HR 4394 IHCommentsClose CommentsPermalink

112th CONGRESSCommentsClose CommentsPermalink

2d SessionCommentsClose CommentsPermalink

H. R. 4394CommentsClose CommentsPermalink

To provide incentives to encourage financial institutions and small businesses to provide continuing financial education to customers, borrowers, and employees, and for other purposes.CommentsClose CommentsPermalink

IN THE HOUSE OF REPRESENTATIVESCommentsClose CommentsPermalink

April 18, 2012CommentsClose CommentsPermalink

Ms. EDDIE BERNICE JOHNSON of Texas introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Financial Services and Small Business, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concernedCommentsClose CommentsPermalink

A BILLCommentsClose CommentsPermalink

To provide incentives to encourage financial institutions and small businesses to provide continuing financial education to customers, borrowers, and employees, and for other purposes.CommentsClose CommentsPermalink

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,CommentsClose CommentsPermalink

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘National Financial Literacy Act of 2012’.CommentsClose CommentsPermalink

SEC. 2. FINANCIAL LITERACY PROGRAMS.

Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 2903) is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(e) Direct Support for Financial Literacy Programs Taken Into Account-CommentsClose CommentsPermalink





‘(1) STANDARDS ESTABLISHED FOR ELIGIBLE PROGRAMS- The appropriate Federal financial supervisory agencies shall jointly prescribe regulations establishing--CommentsClose CommentsPermalink





‘(A) the minimum standards required to be met by a community-based financial literacy program in order to be eligible for consideration under paragraph (3) as a qualified community-based financial literacy program;CommentsClose CommentsPermalink





‘(B) the procedures for financial institutions to apply to the appropriate Federal financial supervisory agency for approval of a financial literacy program as a qualified community-based financial literacy program; andCommentsClose CommentsPermalink





‘(C) a requirement that financial institutions submit a regular report on how the institution supported and promoted financial literacy in its entire community, including low- and moderate-income neighborhoods.CommentsClose CommentsPermalink





‘(2) FACTORS- The regulations required under paragraph (1) shall require at a minimum that a qualified community-based financial literacy program--CommentsClose CommentsPermalink





‘(A) be offered by a nonprofit budget and counseling agency which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986; andCommentsClose CommentsPermalink





‘(B) include adequate education to promote 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.CommentsClose CommentsPermalink





‘(3) PROGRAMS TAKEN INTO ACCOUNT- The direct support by a financial institution of a qualified community-based financial literacy program may be taken into account by the appropriate Federal financial supervisory agency under subsection (a) in assessing the institution’s record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, in such amount and to such extent as may be provided in the joint regulations prescribed under paragraph (1).’.CommentsClose CommentsPermalink

SEC. 3. CREDIT AGAINST INCOME TAX FOR SMALL BUSINESSES WHICH PROVIDE CONTINUING FINANCIAL EDUCATION TO EMPLOYEES.

(a) In General- 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 section:CommentsClose CommentsPermalink

‘SEC. 45S. SMALL BUSINESSES PROVIDING CONTINUING FINANCIAL EDUCATION TO EMPLOYEES.

‘(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.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(c) Qualified Continuing Financial Education Program- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘qualified continuing financial education program’ means any educational program or services--CommentsClose CommentsPermalink





‘(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),CommentsClose CommentsPermalink





‘(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,CommentsClose CommentsPermalink





‘(C) which is offered to all employees of the taxpayer who have at least 2 weeks of service with the employer, andCommentsClose CommentsPermalink





‘(D) which is offered during--CommentsClose CommentsPermalink





‘(i) at least 24 hours of each month if the taxpayer is a corporation, orCommentsClose CommentsPermalink





‘(ii) at least 16 hours of each month in any other case.CommentsClose CommentsPermalink





‘(d) Small Business- For purposes of this section--CommentsClose CommentsPermalink





‘(1) IN GENERAL- The term ‘small business’ means, with respect to any taxable year, any employer if--CommentsClose CommentsPermalink





‘(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, andCommentsClose CommentsPermalink





‘(B) such employer employed at least 2 employees on the first day of the taxable year.CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(3) SPECIAL RULES-CommentsClose CommentsPermalink





‘(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.CommentsClose CommentsPermalink





‘(B) PREDECESSORS- Any reference in this subsection to an employer shall include a reference to any predecessor of such employer.’.CommentsClose CommentsPermalink





(b) Denial of Double Benefit- Section 280C of such Code is amended by adding at the end the following new subsection:CommentsClose CommentsPermalink





‘(j) 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 45S(a). In the case of persons treated as a single employer under section 45S(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.’.CommentsClose CommentsPermalink





(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 (35), by striking the period at the end of paragraph (36) and inserting ‘, plus’, and by adding at the end the following new paragraph:CommentsClose CommentsPermalink





‘(37) the continuing financial education credit under section 45S(a).’.CommentsClose CommentsPermalink





(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:CommentsClose CommentsPermalink





‘Sec. 45S. Small businesses providing continuing financial education to employees.’.CommentsClose CommentsPermalink





(e) Effective Date- The amendments made by this section shall apply to taxable years beginning after December 31, 2011.CommentsClose CommentsPermalink

SEC. 4. PREFERENCE IN FEDERAL CONTRACTS, LOANS, AND OTHER ASSISTANCE FOR SMALL BUSINESSES AND CORPORATIONS PROVIDING CONTINUING FINANCIAL EDUCATION TO EMPLOYEES.

(a) Preference- In the case of any Federal contract or any Federal financial or nonfinancial assistance, an eligible small business or an eligible corporation shall be given a preference when submitting a bid or proposal for the contract or applying for such assistance.CommentsClose CommentsPermalink





(b) Definitions- In this section:CommentsClose CommentsPermalink





(1) ELIGIBLE SMALL BUSINESS- The term ‘eligible small business’ has the meaning provided in section 45S(b) of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(2) ELIGIBLE CORPORATION- The term ‘eligible corporation’ means any corporation--CommentsClose CommentsPermalink





(A) that employs 50 or more employees; andCommentsClose CommentsPermalink





(B) that provides without charge a qualified continuing financial education program to its employees throughout the taxable year.CommentsClose CommentsPermalink





(3) QUALIFIED CONTINUING FINANCIAL EDUCATION PROGRAM- The term ‘qualified continuing financial education program’ has the meaning provided in section 45S(c) of the Internal Revenue Code of 1986.CommentsClose CommentsPermalink





(4) FEDERAL FINANCIAL OR NONFINANCIAL ASSISTANCE- The term ‘Federal financial or nonfinancial assistance’ means--CommentsClose CommentsPermalink





(A) all programs and activities involving Federal financial and nonfinancial assistance and benefits, as covered by Executive Order No. 12549 and guidelines implementing that order; andCommentsClose CommentsPermalink





(B) procurement programs and activities, including Federal contracts for the procurement of goods or services.CommentsClose CommentsPermalink





(c) Effective Date- The preference required under subsection (a) shall be applied beginning on January 1, 2013.CommentsClose CommentsPermalink