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H.R. 9438House119th Congress (2025-2027)In Committee

SKILL Act

Sponsored by Sam T. LiccardoRep. Sam T. Liccardo (D-CA)
Introduced June 24, 2026

AI-Generated Summary

Updated June 27, 2026 at 12:51 PM UTC

The SKILL Act adds a new federal tax credit for businesses that support educational and workforce‑training consortia. Eligible employers can claim a credit of up to $2,500 per student who earns a degree, certificate or credential, or $2,500 per graduate they hire full‑time, subject to state‑agency allocation limits. The credit is funded through a national cap of $500 million per year from 2027‑2031 and is part of the general business credit, applying to tax years ending after Dec. 31, 2026.

Key Provisions

  • Creates Section 45BB, a credit equal to the lesser of $2,500 per qualifying student (or hired graduate) and the amount allocated to the employer by a state agency.
  • Defines a “qualifying employer” as one certified by a state agency for contributing cash, equipment, services, curriculum development, internships, apprenticeships, or other support to a qualifying program.
  • Defines a “qualifying program” as a public college, university, community or technical college program coordinated with employers, certified by the state, and designed to be completed in two years or less.
  • State agencies allocate credits competitively, with a national limit of $500 million per calendar year for 2027‑2031 (zero thereafter). Unused allocations can carry over to the next year.
  • Adds the new credit to the list of credits under the general business credit (Section 38).
  • Effective for taxable years ending after December 31, 2026.

Legislative Activity

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1 earlier action
HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

June 24, 2026

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HouseIntro Referral

Introduced in House

June 24, 2026

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

June 24, 2026

Bill Text

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Introduced in HouseIssued June 24, 2026

I

119th CONGRESS

2d Session

H. R. 9438

IN THE HOUSE OF REPRESENTATIVES

June 24, 2026

Mr. Liccardo (for himself and Mr. Panetta) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide a credit for businesses that contribute to educational and workforce training consortia programs.

1.

Short title

This Act may be cited as the Supporting Knowledge through Industry-Led Learning Act or the SKILL Act.

2.

Educational and workforce training consortia credit

(a)

In general

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

45BB.

Educational and workforce training consortia credit

(a)

In general

For purposes of section 38, in the case of any qualifying employer, the educational and workforce training consortia credit determined under this section for any taxable year is an amount equal to the lesser of—

(1)

the sum of—

(A)

$2,500 for each student that earns a degree, certificate, or credential from a qualifying program with respect to which such employer is a qualifying employer during such taxable year, and

(B)

$2,500 for each student that earned such a degree, certificate, or credential during such taxable year or the preceding taxable year and which such employer hired on a full-time basis during such taxable year, or

(2)

the credit amount allocated to such employer by the designated state agency under subsection (d) for the calendar year in which such taxable year begins.

(b)

Qualifying employer

For purposes of this section, the term qualifying employer means, with respect to any qualifying program, any employer that is certified by the designated state agency as making contributions to such qualifying program, including by—

(1)

participating in curricula development or skills assessments,

(2)

providing internships, applied learning opportunities, registered apprenticeship programs, or access to laboratories, or

(3)

donating cash, equipment, or services.

(c)

Qualifying program

For purposes of this section, the term qualifying program means any educational or training program, or registered apprenticeship, which is—

(1)

operated in coordination with qualifying employers,

(2)

certified by the designated state agency,

(3)

offered by a public college or university, or a community or technical college, and

(4)

designed to be completed by participants during a period of 2 years or less.

(d)

Limitation on allocations

The designated state agency shall allocate credit amount to qualifying employers on a competitive basis. The maximum aggregate credit amount that may be allocated by a designated state agency to qualifying employers for any calendar year shall not exceed the limitation amount allocated to such designated state agency by the Secretary for such calendar year under subsection (e).

(e)

National limitation

(1)

In general

The national calendar year credit limitation is—

(A)

$500,000,000 for each of calendar years 2027 through 2031, and

(B)

zero for each calendar year thereafter.

(2)

Allocation of limitation

The national calendar year credit limitation under paragraph (1) for each calendar year shall be allocated by the Secretary among designated state agencies in the same proportion that the population of each State bears to the aggregate population of the States. For purposes of the preceding sentence, population shall be determined in accordance with section 146(j).

(3)

Carryover of unused limitation

If the national calendar year credit limitation allocated to any designated state agency for any calendar year exceeds the aggregate amount allocated by such designated state agency to qualifying employers for such year, the national calendar year credit limitation for the succeeding calendar year shall be increased by the amount of such excess.

(f)

Designated state agency

For purposes of this section, the term designated state agency means any agency authorized by the State to carry out this section with respect to such State.

(g)

Regulations

The Secretary may issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section.

.

(b)

Credit part of general business credit

Section 38(b) of such Code is amended by striking plus at the end of paragraph (40), by striking the period at the end of paragraph (41) and inserting , plus, and by adding at the end the following new paragraph:

(42)

the educational and workforce training consortia credit determined under section 45BB(a).

.

(c)

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. 45BB. Educational and workforce training consortia credit.

.

(d)

Effective date

The amendments made by this section shall apply to taxable years ending after December 31, 2026.