SKILL Act

This bill creates a new federal tax credit for businesses that contribute to educational and workforce training programs run by public colleges, universities, or community and technical colleges in partnership with employers.

Sec. 2, Educational and workforce training consortia credit: The bill adds a new section 45BB to the tax code. For each taxable year, a qualifying employer can claim a credit equal to the lesser of: (1) $2,500 for each student who earns a degree, certificate, or credential from a qualifying program the employer contributed to, plus $2,500 for each such student the employer hires full-time that year or the prior year; or (2) the credit amount allocated to the employer by a designated state agency. A qualifying employer is one certified by the state agency as contributing to a qualifying program through activities like curriculum development, providing internships or apprenticeships, or donating cash, equipment, or services. A qualifying program is an educational or training program or registered apprenticeship that is operated with qualifying employers, certified by the state agency, offered by a public college or community or technical college, and designed to be completed in 2 years or less. The state agency allocates credits competitively. The national credit limit is $500 million per year for calendar years 2027 through 2031, and zero thereafter. The Secretary of the Treasury allocates this limit among states based on population. Unused state limits can carry over to the next year. The credit is part of the general business credit. The changes apply to taxable years ending after December 31, 2026.