WASHINGTON – Today, U.S. Sens. Mark R. Warner (D-VA) and Chairman of the Senate Banking, Housing, and Urban Affairs Committee Sherrod Brown (D-OH) encouraged the U.S. Securities and Exchange Commission (SEC) to continue focusing on improving human capital disclosures and on reforms that would ensure shareholders can properly evaluate public companies’ human capital practices and investments in their workers. The letter urges the SEC to implement the recommendations included in a petition from the Working Group on Human Capital Accounting Disclosure, which seeks to level the playing field between investments in workers and investments in physical equipment.

“As the Commission considers improvements to Regulation S-K and human capital disclosure, the working group’s recommendations would go a long way in ensuring shareholders can properly evaluate public companies’ human capital practices and investments in their workers. Strengthening human capital disclosure is needed to reflect the modern economy, where public firms are increasingly deriving their value from intangible assets,” the senators wrote. 

They continued, “Human capital does not receive the same treatment as even R&D in this respect, placing spending on workers at a further disadvantage. Unlike R&D, human capital spending is included as part of a company’s administrative expenses and not as a stand-alone item. As a result, investors are not given the information to differentiate between a firm with poor human capital management and one that is making a concerted effort to invest in its workforce to increase worker capability and performance.”

On June 7, 2022 the Working Group on Human Capital Accounting Disclosures petitioned the Commission to improve human capital disclosures including the following recommendations: 

1. Requiring managers to disclose, in the Management’s Discussion & Analysis section of Form 10-K, what portion of investments in workers should be considered as an investment in the firm’s future growth to allow investors to distinguish between labor expenses and value-adding investments, like training or upskilling;
2. Treating workforce costs similar to investments in R&D by ensuring workforce costs are disclosed; and
3. Disaggregating labor costs to allow investors to clearly understand employees’ job function, expected value creation, and contributions to their company.

Since 2018, Sen. Warner has stressed the importance of updating human capital disclosure requirements to reflect the priorities of modern companies. Sen. Warner has long focused on prioritizing better reporting on human capital management and on making sure that companies are not discouraged – based on accounting or reporting rules – from investing in their workers. In a May 2020 letter to the U.S. Securities and Exchange Commission (SEC), Sen. Warner and Rep. Cindy Axne (D-IA) urged the SEC to require that human capital management information be made publicly available in a timely and accurate manner to help determine whether a company will be successfully able to weather risks following the COVID-19 crisis.

In May 2021, Sen. Warner and Rep. Axne reintroduced the Workforce Investment Disclosure Act to require public companies to disclose crucial workforce management metrics, including investments made in skills training, workforce safety, and employee retention. Sen. Warner also leads legislation, the Investing in American Workers Act, modeled on the R&D tax credit to further incentivize investments in companies’ most important asset, their workers.

A copy of the letter is available here and below.

Dear Chairman Gensler,

We are writing to urge the Securities and Exchange Commission (SEC) to adopt the recommendations included in the Working Group on Human Capital Accounting Disclosure’s petition to the Commission on June 7, 2022. As the Commission considers improvements to Regulation S-K and human capital disclosure, the working group’s recommendations would go a long way in ensuring shareholders can properly evaluate public companies’ human capital practices and investments in their workers. Strengthening human capital disclosure is needed to reflect the modern economy, where public firms are increasingly deriving their value from intangible assets.

We applaud the SEC for working on improvements to human capital disclosures as part of its regulatory agenda. In 2018, Senator Warner urged the Commission to focus on the treatment of human capital and noted the significant discrepancy between the treatment of physical investments and spending on human capital and research and development (R&D). A physical investment can be listed on a balance sheet and is often capitalized, whereas human capital and R&D investments are expensed. R&D is disclosed on its own expenditure line – reflective of its importance for firms’ valuation, competitiveness, and long-term performance – so that investors can assess company expenditures on R&D separately from other firm costs.

Human capital does not receive the same treatment as even R&D in this respect, placing spending on workers at a further disadvantage. Unlike R&D, human capital spending is included as part of a company’s administrative expenses and not as a stand-alone item. As a result, investors are not given the information to differentiate between a firm with poor human capital management and one that is making a concerted effort to invest in its workforce to increase worker capability and performance. The strengthened human capital disclosure must be focused on the discrepancy laid out above.

To do so, we respectfully urge the SEC to adopt the Working Group’s recommendations to improve human capital disclosures. Those recommendations include:

1. Requiring managers to disclose, in the Management’s Discussion & Analysis section of Form 10-K, what portion of investments in workers should be considered as an investment in the firm’s future growth to allow investors to distinguish between labor expenses and value-adding investments, like training or upskilling;
2. Treating workforce costs similar to investments in R&D by ensuring workforce costs are disclosed; and
3. Disaggregating labor costs to allow investors to clearly understand employees’ job function, expected value creation, and contributions to their company.

These quantifiable and comparable disclosures would significantly improve investors’ ability to understand firms’ human capital practices. While there are tradeoffs and costs associated with mandating additional disclosures, firms already collect most of this information for tax reporting. In addition, few could argue that these disclosures would be unimportant for investors, particularly at a time when public companies’ value is increasingly determined by intangible assets like its workforce.

We look forward to continued engagement with the SEC on this critical issue, and appreciate your consideration of these recommendations as the Commission moves forward with updating Regulation S-K to strengthen human capital disclosures. Thank you for your attention to this important matter.

Sincerely,

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WASHINGTON — U.S. Sens. Mark Warner (D-VA) and Marco Rubio (R-FL) applauded the Senate passage of their Air America Act of 2021. The legislation, first introduced by Warner and Rubio in July 2020, would provide Air America employees with the federal retirement credit they earned.

“I’m very pleased to know that Air Americans are one step closer to receiving the retirement benefits and recognition they deserve for their courage during the U.S. war effort in Vietnam and Southeast Asia,” Sen. Warner said. “These individuals courageously supported troops, rescued downed American pilots and sustained casualties in the line of duty. Passing this bill is the least we can do to honor their service to our country."

“The brave men and women employed by Air America who conducted operations during the Cold War, Korean War, and Vietnam War were critical to U.S. efforts,” Sen. Rubio said. “I’m pleased that this bill has passed the Senate, and I hope the House will swiftly do the same, so that these Americans can receive the long-overdue honor and recognition they deserve.”

Air America was a wholly government-owned and operated corporation that conducted operations during the Cold War, Korean War, and Vietnam War. Their employees worked under the direct policy guidance of the White House, Department of Defense, and the Department of State while under the management of the Central Intelligence Agency (CIA).

Air America employed several hundred U.S. citizens, mainly flight crew members, and approximately 286 were killed in the line of duty while conducting covert operations in designated war zones. The last helicopter mission that rescued personnel from the rooftops in Saigon in 1975 was planned and executed by Air America and the United States Marine Corps. 

Since 2009, the declassification of CIA Agency documents confirmed that Air Americans were employees of the U.S. Government at the time of their service and entitled to federal retirement credit based on the circumstances of their employment. Congress has maintained its interest in resolving the retirement situation of Air American employees for more than 15 years. During this process, the Office of Personnel Management, the Merit Systems Protection Board, the CIA and the Director of National Intelligence have all concluded that congressional action is required.

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 WASHINGTON – U.S. Sens. Mark R. Warner (D-VA), Sherrod Brown (D-OH), John Thune (R-SD), and Chuck Grassley (R-IA) introduced legislation to allow retired first responders to withdraw from their retirement without being penalized. The senators’ legislation would improve and reform the Healthcare Enhancement for Local Public Safety Act (HELPS), by changing state and local direct payment requirements from mandatory to optional, and creating an alternative to the current method, allowing the retirement system to make the distribution to the retired public safety officer. The retiree can then make the premium payment to the provider and remain eligible for the tax exclusion.

“Virginia’s first responders put themselves at risk every day to protect our communities – the least we can do is ensure that they are taken care of in retirement,” said Sen. Warner. “I’m proud to introduce the bipartisan Police and Fire Health Care Protection Act of 2022, which will make it easier for tens of thousands of retired officers – like Mr. Wally Bunker, a stalwart advocate and retired police officer from Culpepper – to claim the benefits that they have earned.”

“Ohio firefighters and other first responders wear their bodies out protecting our families and communities, and they shouldn’t have to worry about being penalized for withdrawing from retirement that they’ve earned,” said Sen. Brown. “This is a simple solution that allows first responders to keep their own money and alleviate pressure on state and local governments.”

“We owe a great debt of gratitude to our retired police officers, firefighters, and other first responders who dedicated their lives to protecting our communities and keeping our friends, families, and neighbors across South Dakota safe,” said Sen. Thune. “Currently, it is extremely difficult for retired first responders to utilize an existing benefit that helps cover certain health care expenses, which is why I introduced this legislation that would ensure these retirees can make tax-free withdrawals from their pension and direct those amounts to qualifying insurance premiums.

“First responders play a vital role in our communities, addressing a variety of high-stress emergency situations throughout their careers. All first responders ought to be able to take advantage of a tax benefit that is intended to help them access health coverage in retirement,” said Sen. Grassley.

In order to implement the direct payment requirement under current law, state and local retirement systems are now responsible for directly paying often numerous health and long-term care providers and keeping track of changes to premium amounts and payment deadlines for thousands and sometimes tens of thousands of retirees. This already challenging task is made even more difficult because providers will often communicate only with the retiree policyholder and not with the retirement system. Information does not flow seamlessly, and inadvertent errors are made. In addition, due to the complexity, some retirement systems have made the decision to not implement HELPS, thereby resulting in retired public safety officers covered by these pension plans being ineligible for the tax benefit.

“Too often fire fighters are forced to retire early and have no access to affordable health insurance. We owe it to our fire fighters and EMS providers to help them access quality healthcare after making a career’s worth of physical and mental sacrifices for our communities,” said Edward Kelly, General President, International Association of Fire Fighters. “This legislation ensures our retired fire fighters can access their hard-earned retirement income to pay for health insurance costs. The IAFF thanks Senators Brown, Thune, Warner, and Grassley for their commitment to supporting our retirees and helping them to maintain a healthy and secure retirement.”

“In 2006, Congress enacted the HELPS Retirees Act, which provided a modest tax benefit to help retired public safety officers afford health insurance by allowing the use, on a pre-tax basis, of up to $3,000 annually from their pension funds health care and long-term care insurance,” said Patrick Yoes, National President, Fraternal Order of Police. “However, too many public safety officers were ineligible or lost their eligibility for this benefit because of the law’s ‘direct pay’ requirement. This means that the public pension system must pay the health or long-term care insurance company directly in order to exclude these payments from the employee’s gross income.  Officers whose pensions are or came to be administered by third parties could not take advantage of this tax break. We are very grateful to Senators Brown and Thune for introducing legislation which repeals this direct pay requirement and provides a modest increase to the benefit.”

“On behalf of Ohio’s and the nation’s public safety personnel we are grateful to Senator Brown for his leadership on this issue. The new legislation will ensure that first responders receive the assistance Congress intended them to receive with their health care expenses in retirement,” said Mary Beth Foley, Executive Director, Ohio Police & Fire Pension Fund (OP&F).

Under the senators’ bill, plans that are able to implement HELPS through the current direct payment method, possibly because they have only one or two providers to pay and a small number of retirees, may continue to do so. However, for the many retirement systems that are experiencing administrative problems with the current requirement or have refused to implement HELPS because of the burdens, the senator’s legislation will allow them to make distributions to their retirees without rendering the retiree ineligible for the tax exclusion.

In cases where the distribution is made to the retiree, the legislation would require the retiree to include with their tax return an attestation that the amount sought to be excluded from the pension distribution does not exceed the amount paid by the employee for qualified health insurance premiums for the taxable year. The tax exclusion is capped under current law at $3,000 per year.

The bill has been endorsed by the Fraternal Order of Police, National Association of Police Organizations, and the International Association of Fire Fighters.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), a member of the Senate Committee on Banking, Housing, and Urban Affairs, and U.S. Sen. Sherrod Brown (D-OH), chairman of the committee, today called on the Securities and Exchange Commission (SEC) to require companies to report on how many workers they employ who are not classified as full-time employees, including independent and subcontracted workers.

“We believe that the disclosure of this data is critical to fully capture companies’ human capital management. We applaud the SEC for focusing on strengthening human capital disclosures as part of its regulatory agenda,” wrote the senators in a letter to SEC Chairman Gary Gensler. “It is clear that investors need more information to understand how companies treat people, the most critical asset of any company. We agree that investors need disclosures that include quantifiable and comparable datasets that clearly articulate a company’s human capital management, such as metrics on turnover, skills and development training, compensation, benefits, workforce demographic, and health and safety… That picture would be wholly incomplete, however, if companies are not required to disclose information about the number of independent contractors they use on a regular basis and the entire workforce that is material to their business strategy.”

Examples of subcontracted out workers considered part of the material workforce include security personnel, janitors, food service workers, housekeepers for hotels and lodging real estate investment trusts (REIT), and custodial workers.

“In recent decades, companies have replaced in-house operations with contracting, on-demand work, or other forms of independent and contracted work that lower short-term costs for the business but come at the expense of workers, who receive fewer benefits, lower wages, and have less upward mobility within the organization. This is one of the defining tensions that has emerged as companies have prioritized short-term profits at the expense of investments in their workforce and long-term productivity. As you know, these decisions have material effects on a business’ financial performance,” the senators noted.

Concluded the senators, “We appreciate the SEC is working towards the shared goal of ensuring that investors and shareholders have the information they need to understand companies’ human capital management, a critical piece of understanding a company’s performance as well as potential long-term, systemic risks to the U.S. economy. We urge you to ensure that future SEC rulemaking captures this long-term trend of companies’ increasing use of outsourcing, independent contractors, and subcontracting, which will be a critical data point in understanding companies’ human capital management.”

Sen. Warner, a former entrepreneur and venture capitalist, has long stressed the importance of updating human capital disclosure requirements to reflect the priorities of modern companies. In May, Sen. Warner introduced the Workforce Investment Disclosure Act, which would require public companies to disclose basic human capital metrics, including workforce turnover rates, skills and development training, workforce health and safety, workforce engagement, and compensation statistics.

A full copy of the letter is available here and below.

Dear Chairman Gensler:

We are writing to urge the Securities and Exchange Commission (SEC) to ensure that, as part of its agenda to improve human capital disclosure, companies report on the numbers of their workers who are not classified as full-time employees, including independent contractors, as well as the entire workforce that is material to the company and its investors (the “material workforce”) such as subcontracted workers. We believe that the disclosure of this data is critical to fully capture companies’ human capital management.

We applaud the SEC for focusing on strengthening human capital disclosures as part of its regulatory agenda. It is clear that investors need more information to understand how companies treat people, the most critical asset of any company. We agree that investors need disclosures that include quantifiable and comparable datasets that clearly articulate a company’s human capital management, such as metrics on turnover, skills and development training, compensation, benefits, workforce demographic, and health and safety. As you have indicated in prior remarks, “Large and small investors, representing literally tens of trillions of dollars, are looking for consistent, comparable, and decision-useful disclosures in these areas to determine whether to invest, sell, or make a voting decision one way or another.”

That picture would be wholly incomplete, however, if companies are not required to disclose information about the number of independent contractors they use on a regular basis and the entire workforce that is material to their business strategy. Examples of subcontracted out workers that should be considered part of the material workforce include security personnel, janitors, food service workers, housekeepers for hotels and lodging real estate investment trusts (REIT), and custodial workers. In recent decades, companies have replaced in-house operations with contracting, on-demand work, or other forms of independent and contracted work that lower short-term costs for the business but come at the expense of workers, who receive fewer benefits, lower wages, and have less upward mobility within the organization. This is one of the defining tensions that has emerged as companies have prioritized short-term profits at the expense of investments in their workforce and long-term productivity. As you know, these decisions have material effects on a business’ financial performance. 

We appreciate the SEC is working towards the shared goal of ensuring that investors and shareholders have the information they need to understand companies’ human capital management, a critical piece of understanding a company’s performance as well as potential long-term, systemic risks to the U.S. economy. We urge you to ensure that future SEC rulemaking captures this long-term trend of companies’ increasing use of outsourcing, independent contractors, and subcontracting, which will be a critical data point in understanding companies’ human capital management. 

Thank you for your attention to this important matter.

WASHINGTON – Today, U.S. Mark R. Warner (D-VA) joined Sens. Sherrod Brown (D-OH) and Rob Portman (R-OH) in urging the U.S. International Trade Commission (ITC) to side with American workers and fully and fairly enforce U.S. trade remedy laws. In a bipartisan letter to the ITC, Warner, Brown, and Portman led their colleagues in pressing the ITC to give full and fair consideration to the United Steelworker’s petitions in these cases of unfairly traded imports. Warner, Brown, and Portman led this letter with Sens. Richard Burr (R-NC), Kirsten Gillibrand (D-NY), Todd Young (R-IN), Charles E. Schumer (D-NY), Mike Braun (R-IN), Tim Kaine (D-VA), John Boozman (R-AR), and Raphael Warnock (D-GA).

“U.S. trade remedy laws are intended to provide relief to U.S. companies and their workers when they are undermined by unfairly traded imports.  We urge you to give full and fair consideration to the USW petitions in these cases and to ensure U.S. trade remedy laws are fully enforced,” the Senators wrote.

For years, United Steelworkers at tire companies including Cooper Tire in Findlay, Ohio, have found themselves at a severe competitive disadvantage due to unfairly traded foreign imports. The United Steelworkers’ trade petitions seeks to secure relief for their members in the tire industry to ensure the U.S. tire industry can compete on a level playing field.  

Full text of the letter is available here and below: 

The Honorable Jason Kearns

Chairman

United States International Trade Commission

500 E Street, SW

Washington, D.C. 20436

Dear Chairman Kearns:

We write on behalf of U.S. passenger vehicle and lightweight tire (PVLT) manufacturers and their workers who face ongoing challenges from unfairly traded tire imports in the above referenced cases and to reiterate our support for strong enforcement of U.S. trade remedy laws.  

The U.S. tire industry has been marked by unfair trade from foreign competitors for years.  In 2009, President Obama imposed Section 421 tariffs on Chinese tire imports to address the systemic dumping of tires in the U.S. market.  After the tariffs expired, USW tire-producing members again faced unfair competition, and the union filed antidumping (AD) and countervailing duty petitions in 2014.  AD and CVD orders have been in place on certain Chinese PVLT imports since.  Unfortunately, other foreign competitors are employing unfair practices to gain market share in the U.S. while Chinese tire imports face additional duties.  As a result, the USW union recently filed the AD and CVD petitions against tire producers in Korea, Taiwan, Thailand, and Vietnam.

U.S. trade remedy laws are intended to provide relief to U.S. companies and their workers when they are undermined by unfairly traded imports.  We urge you to give full and fair consideration to the USW petitions in these cases and to ensure U.S. trade remedy laws are fully enforced.  

Sincerely, 

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), a member of the Senate Finance and Banking Committees, along with Sens. Debbie Stabenow (D-MI) and Bob Casey (D-PA) reintroduced legislation to promote workers’ long-term economic success and support U.S. economic recovery efforts amid the COVID-19 pandemic. The Investing in American Workers Act of 2021 prioritizes workers in U.S. recovery efforts by creating a tax credit to incentivize employers to invest in training tied to recognized postsecondary credentials for lower- and moderate-income workers

Companion legislation has been introduced in the House of Representatives by Rep. Raja Krishnamoorthi (D-IL), Rep. Jeff Van Drew (R-NJ), Rep. Abigail Spanberger (D-VA), Rep. Dan Meuser (R-PA), Rep. Cindy Axne (D-IA), Rep. Susan Wild (D-PA), and Rep. Tom Emmer (R-MN).

“As too many families know, the COVID-19 crisis has taken a major toll on the American workforce, pushing millions of workers into unemployment and decimating jobs that, frankly, may never come back. That’s why we need companies – especially those that employ a lot of low-wage workers – to be equal partners in the recovery effort by stepping in and offering training opportunities that grow workers’ skills for years to come,” said Sen. Warner. “We’re introducing a bill that builds upon the success of the R&D tax credit model and gives companies an incentive to invest in people, like they do R&D, to give more workers a chance to succeed during and after COVID-19.”

“In Michigan, our workers are the best in the world and investing in them is the right thing to do. Our bipartisan bill does just that by supporting employers who offer training opportunities that grow workers’ skills for years to come,” said Sen. Stabenow.

“Today’s fast-paced economy demands regular training for our workforce to keep our economy competitive, yet the percentage of American workers receiving employer-sponsored and on-the-job training has decreased dramatically in recent decades,” said Rep. Krishnamoorthi. “The Investing In American Workers Act will ensure our workers are able to develop the in-demand skills they need to build rewarding careers while helping American companies grow and thrive.”

“The success of our nation’s economic recovery depends on the success of our workforce. But in Central Virginia and across the country, many working families continue to experience significant hardships due to the COVID-19 crisis — and many workers cannot independently afford the skills and training they need to access new opportunities, secure better-paying jobs, and gain peace of mind. In this climate, we need to celebrate and reward companies that make an effort to take care of their employees,” said Rep. Spanberger. “By providing tax incentives for American companies to invest in American workers, the Investing in American Workers Act is commonsense, bipartisan legislation that would recognize in-house workforce training as a key component of our country’s rebound. I’d like to thank my fellow Virginian Senator Warner for his leadership on this issue, and I look forward to working with my colleagues in the House and Senate to move this legislation forward.”

“Business owners know their employees’ success is their success and they are committed to helping their employees improve their skills to advance and grow in their career. The Investing in American Workers Act helps employers invest in job training, apprenticeships, and continuing education by providing a tax credit for training expenses driving more investment to close the skills gap, advance careers, and ultimately grow the small businesses that drive our economy,” said Rep. Meuser. 

“A four-year college degree isn’t the only pathway to prosperity, nor is it the only way to acquire the skills needed to be successful. When a company invests in high-quality skills and workforce training programs for their employees, both the company and the worker succeed,” said Rep. Axne. “I’m proud to join my colleagues in introducing the Investing in American Workers Act to encourage companies to get their workers the skills they need to thrive in the modern economy.”

“Now is the time to invest in our workforce and incentivize job training, especially for lower and middle-income workers, ” said Rep. Wild. “The Investing in American Workers Act of 2021 does just that and builds off a proven model of success to create the dynamic workforce our modern economy requires while bringing in valuable industry partners along the way. The pandemic and subsequent economic crisis has devastated families across Pennsylvania, and I’m proud to support this effort to get more Americans back to work in the good-paying jobs of the future.”

“A four-year college degree should not, and cannot, be the only path to a successful career or financial security. This bipartisan legislation will promote apprenticeships and build a stronger American workforce. Although our nation continues to face a skills-gap, on-the-job educational and technical training opportunities will help us bridge the divide while giving Americans opportunities to advance their careers. I am proud to join Rep. Krishnamoorthi in this effort to ensure Americans have access to good-paying jobs when they need it more than ever,” said Rep. Emmer.

Right now, many companies have almost no direct financial incentive to invest in their workers. In fact, the current U.S. tax code offers a Research and Development (R&D) tax credit for employers that make long-term investments in innovation – such as computers, buildings, and machines – but not workers. In order to ensure the nation’s workforce is better prepared for a post-pandemic 21st century economy, tax and accounting systems need to be updated to promote these same kinds of investments in workforce training. 

The Investing in American Workers Act of 2021 would make it easier for companies to invest in training their workers by:

·       Establishing a tax credit for employers who increase their spending on worker training:

o   Employers who spend more on training their workers in a given year than they have on average in the previous three years are eligible to receive a tax credit based on their increase in spending.

o   The amount of the credit is equal to 20 percent of the increased spending. The spending eligible for the credit must be used to provide qualified training to employees earning $82,000 or less per year. 

o   For employers who are new to spending on qualified training or have a gap in any of the past three taxable years, the credit is calculated as 10 percent of the qualified training expenditures for the current year, multiplied by a cost-of-living adjustment factor. Requires collecting and reporting of racial, ethnic, and gender demographics.

·       Incentivizing high-quality training by detailing allowable providers and programs:

o   Qualified training may be provided through a nationally or state-recognized registered apprenticeship program; a WIOA-certified training program; a program conducted by an area career and technical education school, community college, or labor organization; or a program sponsored or administered by an employer, industry trade association, industry or sector partnership, or labor organization.

o   Qualified training must result in the completion of a recognized postsecondary credential, including an industry-recognized certificate or certification, a certificate of completion of an apprenticeship, a license recognized by the State or Federal Government, or an associate or bachelor’s degree.

·       Pursuing clarity on the statutory definition of recognized postsecondary credential:

o   Requires the Secretary of Labor, in consultation with the Secretary of the Treasury, to issue regulations or guidance on the definition of “recognized postsecondary credential” within one year.

·       Encouraging small businesses to upskill their workers by providing a simplified filing process and allowing them to apply the credit against payroll and alternative minimum taxes:

o   Qualified small businesses making less than $5,000,000 for at least six years in a row, as well as qualified tax-exempt entities, can elect to apply up to $250,000 of the credit against payroll taxes.

“The world of work is changing at a rapid pace and Workday believes a focus on skills is essential to providing workers and employers the agility they need to navigate these changes. We appreciate the reintroduction of the Investing in American Workers Act, helping support the workers who need it most with access to reskilling and providing employers with even more incentive to invest in their most valuable asset: their people,” said Rich Sauer, Workday Chief Legal Officer and Head of Corporate Affairs.

“U.S. businesses – including small and medium sized employers – are investing every day in the skills of their workforce, helping their employees advance their careers and creating new job opportunities in our communities. But today’s tax code doesn’t adequately reward those companies that are willing to make these critical investments, making it harder for businesses to compete in a global economy,” said Katie Spiker, Director of Government Affairs for the National Skills Coalition. “Sen. Warner’s and Rep. Krishnamoorthi’s legislation is an important step in the right direction, and will help expand high quality training that leads to better results for companies and workers alike. We look forward to working with Senator Warner and Rep. Krishnamoorthi to advance this legislation and we applaud his leadership and vision on this vital issue.”

Sen. Warner has been an outspoken advocate of investing in workers and ensuring they are adequately equipped to participate in the 21st century labor force. Earlier this year, Sen. Warner released the first two parts of his 3-part white paper series on the future of American capitalism, which focuses on what the U.S. will need to do to address the chronic under-investment in workers and create an inclusive 21st century economy that does not leave workers behind. Part one of the white paper is available here. Part two is available here.

Bill text is available here. A summary of the bill is available here.

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