article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Skilled Workforce Enhancement Act of 1998''. SEC. 2. CREDIT FOR EXPENSES FOR TRAINING EMPLOYEES IN HIGHLY SKILLED METALWORKING TRADES. (a) In General.--Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section: ``SEC. 45D. EXPENSES FOR TRAINING EMPLOYEES IN HIGHLY SKILLED METALWORKING TRADES. ``(a) General Rule.--For purposes of section 38, the highly skilled metalworking trades training credit determined under this section is an amount equal to 80 percent of the training expenses paid or incurred by the taxpayer during the training period with respect to each qualified trained employee of the taxpayer. Twenty percent of the credit determined under the preceding sentence shall be taken into account under section 38 for each of the first 5 taxable years after the taxable year in which the training period ends. ``(b) Limitations.-- ``(1) Maximum credit per employee.--The total amount of credit determined under this section with respect to each qualified trained employee for all taxable years shall not exceed $100,000. ``(2) Employer must be small employer.--Training expenses may be taken into account under subsection (a) only if the taxpayer is a small employer for the taxable year in which such expenses are paid or incurred. ``(c) Definitions.--For purposes of this section-- ``(1) Qualified trained employee.-- ``(A) In general.--The term `qualified trained employee' means any employee (or former employee) of the taxpayer if-- ``(i) the employee received at least 8,000 hours of training (including on-the-job training) from the taxpayer (or any predecessor) during the training period as an apprentice in any highly skilled metalworking trade, and ``(ii) the employee is employed by the taxpayer in a journeyman capacity in any highly skilled metalworking trade on a full-time basis throughout at least the 1-year period beginning at the end of such employee's training period. ``(B) Highly skilled metalworking trades.--For purposes of subparagraph (A), the term `highly skilled metalworking trades' means the trades traditionally recognized as such, including precision machinists, die makers, mold makers, and tool and die designers in the tooling and machining industry. ``(2) Training expenses.-- ``(A) In general.--The term `training expenses' means wages paid or incurred to an employee of the taxpayer for services performed in a highly skilled metalworking trade while the employee is an apprentice in such trade. ``(B) Wages.--The term `wages' has the meaning given such term by section 3401(a). ``(3) Training period.--The term `training period' means the period of 4 years beginning on the date that the employee begins employment with the taxpayer as an apprentice in a highly skilled metalworking trade. ``(4) Small employer.-- ``(A) In general.--The term `small employer' means, with respect to any taxable year, any employer who employed an average of 500 or fewer employees on business days during such taxable year. ``(B) Controlled groups.--For purposes of subparagraph (A), all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as 1 employer. ``(d) Coordination With Other Credits.--Wages taken into account under subsection (a) shall not be taken into account in determining the credits under sections 51(a) and 1396(a).''. (b) Credit Made Part of General Business Credit.--Subsection (b) of section 38 of such Code is amended by striking ``plus'' at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ``, plus'', and by adding at the end the following new paragraph: ``(13) the highly skilled metalworking trades training credit determined under section 45D(a).''. (c) Denial of Double Benefit.--Section 280C of such Code is amended by adding at the end the following new subsection: ``(d) Credit for Training Expenses for Employees in Highly Skilled Metalworking Trades.--No deduction shall be allowed for that portion of the expenses otherwise allowable as a deduction for the taxable year which is equal to the amount of the credit determined for such taxable year under section 45D(a).''. (d) Clerical Amendment.--The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: ``Sec. 45D. Expenses for training employees in highly skilled metalworking trades.''. (e) Effective Date.--The amendments made by this section shall apply to expenses paid or incurred after the date of the enactment of this Act in taxable years ending after such date.
summary: Skilled Workforce Enhancement Act of 1998 - Amends the Internal Revenue Code to provide small employers with an income tax credit for certain long-term training of employees in highly skilled metalworking trades.