text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Economic Modernization Act''.
  
  SEC. 2. ECONOMIC TRANSITION CREDIT.
  
      (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
  of the Internal Revenue Code of 1986, as amended by section 13403(a) of 
  Public Law 115-97, is amended by adding at the end the following new 
  section:
  
  ``SEC. 45T. ECONOMIC TRANSITION CREDIT.
  
      ``(a) In General.--For purposes of section 38, the amount of the 
  economic transition credit determined under this section for the 
  taxable year shall be equal to the sum of any applicable payroll taxes 
  paid by an employer during the taxable year with respect to employment 
  of any qualified employee.
      ``(b) Definitions.--For purposes of this section:
              ``(1) Applicable payroll taxes.--
                      ``(A) In general.--The term `applicable payroll 
                  taxes' means, with respect to any employer for any 
                  taxable year, the amount of the taxes imposed by--
                              ``(i) section 3111 on wages paid by an 
                          employer with respect to employment of 
                          qualified employee during the applicable 
                          period, and
                              ``(ii) section 3221(a) on compensation paid 
                          by an employer with respect to services 
                          rendered by a qualified employee during the 
                          applicable period.
                      ``(B) Applicable period.--For purposes of 
                  subparagraph (A), the term `applicable period' means 
                  the 3-year period beginning with the day the qualified 
                  employee begins work for the employer.
              ``(2) Declining field.--
                      ``(A) In general.--The term `declining field' means 
                  any occupation or field of work which has been 
                  determined by the Secretary, in consultation with the 
                  Bureau of Labor Statistics of the Department of Labor, 
                  to have experienced a decline in the level of average 
                  employment in such occupation or field in the United 
                  States of not less than 8 percent over the most recent 
                  3-year period for which such information is available.
                      ``(B) Determination and publication.--The 
                  Secretary, in consultation with the Bureau of Labor 
                  Statistics of the Department of Labor, shall annually--
                              ``(i) determine which occupations or fields 
                          of work satisfy the requirements described in 
                          subparagraph (A), and
                              ``(ii) publish and make available on the 
                          website of the Department of the Treasury a 
                          complete list of such occupations and fields of 
                          work.
              ``(3) Qualified employee.--
                      ``(A) In general.--The term `qualified employee' 
                  means an individual who--
                              ``(i) is provided wages for employment by 
                          the employer (as such terms are defined in 
                          section 3121), provided that such employment is 
                          not in a declining field,
                              ``(ii) is not a covered employee (as 
                          defined in section 162(m)(3)), and
                              ``(iii) was employed in a declining field 
                          for any period during the 12-month period 
                          preceding the applicable period under paragraph 
                          (1)(B).
                      ``(B) Nonqualifying rehires.--The term `qualifying 
                  employee' shall not include any individual who, prior 
                  to the beginning of the applicable period under 
                  paragraph (1)(B), had been employed by the employer at 
                  any time.''.
      (b) Credit Part of General Business Credit.--Section 38(b) of the 
  Internal Revenue Code of 1986, as amended by section 13403(b) of Public 
  Law 115-97, is amended by striking ``plus'' at the end of paragraph 
  (36), by striking the period at the end of paragraph (37) and inserting 
  ``, plus'', and by adding at the end the following new paragraph:
              ``(38) the economic transition credit determined under 
          section 45T(a).''.
      (c) Clerical Amendment.--The table of sections for 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 item:
  
  ``Sec. 45T. Economic Transition Credit.''.
      (d) Effective Date.--The amendments made by this section shall 
  apply to taxable years beginning after the date of the enactment of 
  this Act.
  
  SEC. 3. ENHANCEMENTS TO CERTAIN EDUCATION TAX BENEFITS FOR 
                PROFESSIONALS IN SHORT SUPPLY.
  
      (a) In General.--
              (1) Publication.--For each calendar year beginning after 
          the date of the enactment of this Act, the Secretary of the 
          Treasury, in consultation with the Secretary of Labor, shall 
          publish and make available on the website of the Department of 
          the Treasury a list of any occupation or field of work which 
          qualifies as a short supply field for such calendar year.
              (2) Short supply field.--The term ``short supply field'' 
          means an occupation or field of work which the Secretary of the 
          Treasury, in consultation with the Secretary of Labor, has 
          determined--
                      (A) requires--
                              (i) theoretical and practical application 
                          of a body of highly specialized knowledge; and
                              (ii)(I) attainment of a bachelor's or 
                          higher degree in the specific specialty (or its 
                          equivalent); or
                              (II) experience in the specialty equivalent 
                          to the completion of such degree; and
                      (B) has an insufficient number of individuals who 
                  are citizens or residents of the United States and are 
                  qualified, willing, and able to satisfy the demand for 
                  labor in such occupation or field of work.
      (b) Enhancements to Certain Education Tax Benefits.--
              (1) In general.--
                      (A) Educational assistance programs.--Paragraph (2) 
                  of section 127(a) of the Internal Revenue Code of 1986 
                  is amended by inserting ``(or, in the case of an 
                  individual employed in an occupation or field of work 
                  which has been designated as a short supply field for 
                  such calendar year pursuant to section 3(a) of the 
                  Economic Modernization Act, the first $15,000 of such 
                  assistance so furnished)'' before the period at the 
                  end.
                      (B) Interest on education loans.--Paragraph (1) of 
                  section 221(b) of the Internal Revenue Code of 1986 is 
                  amended by inserting ``(or, in the case of a individual 
                  employed in an occupation or field of work which has 
                  been designated, pursuant to section 3(a) of the 
                  Economic Modernization Act, as a short supply field for 
                  the calendar year in which such taxable year began, 
                  shall not exceed $8,000)'' before the period at the 
                  end.
                      (C) Qualified tuition and related expenses.--
                  Paragraph (1) of section 222(b) of the Internal Revenue 
                  Code of 1986 is amended by inserting ``(or, in the case 
                  of an individual employed in an occupation or field of 
                  work which has been designated, pursuant to section 
                  3(a) of the Economic Modernization Act, as a short 
                  supply field for the calendar year in which such 
                  taxable year began, an amount equal to the applicable 
                  dollar limit multiplied by 2)'' before the period at 
                  the end.
              (2) Exclusion for certain employer payments of student 
          loans.--
                      (A) In general.--Paragraph (1) of section 127(c) of 
                  the Internal Revenue Code of 1986 is amended by 
                  striking ``and'' at the end of subparagraph (A), by 
                  redesignating subparagraph (B) as subparagraph (C), and 
                  by inserting after subparagraph (A) the following new 
                  subparagraph:
                      ``(B) in the case of an employee employed in an 
                  occupation or field of work which has been designated 
                  as a short supply field for a calendar year pursuant to 
                  section 3(a) of the Economic Modernization Act, the 
                  payment by an employer during such calendar year, 
                  whether paid to the employee or to a lender, of 
                  principal or interest on any qualified education loan 
                  (as defined in section 221(d)(1)) incurred by the 
                  employee, and''.
                      (B) Conforming amendment; denial of double 
                  benefit.--Paragraph (1) of section 221(e) of the 
                  Internal Revenue Code of 1986 is amended by inserting 
                  before the period the following: ``, or for which an 
                  exclusion is allowable under section 127 to the 
                  taxpayer's employer by reason of the payment by such 
                  employer of any indebtedness on a qualified education 
                  loan of the taxpayer''.
              (3) Effective date.--The amendments made by this subsection 
          shall apply to taxable years beginning after the date of the 
          enactment of this Act.
  
  SEC. 4. DEDUCTION OF QUALIFIED ENTERPRISE INCOME.
  
      (a) In General.--Part VI of subchapter B of chapter 1 of the 
  Internal Revenue Code of 1986 is amended by inserting after section 181 
  the following new section:
  
  ``SEC. 182. QUALIFIED ENTERPRISE INCOME.
  
      ``(a) In General.--In the case of a qualified taxpayer, there shall 
  be allowed as a deduction an amount equal to any qualified enterprise 
  income of such taxpayer.
      ``(b) Limitation.--The amount of the deduction allowed under 
  subsection (a) for any taxable year shall not exceed an amount equal to 
  50 percent of the W-2 wages paid by the qualified taxpayer during such 
  taxable year.
      ``(c) Definitions.--In this section:
              ``(1) Qualified enterprise income.--
                      ``(A) In general.--The term `qualified enterprise 
                  income' means the amount equal to the excess (if any) 
                  of--
                              ``(i) the gross receipts of the qualified 
                          taxpayer for the taxable year which are 
                          properly allocable to a qualified facility, 
                          over
                              ``(ii) an amount equal to the sum of--
                                      ``(I) the cost of goods sold which 
                                  are allocable to such receipts, and
                                      ``(II) any other expenses, losses 
                                  or deductions (with the exception of 
                                  the deduction allowed under this 
                                  section) which are allocable to such 
                                  receipts.
                      ``(B) Limitation.--The term `qualified enterprise 
                  income' shall apply only to gross receipts described in 
                  subparagraph (A) for the 3-taxable-year period 
                  beginning after the qualified facility is placed in 
                  service.
                      ``(C) Method of allocation.--The Secretary shall 
                  prescribe regulations for ensuring proper allocation of 
                  amounts under subparagraph (A).
              ``(2) Qualified facility.--
                      ``(A) In general.--The term `qualified facility' 
                  means any nonresidential building (and its structural 
                  components) which--
                              ``(i) prior to 2000, was placed in service 
                          and used in the active conduct of a trade or 
                          business by a person other than the qualified 
                          taxpayer,
                              ``(ii) after being acquired by the 
                          qualified taxpayer, has been substantially 
                          rehabilitated,
                              ``(iii) during the 2-year period prior to 
                          commencement of rehabilitation by the qualified 
                          taxpayer, was not used in the active conduct of 
                          a trade or business, and
                              ``(iv) is located within a State.
                      ``(B) Substantial rehabilitation.--For purposes of 
                  this paragraph, a building shall be deemed to have been 
                  substantially rehabilitated only if--
                              ``(i) not less than 50 percent of the 
                          existing external walls of such building are 
                          retained in place as external walls,
                              ``(ii) not less than 75 percent of the 
                          existing internal structural framework of such 
                          building is retained in place, and
                              ``(iii) the amount properly chargeable to 
                          the capital account for any addition to or 
                          improvement of the building is in excess of an 
                          amount equal to the greater of--
                                      ``(I) the adjusted basis of such 
                                  building (and its structural 
                                  components), or
                                      ``(II) $20,000.
              ``(3) Qualified taxpayer.--The term `qualified taxpayer' 
          means the person that owns the qualified facility and directly 
          incurs not less than 50 percent of the expenses for 
          substantially rehabilitating such facility (under rules similar 
          to the rules applicable to self-rehabilitated buildings under 
          section 47(d)(4)).
              ``(4) State.--The term `State' means any State of the 
          United States or the District of Columbia or any Territory or 
          possession of the United States.
              ``(5) W-2 wages.--
                      ``(A) In general.--The term `W-2 wages' means, with 
                  respect to any person for any taxable year of such 
                  person, the amounts described in paragraphs (3) and (8) 
                  of section 6051(a) paid by such person with respect to 
                  employment of employees by such person during the 
                  calendar year ending during such taxable year.
                      ``(B) Limitation to wages attributable to qualified 
                  enterprise income.--Such term shall not include any 
                  amount which is not properly allocable to qualified 
                  enterprise income for purposes of subsection (c)(1).
                      ``(C) Return requirement.--Such term shall not 
                  include any amount which is not properly included in a 
                  return filed with the Social Security Administration on 
                  or before the 60th day after the due date (including 
                  extensions) for such return.''.
      (b) Clerical Amendment.--The table of sections for part VI of 
  subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
  amended by adding at the end the following new item:
  
  ``Sec. 182. Qualified Enterprise Income.''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to taxable years beginning after the date of the enactment of 
  this Act.
target: Economic Modernization Act  This bill amends the Internal Revenue Code to allow additional tax credits and deductions to assist employees who work in declining or short-supply fields.  A &quot;declining field&quot; has experienced a decline in the level of average employment of at least 8% over the most recent 3-year period.  A &quot;short-supply&quot; field: (1) requires theoretical and practical application of a body of highly specialized knowledge and certain degrees or experience in the specialty; and (2) has an insufficient number of U.S. citizens or residents who are qualified, willing, and able to satisfy the demand for labor in the occupation or field of work.  For employers, the bill allows an economic transition tax credit for payroll taxes paid over a three-year period with respect to employees who previously worked in a declining field.  For individuals employed in short-supply fields, the bill:   increases the limit for the exclusion from gross income for employer-provided educational assistance programs and expands the exclusion to include payments of education loans,  increases the limit for the deduction for interest on education loans, and   increases the limit for the deduction for qualified tuition and related expenses.  The bill also allows a deduction for companies that rehabilitate certain abandoned buildings. The deduction is equal to a portion of the income attributable to the rehabilitated building and may not exceed 50% of the wages paid by the company. 
feat_title: Economic Modernization Act