AI Workforce Training Act
- Sponsor
- Rep. Gottheimer, Josh [D-NJ-5]
- Committees
- Ways and Means Committee (primary)
- Last action
- Feb 13, 2026
Bottom line
This bill aims to incentivize businesses to upskill their workforce in artificial intelligence, fostering a more AI-literate economy through tax relief and government promotion.
What it actually does
This bill establishes a new federal tax credit for businesses that invest in artificial intelligence (AI) training for their employees. The credit covers 30% of qualified expenses, up to $2,500 per employee, for accredited AI programs, employee wages during training, and in-house AI training development. It also mandates a public outreach campaign and annual reports to Congress on the credit's effectiveness.
Proponents argue
Proponents argue this bill is crucial for ensuring the American workforce remains competitive in an increasingly AI-driven global economy. They contend that providing a tax credit will encourage businesses, especially small and medium-sized enterprises, to invest in necessary AI training, preventing job displacement and fostering innovation. It directly addresses the skills gap and supports economic growth.
Opponents contend
Opponents might argue that a tax credit is an inefficient way to address workforce development, potentially subsidizing training that businesses would undertake anyway or that may not lead to tangible economic benefits. They might also raise concerns about the cost to federal revenue and the potential for abuse, suggesting that direct grants or educational partnerships might be more targeted and effective.
The bill is concise and easily understandable, allowing for quick evaluation by any interested reader.
Section 2(a), adding new section 45BB(a) to the Internal Revenue Code.
Creation of a 30% Workforce AI Training Credit
This provision establishes a new tax credit for businesses, allowing them to claim 30% of the costs they incur for training their employees in artificial intelligence. This directly reduces their tax liability, making AI upskilling more financially attractive.
Supporters argue
Supporters argue that a direct tax credit is a powerful incentive for businesses to invest in their workforce's future, ensuring employees gain critical AI skills needed for modern jobs and economic competitiveness.
Critics contend
Critics might contend that a 30% credit, even with a cap, could be a significant cost to the Treasury, potentially benefiting larger companies more or subsidizing training that would occur regardless.
Tradeoffs
Balances the desire to incentivize AI training with the fiscal cost of a new tax credit and the potential for market distortion.
Section 2(a), adding new section 45BB(b) to the Internal Revenue Code.
$2,500 Per-Employee Cap with Inflation Adjustment
This provision limits the tax credit to a maximum of $2,500 per employee per year. To ensure the credit's value isn't eroded over time, it includes an annual inflation adjustment for taxable years beginning after 2026, linked to the cost-of-living adjustment.
Section 2(a), adding new section 45BB(c) to the Internal Revenue Code.
Broad Definition of Eligible AI Training Expenses
This section defines what types of expenses qualify for the tax credit. It includes costs for employee enrollment or attendance at accredited AI training programs (like workshops, certificate programs, courses on prompt engineering, data literacy, machine learning fundamentals, or AI ethics), the wages paid to employees while they are attending such training, and expenses related to developing or providing in-house AI training.
Section 2(a), adding new section 45BB(d) to the Internal Revenue Code.
Prevention of Double Benefits
This provision prevents taxpayers from claiming multiple tax benefits for the same qualified AI training expenses. Specifically, if a credit is allowed under this section, no other credit or deduction can be claimed for those expenses. Additionally, if the expenses were used to determine the basis of any property, that basis must be reduced by the amount of the credit.
Section 3.
Mandated Public Outreach and Annual Reporting
This section requires the Secretaries of the Treasury, Labor, and Commerce to jointly develop and implement a public outreach campaign within 180 days of the bill's enactment. The campaign will promote awareness of the new AI training tax credit through publications, webinars, and multilingual materials distributed via small business development centers, trade associations, and workforce boards. Furthermore, these Secretaries must submit an annual report to Congress, starting 360 days after enactment, detailing the campaign's activities and measurable outcomes.