(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:

45U. Career and technical education credit

(a) In general

For the purposes of section 38, in the case of a small business concern (as such term is defined under section 3 of the Small Business Act), the career and technical education credit determined under this section for any taxable year is an amount equal to the sum of—

(1)

the amount equal to 50 percent of the qualified wages paid by the taxpayer during the taxable year, plus

(2)

the amount equal to the qualified workmen’s compensation expenses of the taxpayer for the taxable year.

(b) Limitation

(1) In general

The amount of credit determined under subsection (a) shall not exceed $10,000 for any taxpayer in any taxable year.

(2) Related party

For purposes of paragraph (1), taxpayers which are treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414 shall be treated as a single taxpayer.

(c) Qualified employee

For purposes of this section, the term qualified employee means, with respect to an employer, an employee who—

(1)

has not attained the age of 21 as of the last day of the taxable year, or

(2)

is—

(A)

participating in a registered apprenticeship program, as defined in section 3131(e)(3)(B), or

(B)

enrolled, during such taxable year, in—

(i)

any course of study relating to the trade or business of such employer at a community college which complies with any applicable State or local licensing requirements necessary to issue associate’s degrees, or

(ii)

any career training or vocational program (including career and technical education programs of a high school) relating to the trade or business of the employer.

(d) Qualified workmen’s compensation expenses

For purposes of this section, the term qualified workmen’s compensation expenses means amounts paid or incurred by the taxpayer during the taxable year for premiums relating to an insurance policy (or the appropriate portion of such policy) which insures the taxpayer against claims under a workmen's compensation law of the United States, any State, the District of Columbia, or the Commonwealth of Puerto Rico in relation to the employment of a qualified employee.

(b) Credit To be part of general business credit

Section 38(b) of such Code is amended by striking plus at the end of paragraph (32), by striking the period at the end of paragraph (33) and inserting , plus, and by adding at the end the following new paragraph:

(34)

in the case of small business concern (as such term is defined under section 3 of the Small Business Act), the career and technical education credit determined under section 45U(a).

(c) Clerical amendment

The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 45T the following new item:

(d) Effective date

The amendments made by this section shall apply amounts paid or incurred in taxable years beginning after December 31, 2025.