PETITION OF:

SECTION 1. Chapter 62 of the General Laws as appearing in the 2004 Official Edition, is hereby amended by adding after section 6J as so appearing, the following new section:-

Section 6K. (a) For the purposes of this section, the following terms shall have the following meanings unless the context clearly requires otherwise:

“Taxpayer” a person, firm, partnership, trust, limited liability company or other entity subject to the income tax imposed by the provisions of this chapter.

(b) A taxpayer shall be allowed a credit as hereinafter provided against its tax due under this chapter equal to ten percent of qualifying job training expenses. Qualifying job training expenses are those costs directly incurred for employer-provided or employer-sponsored training programs designed to provide, upgrade or enhance the skills and knowledge of employees. Such training programs, including but not limited to basic English language and math skills, academic and equivalency programs and employment-related technical skills shall be conducted for employees employed by the corporation at a location in the commonwealth. Such training expenses are limited to expenses for tuition, training instructors and instructional materials and shall not include the wages paid to an employee

during the time of instruction and may include expenses for the construction, acquisition or maintenance of equipment or facilities used for training purposes.

No money expended as matching funds for a state-sponsored workforce development grant program shall qualify for the credit under this section. A taxpayer claiming a credit under this section shall furnish such information relative to the credit as may be requested by the commissioner in a form approved by him, and the commissioner shall promulgate such regulations as are necessary to implement this section.

SECTION 2. Chapter 63 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by adding after section 31K as so appearing, the following new section:-

Section 31L. A corporation shall be allowed a credit as hereinafter provided against its excise due under this chapter equal to ten percent of qualifying job training expenses. Qualifying job training expenses are those costs directly incurred for employer-provided or employer-sponsored training programs designed to provide, upgrade or enhance the skills and knowledge of employees. Such training programs, including but not limited to basic English language and math skills, academic and equivalency programs and employment-related technical skills shall be conducted for employees employed by the corporation at a location in the commonwealth. Such training expenses are limited to expenses for tuition, training instructors and instructional materials and shall not include the wages paid to an employee during the time of instruction and may include expenses for the construction, acquisition or maintenance of equipment or facilities used for training purposes.

The credit allowed under this section shall not reduce the excise to less than the amount due under subsection (b) of section 32 or subsection (b) of section 39 of this chapter. The provisions of section 32C of this chapter shall not apply to the credit allowed by this section. No money expended as matching funds for a state-sponsored workforce development grant program shall qualify for the credit under this section. A corporation claiming a credit under this section shall furnish such information relative to the credit as may be requested by the commissioner in a form approved by him, and the commissioner shall promulgate such regulations as are necessary to implement this section.

SECTION 3. This act shall take effect for taxable years ending on or after December 31, 2006.