue Code of 1986 by establishing a qualifying workforce training project credit. This credit provides a 30% tax credit for qualified investments in workforce training projects, targeting in-demand industries and skills gaps. The bill allocates $500 million in credits, prioritizing projects that support public secondary schools and rural areas.
Expected Effects
The act is expected to stimulate investment in workforce development programs. It will likely lead to an expansion of training opportunities in high-demand sectors. This could reduce workforce shortages and enhance the skills of the American workforce.
Potential Benefits
- Increased investment in workforce training programs.
- Enhanced skills development in high-demand industries.
- Reduction of workforce shortages and skills gaps.
- Support for public secondary schools and rural areas.
- Potential for higher-paying jobs and improved career opportunities.
Potential Disadvantages
- Limited total credit allocation ($500 million) may restrict the number of projects funded.
- Bureaucratic processes for certification could delay project implementation.
- Potential for inefficient allocation of resources if projects are not carefully selected.
- The definition of 'in-demand jobs' may not accurately reflect future workforce needs.
- Risk of credits benefiting institutions more than individual trainees.
Constitutional Alignment
The Skilled Workforce Act aligns with the Constitution's mandate to "promote the general Welfare" (Preamble). Congress has the power to lay and collect taxes to provide for the general welfare of the United States (Article I, Section 8, Clause 1). The act uses tax credits to incentivize workforce development, which can be seen as a means to promote economic prosperity and improve the lives of citizens.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).