text: 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.
target: 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.
feat_title: Skilled Workforce Enhancement Act of 1998