`(a) In General- In the case of an eligible small business, the continuing financial education credit determined under this section is an amount equal to 35 percent of the continuing financial education expenses paid or incurred by the taxpayer during the taxable year.
`(b) Eligible Small Business- For purposes of this section, the term `eligible small business' means any small business which provides without charge a qualified continuing financial education program to its employees throughout the taxable year.
`(c) Qualified Continuing Financial Education Program- For purposes of this section--
`(1) IN GENERAL- The term `qualified continuing financial education program' means any educational program or services--
`(A) which is provided by a community-based budget and counseling agency which is described in section 501(c)(3) and exempt from tax under section 501(a),
`(B) which promotes consumer understanding of consumer, economic, and personal finance issues and concepts, including saving for retirement, managing credit, long-term care, estate planning and education on predatory lending, identity theft, and financial abuse schemes,
`(C) which is offered to all employees of the taxpayer who have at least 2 weeks of service with the employer, and
`(D) which is offered during--
`(i) at least 24 hours of each month if the taxpayer is a corporation, or
`(ii) at least 16 hours of each month in any other case.
`(d) Small Business- For purposes of this section--
`(1) IN GENERAL- The term `small business' means, with respect to any taxable year, any employer if--
`(A) such employer employed an average of at least 2 but not more than 50 employees on business days during the most recent calendar year ending before such taxable year, and
`(B) such employer employed at least 2 employees on the first day of the taxable year.
`(2) EMPLOYERS NOT IN EXISTENCE IN PRECEDING YEAR- In the case of an employer which was not in existence throughout the calendar year referred to in paragraph (1), the determination under paragraph (1) shall be based on the average number of employees that it is reasonably expected such employer will employ on business days in the taxable year.
`(3) SPECIAL RULES-
`(A) CONTROLLED GROUPS- For purposes of this subsection, all persons treated as a single employer under subsection (b), (c), (m), or (o) of section 414 shall be treated as 1 employer.
`(B) PREDECESSORS- Any reference in this subsection to an employer shall include a reference to any predecessor of such employer.'.
(b) Denial of Double Benefit- Section 280C of such Code (relating to certain expenses for which credits are allowable) is amended by adding at the end the following new subsection:
`(f) Credit for Small Businesses Providing Continuing Financial Education to Employees- No deduction shall be allowed for that portion of the expenses paid or incurred during the taxable year which is equal to the credit determined for the taxable year under sections 45O(a). In the case of persons treated as a single employer under section 45O(d)(3)(A), this subsection shall be applied under rules prescribed by the Secretary similar to the rules applicable under subsections (a) and (b) of section 52.'.
(c) Credit To Be Part of General Business Credit- Section 38(b) of such Code is amended by striking `plus' at the end of paragraph (30), by striking the period at the end of paragraph (31) and inserting `, plus', and by adding at the end the following new paragraph:
`(32) in the case of an eligible small business (as defined in section 45O(d)), the continuing financial education credit under section 40O(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:
(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2008.
U.S. Congress - Text of H.R.5965 as Introduced in House Employers Financial Literacy Act
