Two House members introduced legislation Tuesday that would give companies a federal tax credit for training employees in artificial intelligence skills, pairing financial incentives with a government-led campaign to promote adoption across industries. The AI Workforce Training Act from Representatives Josh Gottheimer, a New Jersey Democrat, and Mike Lawler, a New York Republican, would allow businesses to claim 30 percent of qualifying AI training expenses as a tax credit, capped at $2,500 per employee annually.
The bipartisan proposal marks a shift in congressional AI policy discussions from regulation and safety concerns toward workforce development and economic competitiveness. Gottheimer, who co-chairs the House Commission on Artificial Intelligence and the Innovation Economy, framed the legislation as essential to maintaining U.S. leadership in AI innovation.
“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. “If we want America to continue to lead the world in AI innovation, we need to make sure American workers are ready for the jobs of the future.”
How the Tax Credit Works
Under the proposed legislation, companies could claim credits for a range of AI training investments. Eligible expenses include accredited courses, certificate programs, and workshops focused on AI skills. The bill also covers in-house training programs on topics such as AI ethics, data literacy, machine learning fundamentals, and prompt engineering.
The credit extends beyond external training costs. Companies can claim credits for employee salaries during training participation and for expenses related to developing or delivering in-house AI training programs. This broader scope makes the credit accessible to organizations of varying sizes, from small businesses using third-party training vendors to large corporations with internal training infrastructure.
The 30 percent credit rate and $2,500 annual cap per employee follow established federal tax incentive models. Similar workforce development tax credits, including the Work Opportunity Tax Credit, have used comparable structures to encourage employer investment in training. The legislation includes provisions for inflation adjustments to maintain the credit’s value over time.
Federal Outreach Campaign
A distinctive feature of the bill is its mandate for coordinated federal promotion of the tax credit. The Commerce, Labor, and Treasury departments would develop and launch a public awareness campaign to ensure companies know about the benefit and how to claim it.
The agency-run outreach would include informational webinars, publications, and multilingual materials distributed through small business development centers, trade groups, and job boards. This multi-agency approach reflects lessons from previous tax credit programs where limited awareness reduced utilization rates, particularly among smaller businesses without dedicated tax planning resources.
“This workforce tax credit gives them the training they need to compete for the high-paying tech jobs of tomorrow, right here at home,” Lawler said in the announcement.
Bipartisan Workforce Focus
The bill represents a bipartisan consensus that AI skills development has become critical to U.S. economic competitiveness. Rather than leaving workforce adaptation to market forces, the legislation combines financial incentives with coordinated federal support to democratize access to AI training opportunities.
The proposal differs from earlier AI policy discussions that centered primarily on regulation, safety protocols, and potential risks. By emphasizing economic opportunity and worker preparedness, the bill treats AI as a tool for productivity enhancement that requires proactive workforce investment.
Gottheimer’s role as co-chair of the House Commission on Artificial Intelligence and the Innovation Economy indicates that workforce development has become a central focus of congressional AI policy work. The commission’s involvement suggests the bill emerged from broader discussions about how to position the United States competitively in AI development and deployment.
What Businesses Should Consider
Companies should begin evaluating their current AI training investments to identify which programs would qualify if the legislation passes. Organizations with existing training initiatives may be able to claim credits for those expenses, depending on whether the final bill includes retroactive provisions.
Businesses should prepare documentation systems to track qualifying expenses across the categories outlined in the bill. This includes maintaining records for external training costs, in-house program development, employee time spent in training, and related materials and resources.
For small businesses and startups, the federal outreach campaign will be particularly valuable. These organizations often lack awareness of available tax incentives and may benefit from engaging with small business development centers and trade associations that will distribute information about the credit.
The bill has been introduced but faces the standard legislative process before becoming law. Companies interested in the credit should monitor the bill’s progress through Congress and any modifications to eligibility requirements or credit amounts that may occur during committee review and floor consideration.
Source
House bill seeks AI workforce tax credits, agency-led outreach | Fedscoop