Companies that teach employees how to use and build artificial intelligence (AI) systems could receive a new tax credit for each worker they train under a bipartisan proposal introduced Wednesday by Reps. Josh Gottheimer, D-N.J., and Mike Lawler, R-N.Y.
Starting in 2026, the AI Workforce Training Act would offer companies a tax credit for teaching employees to use, manage, and build AI systems. Businesses could claim 30% of qualified expenses, up to $2,500 per worker annually.
After 2026, the credit would increase based on annual cost-of-living adjustments.
Gottheimer, who serves as co-chair of the House Commission on AI and the Innovation Economy, said the proposal aims to ensure that the American workforce can keep pace with AI.
“AI is already changing how we work and that transformation will keep getting faster, and we can’t let the American worker get left behind,” Gottheimer said in a statement. He added that the bill will bolster critical AI skills and productivity across the nation.
Lawler added that, “If quantum computing and AI are the future, our workforce can’t be left behind. This workforce tax credit gives them the training they need to compete for the high-paying tech jobs of tomorrow, right here at home.”
Qualified expenses eligible for tax credit include accredited AI training programs, such as workshops, certificate programs, and courses on prompt engineering, data literacy, machine learning fundamentals, or AI ethics, according to the bill.
Covered expenses also include employee wages while attending training, as well as expenses related to developing or providing in-house AI training, the bill said.
The proposal also directs the departments of Treasury, Labor, and Commerce to launch a public outreach campaign to promote awareness of the tax credit.
Outreach would include informational webinars for businesses and distribution of multilingual information through small business development centers, trade associations, and workforce boards, according to the bill’s text.
Within a year of the bill’s enactment, the agency secretaries would be required to submit a report to Congress on the outcomes of the public outreach campaign.
A Senate report last fall estimated 100 million job losses due to AI over the next decade. To prevent significant job loss and bolster innovation, other pieces of legislation have recently been introduced to equip the workforce with more AI skills.
Similar to the AI Workforce Training Act, the Investing in American Workers Act was introduced by Rep. Raja Krishnamoorthi, D-Ill., and Sen. Mark Warner, D-Va. The bill encourages employers to provide training in emerging technologies that leads to certified postsecondary credentials.
Beyond Congress, agencies have also taken up the reskilling effort. The Energy Department announced last month that it plans to train 100,000 American scientists and engineers in AI over the next decade, under its Genesis Mission.