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[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5664 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 5664
To provide for the retraining and support of workers displaced by
automation technologies or artificial intelligence, to require Federal
action during periods of elevated unemployment, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 30, 2026
Mr. Schatz (for himself and Mr. Booker) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To provide for the retraining and support of workers displaced by
automation technologies or artificial intelligence, to require Federal
action during periods of elevated unemployment, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Federal Undertaking to Track,
Upskill, and Retrain for Employment of Workers Act'' or the ``FUTURE of
Workers Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Artificial intelligence.--The term ``artificial
intelligence'' has the meaning given the term in section 5002
of the National Artificial Intelligence Initiative Act of 2020
(15 U.S.C. 9401).
(2) Covered technology.--The term ``covered technology''
means automation technologies or artificial intelligence.
SEC. 3. GOVERNMENT ACTION DURING PERIODS OF UNEMPLOYMENT.
The Employment Act of 1946 (15 U.S.C. 1021 et seq.) is amended by
adding at the end the following:
``SEC. 12. GOVERNMENT ACTION DURING PERIODS OF UNEMPLOYMENT.
``(a) Definitions.--In this subsection:
``(1) Agency.--The term `agency' has the meaning given the
term in section 551 of title 5, United States Code.
``(2) Quarter.--The term `quarter' means one of the
following 3-month periods:
``(A) January through March.
``(B) April through June.
``(C) July through September.
``(D) October through December.
``(3) Rate of unemployment.--The term `rate of
unemployment' means, with respect to a quarter, the average of
the seasonally adjusted national monthly rates of total
unemployment for the 3 months of the quarter, as published by
the Commissioner of Labor Statistics.
``(b) 6 Percent Unemployment.--During the period beginning on the
date on which the Secretary of Labor determines that the rate of
unemployment has exceeded 6 percent during 2 consecutive quarters and
ending on the date on which the Secretary of Labor determines that the
rate of unemployment has been less than 6 percent for 2 consecutive
quarters, the head of each agency administering a discretionary grant
or loan program shall consider the employment impacts of a
discretionary grant or loan when reviewing applications for the
discretionary grant or loan.
``(c) 7.5 Percent Unemployment.--During the period beginning on the
date on which the Secretary of Labor determines that the rate of
unemployment has exceeded 7.5 percent during 2 consecutive quarters and
ending on the date on which the Secretary of Labor determines that the
rate of unemployment has been less than 7.5 percent for 2 consecutive
quarters--
``(1) the chair of the Council of Economic Advisers shall
convene an emergency interagency taskforce to address increases
in unemployment composed of each head of an agency who is a
member of the President's Cabinet;
``(2) the Comptroller General of the United States shall--
``(A) conduct a review of the activities of each
agency; and
``(B) provide recommendations on how to alter those
activities to incentivize public and private sector
employment; and
``(3) the Director of the Congressional Budget Office shall
assign a score to each bill or joint resolution for which the
Director of the Congressional Budget Office prepares a
statement under section 424(a) of the Congressional Budget Act
of 1974 (2 U.S.C. 658c(a)) during that period with respect to
anticipated employment impacts.
``(d) 9 Percent Unemployment.--During the period beginning on the
date on which the Secretary of Labor determines that the rate of
unemployment has exceeded 9 percent during 2 consecutive quarters and
ending on the date on which the Secretary of Labor determines that the
rate of unemployment has been less than 9 percent for 2 consecutive
quarters, the Board of Governors of the Federal Reserve System shall
prioritize the maximum employment mandate of the Federal Reserve System
in its activities.''.
SEC. 4. WORKER ADAPTATION AND TRAINING PROGRAM.
(a) Definitions.--In this section:
(1) Covered worker.--The term ``covered worker'' means a
worker whom the Secretary determines--
(A) has attested that--
(i) the worker's employment (or, for a
recent graduate, their planned employment) has
been terminated or otherwise impacted by the
adoption of covered technology rather than for
cause; and
(ii)(I) for a worker who is not a recent
graduate, the termination or impact occurred
within the 1-year period ending on the date of
the determination under this paragraph; or
(II) the worker is a recent graduate as of
the date of the determination under this
paragraph; or
(B) is employed, or otherwise engaged in labor or
services for remuneration, in a position that is an at-
risk occupation listed in the most recently published
list under section 7(a)(2).
(2) Employment.--The term ``employment'' includes
engagement in labor or services for remuneration without regard
to whether the individual performing the labor or services is
an employee.
(3) In-demand industry sector or occupation.--The term
``in-demand industry sector or occupation'' has the meaning
given the term in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102).
(4) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
(5) Local area; local board; one-stop operator.--The terms
``local area'', ``local board'', and ``one-stop operator'' have
the meanings given such terms in section 3 of the Workforce
Innovation and Opportunity Act.
(6) Recent graduate.--The term ``recent graduate'' means an
individual who has successfully completed all requirements for
a postsecondary degree, diploma, certificate, or recognized
vocational or professional training program at an institution
of higher education during the preceding 1-year period.
(7) Registered apprenticeship.--The term ``registered
apprenticeship'' means an apprenticeship registered under the
Act of August 16, 1937 (commonly known as the ``National
Apprenticeship Act''; 50 Stat. 664, chapter 663; 29 U.S.C. 50
et seq.).
(8) Secretary.--The term ``Secretary'' means the Secretary
of Labor.
(9) State agency.--The term ``State agency'' has the
meaning given the term in section 2 of the Wagner-Peyser Act
(29 U.S.C. 49a).
(10) State board; training services.--The terms ``State
board'' and ``training services'' have the meanings given such
terms in section 3 of the Workforce Innovation and Opportunity
Act.
(11) Worker.--The term ``worker'' includes an employee, an
independent contractor, a gig worker, an unemployed individual,
and a recent graduate.
(b) General Authority.--
(1) In general.--The Secretary of Labor shall establish and
administer, within the United States Employment Service, a
Worker Adaptation and Training Program (referred to in this
section as the ``Program''), through which the Secretary shall
provide each eligible worker as determined under subsection
(d)(1) participating in the Program the services and support
described in subsection (d)(3).
(2) Administration.--In administering the Program, the
Secretary shall, to the maximum extent practicable and, as
applicable, through agreements with State agencies, State
boards, local boards, and one-stop operators, deliver such
services and support through existing workforce development
infrastructure, including one-stop delivery systems under
section 121 of the Workforce Innovation and Opportunity Act (29
U.S.C. 3151) and State employment service offices.
(c) In-Demand Industry Sectors and Occupations.--
(1) Review.--In consultation with the Assistant Secretary
of Labor for Employment and Training and the Commissioner of
Labor Statistics, the Secretary shall--
(A) review the in-demand industry sectors and
occupations specified in State plans under section
102(b)(1)(A)(i) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3112(b)(1)(A)(i)); and
(B) actively monitor the skill needs for such
sectors and occupations and corresponding relevant
opportunities for training services.
(2) Retraining projects.--As a result of the review under
paragraph (1), the Secretary shall utilize available funding
under this Act to create new, or to expand or supplement
existing, retraining projects with training services in in-
demand industry sectors or occupations, including in various
local areas, to train participants in the Program for labor
market needs.
(3) Directory.--In carrying out this section, the Secretary
shall maintain a directory of retraining projects described in
this subsection, and actively work to place participants in the
Program in those projects.
(4) Collaboration.--In carrying out this subsection, the
Secretary shall collaborate with labor-management partnerships
and labor organizations, and assist in the creation of such
partnerships and labor organization-run retraining projects,
including registered apprenticeships.
(d) Eligible Workers.--
(1) Applications.--To be eligible to participate in the
Program, a worker shall--
(A) be actively seeking employment, on the date on
which the worker submits an application under
subparagraph (B); and
(B) submit an application to the Secretary at such
time, in such manner, and containing such information
as the Secretary may require, including--
(i) information on their work experience,
including their title, job responsibilities,
and work location, on their educational
history, and on their dependents; and
(ii) attestations that--
(I) the worker is a covered worker;
(II) the worker will be either
receiving training services or actively
seeking employment while in the
Program; and
(III) the worker is not receiving
unemployment compensation under Federal
or State law, or will stop receiving
such compensation if accepted to
participate in the Program.
(2) Decision on applications.--Not later than 30 days after
receiving an application under paragraph (1)(B), the Secretary
shall review, and approve or deny, the application.
(3) Services and support.--A participant in the Program
shall receive--
(A) individual career counseling, which may include
staff-assisted services described in section
652.207(b)(2)(iii) of title 20, Code of Federal
Regulations, and provided under section 7 of the
Wagner-Peyser Act (29 U.S.C. 49f);
(B) retraining in an in-demand industry sector or
occupation through training services (in which the
participant may immediately enroll once approved for
participation in the Program);
(C) if relocation is required for participation in
the Program or for placement in qualified employment as
described in paragraph (5)(A), a one-time payment of
relocation assistance in an amount of not more than
$10,000 (which maximum amount shall be adjusted each
year for inflation beginning 1 year after the date of
enactment of this Act);
(D) when not placed in qualified employment as
described in paragraph (5)(A), financial assistance, to
be known as ``New Foundations Support Payments'', which
shall be made monthly and in an amount that, calculated
annually--
(i) in the case of a recent graduate, shall
be not more than the State median wage for the
State in which the participant resides; and
(ii) in the case of a participant who is
not a recent graduate, shall be not more than
85 percent of the participant's income in the
full calendar year preceding--
(I) in the case of a worker
described in subsection
(a)(2)(A)(ii)(I), the date of the
termination or impact involved; or
(II) in the case of a worker
described in subsection (a)(2)(B), the
date on which the worker applies for
participation in the Program;
(E) at the option of the State in which the
participant resides, medical assistance for the
participant and dependents of the participant under the
State plan (or a waiver of such plan) under title XIX
of the Social Security Act (42 U.S.C. 1396 et seq.), in
accordance with the amendments made by paragraph (4);
(F) if applicable, wage replacement assistance in
accordance with paragraph (5)(B); and
(G) ongoing information from the Secretary on
entrepreneurship resources provided by the Small
Business Administration, including information related
to--
(i) the loan and grant programs of the
Small Business Administration, including the
business loan and microloan programs under
subsections (a) and (m), respectively, of
section 7 of the Small Business Act (15 U.S.C.
636), and applicable set-aside funds for
participants in the Program; and
(ii) assistance provided by resource
partners of the Small Business Administration,
including--
(I) small business development
centers described in section 21 of the
Small Business Act (15 U.S.C. 648);
(II) women's business centers
described in section 29 of that Act (15
U.S.C. 656);
(III) the Service Corps of Retired
Executives under section 8(b)(1) of
that Act (15 U.S.C. 637(b)(1)); and
(IV) the Veteran Business Outreach
Centers described in section 32 of that
Act (15 U.S.C. 657b).
(4) Optional medicaid coverage for watp participants and
their dependents.--
(A) In general.--Section 1902(a)(10)(A)(ii) of the
Social Security Act (42 U.S.C. 1396a(a)(10)(A)(ii)) is
amended--
(i) in subclause (XXII), by striking ``or''
after the semicolon;
(ii) in subclause (XXIII), by inserting
``or'' after the semicolon; and
(iii) by inserting after subclause (XXIII)
the following:
``(XXIV) who are described in
subsection (zz) (relating to
participants in the Worker Adaptation
and Training Program and their
dependents);''.
(B) Group described.--Section 1902 of the Social
Security Act (42 U.S.C. 1396a) is amended by adding at
the end the following:
``(zz) WATP Participants and Dependents.--
``(1) In general.--Individuals described in this subsection
are individuals who--
``(A) are not described in subsection
(a)(10)(A)(i);
``(B) are participants in the Worker Adaptation and
Training Program established in section 4 of the FUTURE
of Workers Act who, subject to paragraph (2), have not
been placed in qualified employment (as described in
section 4(d)(5)(A) of such Act) or are dependents of
such participants; and
``(C) are not otherwise covered under creditable
coverage, as defined in section 2704(c) of the Public
Health Service Act.
``(2) Extension of eligibility for 6 months after placement
in qualified employment.--An individual described in paragraph
(1), and any dependent of such an individual, for whom a State
has elected to provide medical assistance under the State plan
approved under this title (or a waiver of such plan) shall
remain eligible for medical assistance during the 6-month
period that begins on the date the individual is placed in, and
begins, qualified employment (as described in section
4(d)(5)(A) of the FUTURE of Workers Act), without any
reapplication for benefits under the State plan (or waiver).''.
(C) Exclusion from income limitation.--Section
1903(f)(4) of the Social Security Act (42 U.S.C.
1396b(f)(4)) is amended by inserting
``1902(a)(10)(A)(ii)(XXIV),'' after
``1902(a)(10)(A)(ii)(XXII),''.
(D) Definition of medical assistance.--Section
1905(a) of the Social Security Act (42 U.S.C. 1396d(a))
is amended in the matter preceding paragraph (1)--
(i) in clause (xvii), by striking ``or''
after ``such subsection'';
(ii) in clause (xviii), by inserting ``or''
after ``age'';
(iii) by inserting after clause (xviii) the
following:
``(xiv) individuals described in section 1902(zz),''; and
(iv) by realigning the left margins of
clauses (xvi) and (xviii) so they align with
the left margin of clause (xvii).
(E) Presumptive eligibility option.--Section
1920(e) of such Act (42 U.S.C. 1396r-1(e)) is amended
by striking ``or clause (ii)(XX)'' and inserting
``clause (ii)(XX), or clause (ii)(XXIV)''.
(5) Wage replacement assistance.--
(A) Qualified employment.--For purposes of this
subparagraph, a participant or former participant of
the Program shall be considered to be placed in
qualified employment if--
(i) the individual is a participant who
receives training services through an
employment position in the Program, such as a
registered apprenticeship or on-the-job
training position; or
(ii) the individual is a former participant
who, after receiving training services through
the Program that prepare the individual for a
position in an in-demand industry sector or
occupation, is placed in such a position.
(B) Payments.--
(i) In general.--Except as provided in
clause (ii), in the case of an individual who
is placed in qualified employment as described
in subparagraph (A) and is not a recent
graduate, the Secretary shall pay to such
individual--
(I) for each of the first 3 years
of the qualified employment, 75 percent
of the difference between--
(aa) the wages received by
the individual for the position
of such qualified employment
for such year; and
(bb) wages received by the
individual calculated for 1
year based on--
(AA) in the case of
a worker described in
subsection
(a)(2)(A)(ii)(I), the
annual rate of wages of
the individual for the
position to which the
termination or impact
involved applies as of
the date of such
termination or impact;
or
(BB) in the case of
a worker described in
subsection (a)(2)(B),
the annual rate of
wages of the individual
for the position
described in such
subsection as of the
date on which the
worker applies for
participation in the
Program;
(II) for the fourth year of the
qualified employment, 50 percent of
such difference; and
(III) for the fifth year of the
qualified employment, 25 percent of
such difference.
(ii) Limitation.--No payment shall be made
under this subparagraph to an individual for a
year if, for that year, the individual received
an amount in wages for the position of the
qualified employment that is equal to or more
than the amount in wages received by the
individual calculated for 1 year based on--
(I) in the case of a worker
described in subsection
(a)(2)(A)(ii)(I), the annual rate of
wages of the individual for the
position to which the termination or
impact involved applies as of the date
of such termination or impact; or
(II) in the case of a worker
described in subsection (a)(2)(B), the
annual rate of wages of the individual
for the position described in such
subsection as of the date on which the
worker applies for participation in the
Program.
(C) State or local government employers.--
(i) In general.--If an individual described
in subparagraph (A) is placed in qualified
employment with a State or local government,
the Secretary shall, for a period of 5 years
beginning on the date of the placement, pay to
the corresponding government 25 percent of the
cost of their wages and fringe benefits.
(ii) Nondisplacement.--A State or local
government shall not receive payments under
clause (i) with respect to an individual
described in subparagraph (A) placed in
qualified employment with the State or local
government if--
(I) employing the individual will
result in the layoff or partial
displacement (such as a reduction in
hours, wages, or employment benefits)
of an existing employee or position of
the employer;
(II) the individual will assume any
of the duties or responsibilities of an
employee who is participating in a
strike, collective bargaining, or
activities for representation by a
labor organization;
(III) employing the individual
infringes upon the promotional
opportunities of an existing employee
of the employer; or
(IV) the individual will perform
the same work or substantially the same
work as that performed by any employee
who has been laid off or partially
displaced and has not received an offer
from the employer to be restored to the
position the employee had immediately
prior to being laid off or partially
displaced.
(D) Collective bargaining agreements.--In the case
an individual described in subparagraph (A) is placed
in qualified employment in position that is covered by
a collective bargaining agreement, nothing in this
section shall alter the applicability of any wage or
benefit requirements of such collective bargaining
agreement with respect to such position.
(6) Period.--Except as provided in paragraph (5), a
participant may participate in the Program, and receive the
services and support described in this subsection for a
participant, for not more than 3 years.
(7) Loans and grants from the small business
administration.--For purposes of subparagraphs (A) and
(B)(ii)(II) of paragraph (1), an individual who receives a loan
or grant from the Small Business Administration, including
under the business loan and microloan programs established
under subsections (a) and (m), respectively, of section 7 of
the Small Business Act (15 U.S.C. 636), shall be deemed, for
the 1-year period following the receipt of such loan or grant,
to be actively seeking employment.
(e) Advisory Committee.--
(1) Establishment.--The Secretary shall establish in the
Department of Labor the Worker Adaptation and Training Advisory
Committee (referred to in this section as the ``Committee'').
(2) Membership.--The Committee shall be composed of--
(A) 3 representatives of labor organizations,
appointed by the Secretary;
(B) 2 representatives of businesses, with
management authority, appointed by the Secretary;
(C) 2 representatives from State boards or local
boards;
(D) the Director of the Office of Personnel
Management;
(E) the Director of the National Institute of
Standards and Technology; and
(F) the Director of the National Science
Foundation.
(3) Duties.--The Committee shall make recommendations to
the Secretary on the placement of workers in retraining
projects under the Program.
(4) Personnel matters.--
(A) Compensation of members.--Except as provided in
subparagraph (B), no member of the Committee may be
compensated for their service on the Committee.
(B) Travel expenses.--A member of the Committee
shall be allowed travel expenses, including per diem in
lieu of subsistence, at rates authorized for employees
of agencies under subchapter I of chapter 57 of title
5, United States Code, while away from their homes or
regular places of business in the performance of
services for the Committee.
(C) Staff.--
(i) In general.--The Committee may, without
regard to the civil service laws (including
regulations), appoint and terminate an
executive director and such other additional
personnel as may be necessary to enable the
Committee to perform its duties, except that
the employment of an executive director shall
be subject to confirmation by the Committee.
(ii) Compensation.--The Committee may fix
the compensation of the executive director and
other personnel without regard to chapter 51
and subchapter III of chapter 53 of title 5,
United States Code, relating to classification
of positions and General Schedule pay rates,
except that the rate of pay for the executive
director and other personnel may not exceed the
rate payable for level V of the Executive
Schedule under section 5316 of that title.
(5) Permanent committee.--Section 1013 of title 5, United
States Code, shall not apply to the Committee.
(f) Direct Hire Authority.--The Secretary may appoint individuals
to positions necessary to administer the Program without regard to any
of sections 3309 through 3318 of title 5, United States Code.
(g) State Unemployment Insurance Records.--For purposes of
assisting in eligibility determinations and calculating payments under
this section, the Secretary shall obtain and use quarterly wage
information from State unemployment insurance wage records.
(h) Metrics System.--The Secretary shall establish a metrics system
for measuring the success of the Program.
(i) Authorization of Appropriations.--
(1) In general.--There is authorized to be appropriated to
carry out this section $60,000,000,000 for each fiscal year.
(2) Reservation.--Of the amount appropriated under
paragraph (1) for a fiscal year, the Secretary shall reserve
not more than 5 percent to administer the Program, including
for entering into agreements with State agencies, State boards,
local boards, and one-stop operators for intake, counseling,
and other services and support under this section.
(j) Amendment to Workforce Innovation and Opportunity Act.--Section
121(b)(1)(B) of the Workforce Innovation and Opportunity Act (29 U.S.C.
3151(b)(1)(B)) is amended--
(1) in clause (xii), by striking ``; and'' and inserting a
semicolon;
(2) in clause (xiii), by striking the period at the end and
inserting ``; and''; and
(3) by adding at the end the following:
``(xiv) services and support provided
through the Worker Adaptation and Training
Program under section 4 of the FUTURE of
Workers Act.''.
SEC. 5. FEDERAL WORKFORCE.
(a) Identification of High-Demand Position Classifications and
Occupational Skill Gaps.--Not later than 120 days after the date of
enactment of this Act, and annually thereafter, the Director of the
Office of Personnel Management, in conjunction with the Secretary of
Labor, shall identify high-demand Federal position classifications,
such as technology services, and occupational skill gaps in the Federal
workforce in order to facilitate the placement of participants in the
Worker Adaptation and Training Program in civil service positions.
(b) Assistance for Job Applicants.--The Director of the Office of
Personnel Management shall work with the Secretary of Labor to assist
participants in the Worker Adaptation and Training Program in applying
for civil service positions.
SEC. 6. PRIORITIZATION OF PARTICIPANTS IN SMALL BUSINESS PROGRAMS.
(a) In General.--The Administrator of the Small Business
Administration shall prioritize participants in the Worker Adaptation
and Training Program when considering applications for loans and grants
from the Administration, including under the business loan and
microloan programs established under subsections (a) and (m),
respectively, of section 7 of the Small Business Act (15 U.S.C. 636).
(b) Set-Aside.--In each fiscal year, the Administrator of the Small
Business Administration shall set aside 1.5 percent of amounts
appropriated to carry out the business loan program under section 7(a)
of the Small Business Act (15 U.S.C. 636(a)) to provide assistance to
participants in the Worker Adaptation and Training Program.
SEC. 7. COVERED TECHNOLOGY IMPACT REPORTS.
(a) In General.--Not later than 1 year after the date of enactment
of this Act, and annually thereafter, the Commissioner of Labor
Statistics, in consultation with the Assistant Secretary of Labor for
Employment and Training, the Director of the National Institute of
Standards and Technology, the Director of the National Science
Foundation, and the Director of the Bureau of Economic Analysis, shall
publish, and submit to Congress, a report regarding the adoption of
covered technology, including--
(1) occupational employment trends, as determined by the
Commissioner of Labor Statistics;
(2) a list of at-risk occupations, as determined by the
Commissioner of Labor Statistics, organized by risk level
categories reflecting near-term, mid-term, and long-term
projections;
(3) a list of demographics most likely to be impacted by
the adoption of covered technology, as determined by the
Commissioner of Labor Statistics, including demographics with
respect to protected classes, educational level of attainment,
geographic location, and earnings;
(4) information on consequences of job displacement due to
the adoption of covered technology, as determined by the
Commissioner of Labor Statistics, including on--
(A) employment status or retraining after such
displacement; and
(B) changes in position, field of work, or earnings
after such displacement;
(5) information on anticipated advancements in technology
adoption that may shape employment and hiring trends;
(6) a list of the fastest-growing occupations in the United
States during the preceding year that are--
(A) resilient to displacement or reduced work
opportunities as a result of the adoption of covered
technology; and
(B) relevant to the national and technological
competitiveness of the United States; and
(7) recommendations for actions to be taken by Congress to
better inform workforce development and employment policies,
including for purposes of identifying--
(A) work skills and occupations that are resilient
against the negative impacts of the adoption of covered
technology;
(B) best practices for skills training efforts and
initiatives by employers that enable workers to
successfully transition to new positions within
workplaces;
(C) best practices for skills training efforts and
initiatives that enable workers to successfully
transition to new positions following a layoff from a
prior position; and
(D) best practices for mitigating displacement-
related hardships on workers.
(b) Definitions.--In this section:
(1) At-risk occupation.--The term ``at-risk occupation''
means a category of jobs or professions that is considered
highly susceptible to displacement by the adoption of covered
technology.
(2) Protected class.--The term ``protected class'' means a
group of individuals sharing a common characteristic or
identity who are legally protected against discrimination
under--
(A) title VII of the Civil Rights Act of 1964 (42
U.S.C. 2000e et seq.);
(B) title I of the Americans with Disabilities Act
of 1990 (42 U.S.C. 12111 et seq.); or
(C) the Age Discrimination in Employment Act of
1967 (29 U.S.C. 621 et seq.).
SEC. 8. EXPANSION OF WARN ACT NOTICES.
(a) Contents of Notice of Plant Closing or Mass Layoff.--Section 3
of the Worker Adjustment and Retraining Notification Act (29 U.S.C.
2102) is amended by adding at the end the following:
``(e) Contents of Notice.--The written notice under subsection (a)
shall--
``(1) disclose whether the plant closing or mass layoff is
substantially due to the adoption of covered technology (as
defined in section 2 of the FUTURE of Workers Act); and
``(2) include information on employee retraining,
unemployment resources, and transition resources, including
support and services through the Worker Adaptation and Training
Program under section 4 of such Act.''.
(b) Increase in Notification Period.--The Worker Adjustment and
Retraining Notification Act (29 U.S.C. 2101 et seq.) is amended--
(1) in section 3 (29 U.S.C. 2102)--
(A) in subsection (a), by striking ``60-day'' and
inserting ``120-day''; and
(B) in subsection (b)--
(i) in paragraph (1), by striking ``60-
day'' and inserting ``120-day''; and
(ii) in paragraph (2)(A), by striking ``60-
day'' and inserting ``120-day''; and
(2) in section 5(a)(1) (29 U.S.C. 2104(a)(1)), in the
matter following subparagraph (B), by striking ``60 days'' and
inserting ``120 days''.
(c) Applicability.--The amendments made by this section shall apply
with respect to any plant closing or mass layoff that occurs 180 days
after the date of enactment of this Act.
SEC. 9. EMPLOYER-PROVIDED UPSKILLING CREDIT.
(a) In General.--
(1) Determination of credit.--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:
``SEC. 45BB. EMPLOYEE UPSKILLING CREDIT.
``(a) In General.--For purposes of section 38, the employee
upskilling credit determined under this section for any taxable year is
an amount equal to 25 percent of qualified training expenditures for
the taxable year.
``(b) Qualified Training Expenditures.--
``(1) In general.--The term `qualified training
expenditures' means any amount paid or incurred by the taxpayer
for the qualified training of any employee working in an at-
risk occupation to transition them to another occupation.
``(2) Exclusion.--The term `qualified training
expenditures' shall not include any amount paid or incurred for
meals, lodging, transportation, or any other services which are
incidental to qualified training.
``(c) Other Definitions.--In this section--
``(1) At-risk occupation.--The term `at-risk occupation'
means an occupation listed in the most recently published list
under section 7(a)(2) of the FUTURE of Workers Act.
``(2) Qualified training.--
``(A) In general.--In this section, the term
`qualified training' means training which results in
the attainment of a recognized postsecondary credential
and which is provided through--
``(i) a registered apprenticeship,
``(ii) a program of training services which
is on a State list established under section
122(d) of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3152(d)),
``(iii) a program which is conducted by an
area career and technical education school, a
community college, or a labor organization, or
``(iv) a program which is sponsored and
administered by an employer, industry trade
association, industry or sector partnership, or
labor organization.
``(B) Related definitions.--For purposes of
subparagraph (A):
``(i) Area career and technical education
school.--The term `area career and technical
education school' means such a school, as
defined in section 3 of the Carl D. Perkins
Career and Technical Education Act of 2006 (20
U.S.C. 2302), which participates in a program
under that Act (20 U.S.C. 2301 et seq.).
``(ii) Community college.--The term
`community college' has the meaning given the
term in section 5002 of the National Artificial
Intelligence Initiative Act of 2020 (15 U.S.C.
9401).
``(iii) Industry or sector partnership.--
The term `industry or sector partnership' has
the meaning given such term in section 3 of the
Workforce Innovation and Opportunity Act (29
U.S.C. 3102).
``(iv) Industry trade association.--The
term `industry trade association' means an
organization which--
``(I) is described in paragraph (3)
or (6) of section 501(c) of the
Internal Revenue Code of 1986 and
exempt from taxation under section
501(a) of such Code, and
``(II) is representing an industry.
``(v) Labor organization.--The term `labor
organization' means a labor organization,
within the meaning of the term in section
501(c)(5) of the Internal Revenue Code of 1986.
``(vi) Recognized postsecondary
credential.--The term `recognized postsecondary
credential' means a credential consisting of an
industry-recognized certificate or
certification, a certificate of completion of a
registered apprenticeship, a license recognized
by the State involved or Federal Government, or
an associate or baccalaureate degree.
``(vii) Registered apprenticeship.--The
term `registered apprenticeship' means an
apprenticeship registered under the Act of
August 16, 1937 (commonly known as the
`National Apprenticeship Act'; 50 Stat. 664,
chapter 663; 29 U.S.C. 50 et seq.).''.
(2) Credit part of general business credit.--Section 38(b)
of the Internal Revenue Code of 1986 is amended by striking
``plus'' at the end of paragraph (40), by striking the period
at the end of paragraph (41) and inserting ``, plus'', and by
adding at the end the following new paragraph:
``(42) the employee upskilling credit determined under
section 45BB(a).''.
(3) Clerical amendment.--The table of sections for 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 item:
``Sec. 45BB. Employee upskilling credit.''.
(b) Credit Allowed Against Alternative Minimum Tax.--Subparagraph
(B) of section 38(c)(4) of the Internal Revenue Code of 1986 is
amended--
(1) by redesignating clauses (x), (xi), and (xii) as
clauses (xi), (xii), and (xiii), respectively, and
(2) by inserting after clause (ix) the following new
clause:
``(x) the credit determined under section
45BB with respect to an eligible small business
(as defined in paragraph (5)(A), after
application of rules similar to the rules of
paragraph (5)(B)),''.
(c) Regulations Relating to Postsecondary Credentials.--Not later
than 1 year after the date of enactment of this Act--
(1) the Secretary of Labor, in consultation with the
Secretary of the Treasury, shall issue regulations or other
guidance applying the definition of the term ``recognized
postsecondary credential'' as provided in section 3 of the
Workforce Innovation and Opportunity Act (29 U.S.C. 3102); and
(2) the Secretary of the Treasury, in consultation with the
Secretary of Labor, shall issue regulations or other guidance
applying the definition of the term ``recognized postsecondary
credential'' as provided in section 45BB(c)(2)(B) of the
Internal Revenue Code of 1986.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of enactment of this
Act.
SEC. 10. WORKPLACE DEVELOPMENT MODERNIZATION.
(a) In General.--The Secretary of Labor shall--
(1) to the extent feasible, provide virtual opportunities
for individuals to participate online in workforce training
programs of the Department of Labor in order to expand the
reach of resources provided by such programs; and
(2) in conjunction with the Secretary of Commerce and
industry and nonprofit groups determined relevant by the
Secretary of Labor, provide additional online resources for job
seekers that are available on the website of the Department of
Labor.
(b) Rule of Construction.--Nothing in this section shall affect any
regulatory requirement pursuant to the Wagner-Peyser Act (29 U.S.C. 49
et seq.) addressing the provision of employment services by employees
under a merit system.
SEC. 11. EXCISE TAX ON ARTIFICIAL INTELLIGENCE SERVICES; WORKER
ADAPTATION TRUST FUND.
(a) Excise Tax.--Subtitle D of the Internal Revenue Code of 1986 is
amended by adding at the end the following new chapter:
``CHAPTER 50B--ARTIFICIAL INTELLIGENCE SERVICES
``Sec. 5000E. Tax on artificial intelligence services.
``SEC. 5000E. TAX ON ARTIFICIAL INTELLIGENCE SERVICES.
``(a) Imposition of Tax.--In the case of a covered person, there is
imposed a tax for each calendar year in an amount equal to the sum of--
``(1) 4 percent of so much of the United States AI receipts
of such person for such calendar year as exceeds $50,000,000
but does not exceed $500,000,000,
``(2) 6 percent of so much of such receipts as exceeds
$500,000,000 but does not exceed $5,000,000,000, plus
``(3) 8 percent of so much of such receipts as exceeds
$5,000,000,000.
``(b) Phase-In.--In the case of the first calendar year beginning
after the date of the enactment of this section, subsection (a) shall
be applied by substituting `2 percent', `3 percent', and `4 percent'
for `4 percent', `6 percent', and `8 percent', respectively.
``(c) Definitions.--For purposes of this section--
``(1) Covered artificial intelligence model.--The term
`covered artificial intelligence model' means a model developed
through artificial intelligence (as defined in section 5002 of
the National Artificial Intelligence Initiative Act of 2020 (15
U.S.C. 9401)) and trained using a quantity of computing power
greater than or equal to 10\2\<SUP>5</SUP> integer or floating-
point operations, as adjusted annually by the Secretary, in
coordination with the Secretary of Commerce, to reflect changes
in the efficiency of training methods. Such term includes any
model the Secretary determines demonstrates capabilities
substantially equivalent to models otherwise described in this
paragraph.
``(2) Covered person.--The term `covered person' means any
person engaged in a trade or business of providing qualifying
artificial intelligence services to United States customers,
determined without regard to the place of organization,
incorporation, residence, or management of such person. All
persons treated as a single employer under subsection (a) or
(b) of section 52 shall be treated as 1 person for purposes of
this section.
``(3) Qualifying artificial intelligence services.--The
term `qualifying artificial intelligence services' means--
``(A) providing access to a covered artificial
intelligence model, including through an application
programming interface or a paid subscription,
``(B) licensing, deploying, hosting, integrating,
or operating a covered artificial intelligence model
for, or on behalf of, another person, and
``(C) any other service the commercial value of
which is substantially attributable to a covered
artificial intelligence model, as determined by the
Secretary, except that such term shall not include any
service with respect to which functionality
attributable to a covered artificial intelligence model
is incidental to the primary value of the offering.
``(4) United states ai receipts.--
``(A) In general.--The term `United States AI
receipts' means gross receipts derived from qualifying
artificial intelligence services provided to United
States customers, reduced by amounts paid or incurred
to another covered person with United States AI
receipts in excess of $50,000,000 for qualifying
artificial intelligence services resold, or
incorporated into qualifying artificial intelligence
services provided, to United States customers.
``(B) Exception.--The term `United States AI
receipts' shall not include amounts received under a
contract with the Federal Government for the provision
of qualifying artificial intelligence services to the
Federal Government.
``(5) United states customer.--The term `United States
customer' means any person with respect to which the service
involved is primarily used or consumed in the United States, as
determined under regulations or other guidance prescribed by
the Secretary.
``(d) Exemption.--No tax shall be imposed under this section on--
``(1) any organization exempt from tax under section
501(a), or
``(2) any institution of higher education (as defined in
section 101 or 102 of the Higher Education Act of 1965 (20
U.S.C. 1001, 1002)).
``(e) Payment; Returns.--The tax imposed by subsection (a) shall be
paid in quarterly installments at such times, and reported on such
returns and in such manner, as the Secretary shall prescribe. No return
shall be required of any covered person with no liability under
subsection (a) for the calendar year.
``(f) Regulations.--The Secretary shall prescribe such regulations
and other guidance as may be necessary to carry out this section,
including regulations providing for--
``(1) the allocation of the tax imposed by subsection (a)
among persons treated as 1 person under subsection (c)(2),
``(2) the attribution of gross receipts in the case of
offerings with both qualifying and non-qualifying components,
and
``(3) the prevention of avoidance of this section through
the fragmentation of activities, the restructuring of customer
arrangements, or the mischaracterization of receipts.''.
(b) Denial of Deduction.--Section 275(a) of the Internal Revenue
Code of 1986 is amended by inserting after paragraph (6) the following
new paragraph:
``(7) Taxes imposed by chapter 50B.''.
(c) Worker Adaptation Trust Fund.--Subchapter A of chapter 98 of
the Internal Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 9512. WORKER ADAPTATION TRUST FUND.
``(a) Creation of Trust Fund.--There is established in the Treasury
of the United States a trust fund to be known as the `Worker Adaptation
Trust Fund', consisting of such amounts as may be appropriated or
credited to such Trust Fund as provided in this section or section
9602(b).
``(b) Transfers to Trust Fund.--There are hereby appropriated to
the Worker Adaptation Trust Fund amounts equivalent to the taxes
received in the Treasury under section 5000E.
``(c) Expenditures.--Amounts in the Worker Adaptation Trust Fund
shall be available, as provided in appropriation Acts--
``(1) to carry out the Worker Adaptation and Training
Program established under section 4 of the FUTURE of Workers
Act, and
``(2) to the extent amounts in the Trust Fund for a fiscal
year exceed the amounts necessary for the purpose described in
paragraph (1) for such fiscal year, for supplemental child
care, elder care, and workforce development programs serving
populations affected by automation technologies or artificial
intelligence.''.
(d) Clerical Amendments.--
(1) The table of chapters for subtitle D of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new item:
``Chapter 50B--Artificial Intelligence Services''.
(2) The table of sections for subchapter A of chapter 98 of
such Code is amended by adding at the end the following new
item:
``Sec. 9512. Worker adaptation trust fund''.
(e) Effective Date.--The amendments made by this section shall
apply to calendar years beginning after the date of the enactment of
this Act.
SEC. 12. WORKER ADAPTATION CONTRIBUTIONS; EXCESS DISPLACEMENT
ACCOUNTABILITY.
(a) Worker Adaptation Contributions.--Subtitle C of the Internal
Revenue Code of 1986 is amended by inserting after chapter 23A the
following new chapter:
``CHAPTER 23B--WORKER ADAPTATION CONTRIBUTIONS
``Sec. 3324. Worker adaptation contribution.
``SEC. 3324. WORKER ADAPTATION CONTRIBUTION.
``(a) Imposition.--There is hereby imposed on every covered
employer for each calendar quarter a contribution equal to the product
of--
``(1) the applicable contribution rate of such employer for
such quarter, and
``(2) the total wages paid by such employer during such
quarter with respect to employment within the United States.
``(b) Applicable Contribution Rate.--For purposes of this section--
``(1) In general.--The applicable contribution rate of a
covered employer for each calendar quarter of a calendar year
is the displacement ratio of such employer for the computation
period applicable to such calendar year, rounded to the nearest
\1/10\ of 1 percent, except that such rate shall not exceed the
maximum rate.
``(2) Displacement ratio.--The term `displacement ratio'
means, with respect to an employer for any period, the ratio
of--
``(A) the aggregate amounts charged to such
employer under subsection (d) for such period, to
``(B) the total wages paid by such employer during
such period.
``(3) Computation period.--The term `computation period'
means, with respect to any calendar year, the 12-calendar-
quarter period ending on June 30 of the preceding calendar
year.
``(4) Maximum rate.--The term `maximum rate' means 2
percent.
``(5) Employers without chargeable experience.--The
applicable contribution rate of a covered employer to which no
amount has been charged under subsection (d) for the
computation period shall be zero.
``(6) Notice of rates.--Not later than October 15 of each
calendar year, the Secretary shall notify each covered employer
of the applicable contribution rate of such employer for the
following calendar year.
``(c) Definitions.--For purposes of this chapter--
``(1) Covered employer.--The term `covered employer' means
any employer other than a small business concern, as defined in
section 5000F(h).
``(2) Covered worker.--The term `covered worker' means a
covered worker (as defined in section 4(a) of the FUTURE of
Workers Act) who is described in paragraph (2)(A)(ii)(I) of
such section and was terminated as described in such paragraph
by a covered employer.
``(3) Employer; employment.--The respective meaning of the
terms `employer' and `employment' shall be determined under
rules similar to the rules of section 3121.
``(4) Responsible employer.--The term `responsible
employer' means the covered employer that terminated a covered
worker as described in section 4(a)(2)(A)(ii)(I) of the FUTURE
of Workers Act, as identified in the worker's attestation under
section 4(a)(2)(A) of the FUTURE of Workers Act and verified in
such manner as the Secretary of Labor shall prescribe.
``(5) Wages.--The term `wages' has the meaning given such
term by section 3121(a), determined without regard to any
dollar limitation on the amount of remuneration treated as
wages.
``(d) Charging.--
``(1) In general.--There shall be charged to each
responsible employer the costs of the benefits and services
provided under section 4 of the FUTURE of Workers Act to each
covered worker, with respect to the responsible employer,
determined eligible for such benefits and services under such
section, as certified by the Secretary of Labor to the
Secretary at such times and in such manner as such Secretaries
shall jointly prescribe.
``(2) Noncharging.--No amount shall be charged under this
subsection with respect to a termination--
``(A) attributable to the sale or divestiture of a
trade or business (or a substantial portion thereof),
except as provided by the Secretary of Labor to prevent
the avoidance of this section,
``(B) occurring while the employer is a debtor in a
case under title 11, United States Code, or
``(C) attributable to natural disaster or such
other circumstances beyond the control of the employer
as the Secretary of Labor may prescribe.
``(3) Notice and opportunity to contest.--The Secretary of
Labor shall provide each responsible employer notice of each
charge proposed under this subsection and an opportunity to
contest, in such manner and within such time as the Secretary
of Labor shall prescribe, whether the termination involved is
chargeable to such employer, including on the ground that the
termination was not attributable to covered technology as
defined in section 2 of the FUTURE of Workers Act or that the
worker was not terminated from such employer. Any charge not
successfully contested shall be final for purposes of this
section.
``(4) Quarterly statements of charges.--The Secretary of
Labor shall provide to each responsible employer, not later
than 45 days after the close of each calendar quarter, a
statement of the amounts charged to such employer under this
subsection for such quarter.
``(e) Protection of Workers.--No determination with respect to the
eligibility of any worker for, or the amount or timing of, any benefit
or service under section 4 of the FUTURE of Workers Act shall be
delayed, conditioned, or reduced by reason of any dispute or contest
concerning the charging of costs under this section, and the resolution
of any such dispute or contest shall affect only the charging of costs
to the responsible employer and not the entitlement of any worker to
any such benefit or service.
``(f) Successorship; Anti-Manipulation.--
``(1) Transfer of experience.--If an employer transfers its
trade or business (or a portion thereof) to another person, and
there is substantially common ownership, management, or control
of the transferor and transferee, the charging experience and
wage history attributable to the transferred trade or business
shall be transferred to the transferee. In any other transfer
of a trade or business, such experience and history shall be
transferred to the extent provided by the Secretary.
``(2) Prohibited rate manipulation.--If a person transfers
or acquires a trade or business solely or primarily for the
purpose of obtaining a lower applicable contribution rate, the
applicable contribution rate of each person party to the
transaction shall be determined without regard to the
transaction, and each such person shall pay a penalty of
$10,000 for each calendar quarter to which such determination
applies.
``(3) Aggregation.--All persons 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 1
employer for purposes of this chapter.
``(g) Election by Nonprofit and Governmental Employers To Reimburse
in Lieu of Contributions.--
``(1) In general.--Any entity described in paragraph (2)
may elect, at such time and in such manner as the Secretary
shall prescribe, to pay for each calendar quarter, in lieu of
the contribution imposed by subsection (a), an amount equal to
the amounts charged to such employer under subsection (d) for
such quarter.
``(2) Entity described.--An entity described in this
paragraph is--
``(A) an organization which is described in section
501(c)(3) and exempt from tax under section 501(a), or
``(B) a State, a political subdivision of a State,
an Indian tribe (as defined in section 45A(c)(6)), a
Native Hawaiian organization (as defined in section
6207 of the Native Hawaiian Education Act (20 U.S.C.
7517)), or an instrumentality of any of the foregoing.
``(3) Treatment of payments.--Amounts payable under
paragraph (1) shall be assessed, collected, deposited, and
administered in the same manner as contributions imposed by
subsection (a), except that the maximum rate shall not apply to
such amounts.
``(4) Duration.--An election under this subsection shall
remain in effect for not fewer than 8 consecutive calendar
quarters and thereafter until revoked in such manner as the
Secretary shall prescribe.
``(5) United states.--The United States and any
instrumentality thereof shall be treated as having an election
in effect under this subsection.
``(6) Section 5000f inapplicable.--Section 5000F shall not
apply to any employer with an election in effect under this
subsection.
``(h) Payment; Returns.--Contributions imposed by this section
shall be paid quarterly at the time prescribed for the return of taxes
imposed by section 3111, and shall be reported on such returns and in
such manner as the Secretary shall prescribe.
``(i) Deposit.--Amounts received in the Treasury under this section
shall be deposited in the Worker Adaptation Trust Fund established
under section 9512.
``(j) Regulations.--The Secretary, in consultation with the
Secretary of Labor, shall prescribe such regulations and other guidance
as may be necessary to carry out this chapter, including regulations
governing the computation and notice of applicable contribution rates,
the resolution of charging disputes, and the prevention of avoidance of
this chapter.''.
(b) Excess Displacement Accountability.--Chapter 50B of the
Internal Revenue Code of 1986, as added by section 11 of this Act, is
amended by adding at the end the following new section:
``SEC. 5000F. EXCESS DISPLACEMENT ACCOUNTABILITY.
``(a) Imposition of Tax.--There is hereby imposed on each employer,
for each calendar quarter of the restitution period with respect to
each eliminated position of such employer, a tax equal to the amount of
tax that would have been imposed under sections 3111 and 3301
(determined without regard to the credits allowed under section 3302)
for such quarter with respect to the baseline compensation allocable to
such position if such position had not been eliminated.
``(b) Reduction in Tax.--The aggregate tax imposed by subsection
(a) on an employer for any calendar quarter shall be reduced (but not
below zero) by the amount of contributions paid by the employer under
section 3324 for such quarter.
``(c) Definitions.--For purposes of this section--
``(1) Restitution period.--The term `restitution period'
means, with respect to an eliminated position, the 5-year
period beginning on the date of the elimination of such
position, reduced as provided in subsection (d).
``(2) Eliminated position.--
``(A) In general.--The term `eliminated position'
means each domestic full-time equivalent position by
which the domestic full-time equivalent employment of
an employer during a saturation period falls below the
domestic full-time equivalent employment of such
employer as of the first day of such saturation period,
identified, and determined with appropriate adjustments
for seasonal variation, under regulations prescribed by
the Secretary.
``(B) Contractor substitution.--The termination of
employees accompanied by the substitution of
independent contractors, or of workers provided by a
staffing or outsourcing agency, performing
substantially similar services shall be treated as an
elimination of positions and shall not be treated as a
restoration.
``(C) Baseline compensation.--The term `baseline
compensation' means, with respect to an eliminated
position, the annual rate of wages and benefits in
effect for such position on the date of the
elimination.
``(D) Domestic full-time equivalent employment.--
The domestic full-time equivalent employment of an
employer shall be determined under regulations
prescribed by the Secretary, on the basis of hours of
service of employees within the United States.
``(3) Saturation period.--
``(A) In general.--The term `saturation period'
means any period of 1 or more consecutive calendar
years for each of which the uncapped displacement ratio
of the employer exceeds the maximum rate (as defined in
section 3324(b)(4)).
``(B) Uncapped displacement ratio.--The term
`uncapped displacement ratio' means, for any calendar
year, the displacement ratio determined under section
3324(b)(2) for the computation period applicable to
such calendar year, determined without regard to the
maximum rate.
``(d) Abatement Upon Restoration.--
``(1) In general.--For each domestic full-time equivalent
position restored by the employer at an annual rate of wages
and benefits equal to or greater than the baseline compensation
of an eliminated position (matched under regulations prescribed
by the Secretary), no tax shall be imposed under subsection (a)
with respect to such eliminated position for calendar quarters
beginning after the date of the restoration.
``(2) Sustained restoration; recapture.--Paragraph (1)
shall apply with respect to a restored position only if such
position is maintained for 4 consecutive calendar quarters. If
a restored position is eliminated during the 24-month period
beginning on the date of the restoration, any amount not
imposed by reason of paragraph (1) shall be assessed, with
interest determined under section 6621, and the restitution
period with respect to such position shall be applied without
regard to the period of the restoration.
``(e) Additional Corporate Surtax During Saturation.--In the case
of an employer which is a C corporation, for each of the 3 taxable
years beginning with the taxable year in which a saturation period of
such employer begins, the tax imposed by chapter 1 shall be increased
by an amount equal to the sum of--
``(1) 2 percent of so much of the taxable income of such
employer for the taxable year as does not exceed $100,000,000,
``(2) 4 percent of so much of such taxable income as
exceeds $100,000,000 but does not exceed $1,000,000,000, and
``(3) 6 percent of so much of such taxable income as
exceeds $1,000,000,000.
``(f) Recapture of Accelerated Cost Recovery.--
``(1) In general.--The tax imposed by chapter 1 on an
employer for the taxable year in which a saturation period of
such employer begins shall be increased by the aggregate excess
of--
``(A) the deductions allowed by reason of sections
168(k) and 179 with respect to automation assets placed
in service by the employer during the 5-taxable-year
period ending with such taxable year (other than any
asset previously taken into account under this
subsection), over
``(B) the deductions that would have been allowed
with respect to such assets for such period under the
alternative depreciation system of section 168(g).
``(2) Basis adjustment.--Proper adjustment shall be made to
the basis of any asset to which paragraph (1) applies, under
regulations prescribed by the Secretary.
``(3) Automation asset.--The term `automation asset' means
property (whether tangible or intangible, whether or not owned
by the taxpayer, and including rights of use or access under a
license, subscription, or service arrangement) the primary
function of which is to perform, through automation
technologies or artificial intelligence (as defined in section
5002 of the National Artificial Intelligence Initiative Act of
2020 (15 U.S.C. 9401)), 1 or more tasks previously performed by
employees of the taxpayer, including autonomous industrial
robotics, systems incorporating a covered artificial
intelligence model (as defined in section 5000E(c)(5)), and
autonomous logistics systems.
``(g) Aggregation; Anti-Arbitrage.--Rules similar to the rules of
section 3324(f) shall apply for purposes of this section, and any
transfer of automation assets, functions, or employees between persons
treated as 1 employer under such rules shall be disregarded in
determining the occurrence or duration of a saturation period and the
identification of eliminated positions.
``(h) Exemption for Small Business Concerns.--This section shall
not apply to any person that is a small business concern (within the
meaning of section 3 of the Small Business Act (15 U.S.C. 632)).
``(i) Payment; Returns.--The tax imposed by subsection (a) shall be
paid quarterly at the time prescribed for the return of taxes imposed
by section 3111, and shall be reported on such returns and in such
manner as the Secretary shall prescribe.
``(j) Deposit of Amounts.--The portion of the amounts received in
the Treasury under this section which is attributable to the taxes
described in section 3111 shall be credited to the Federal Old-Age and
Survivors Insurance Trust Fund, the Federal Disability Insurance Trust
Fund, and the Federal Hospital Insurance Trust Fund in the same manner
as if such amounts were taxes received under such section, and the
remainder shall be deposited in the Worker Adaptation Trust Fund
established under section 9512.
``(k) Regulations.--The Secretary, in consultation with the
Secretary of Labor, shall prescribe such regulations and other guidance
as may be necessary to carry out this section, including regulations
governing the identification and matching of eliminated and restored
positions, the determination of wage and benefit equivalence, and the
prevention of avoidance of this section.''.
(c) Denial of Accelerated Cost Recovery During Saturation
Periods.--
(1) Bonus depreciation.--Section 168(k)(2) of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new subparagraph:
``(I) Exclusion of certain automation assets.--The
term `qualified property' shall not include any
automation asset (as defined in section 5000F(f)(3))
placed in service during a saturation period (as
defined in section 5000F(c)) of the taxpayer.''.
(2) Alternative depreciation system required.--Section
168(g)(1) of such Code is amended by striking ``and'' at the
end of subparagraph (F), by inserting ``and'' at the end of
subparagraph (G), and by inserting after subparagraph (G) the
following new subparagraph:
``(H) any automation asset (as defined in section
5000F(f)(3)) placed in service during a saturation
period (as defined in section 5000F(c)) of the
taxpayer,''.
(3) Section 179 property.--Section 179(d)(1) of such Code
is amended by adding at the end the following: ``Such term
shall not include any automation asset (as defined in section
5000F(f)(3)) placed in service during a saturation period (as
defined in section 5000F(c)) of the taxpayer.''.
(d) Information Sharing.--
(1) Certification by the secretary of labor.--The Secretary
of Labor shall certify to the Secretary of the Treasury, at
such times and in such manner as such Secretaries shall jointly
prescribe, the eligibility determinations, charges, and
terminations determined under section 4 of this Act and section
3324 of the Internal Revenue Code of 1986 (as added by this
section).
(2) Disclosure of return information.--Section 6103(l) of
the Internal Revenue Code of 1986 is amended by adding at the
end the following new paragraph:
``(23) Disclosure of return information for administration
of worker adaptation contributions.--
``(A) In general.--The Secretary may, upon written
request from the Secretary of Labor, disclose to
officers and employees of the Department of Labor
return information with respect to any employer or
worker (including taxpayer identity information,
information on wages reported under section 6051, and
information with respect to contributions and charges
under chapter 23B) only for purposes of, and to the
extent necessary in, the administration of section 3324
and section 4 of the FUTURE of Workers Act, including
the verification of worker attestations and the
determination and charging of costs under section
3324(c).
``(B) Restriction on use and redisclosure.--Return
information disclosed under subparagraph (A) may be
used by officers and employees of the Department of
Labor only for the purposes described in such
subparagraph and may not be disclosed to any other
person except as otherwise authorized by this
section.''.
(3) Safeguards.--Section 6103(p)(4) of such Code is amended
by inserting ``, (l)(23)'' after ``(l)(22)'' each place it
appears.
(e) Clerical Amendments.--
(1) The table of chapters for subtitle C of the Internal
Revenue Code of 1986 is amended by inserting after the item
relating to chapter 23A the following new item:
``CHAPTER 23B--WORKER ADAPTATION CONTRIBUTIONS''.
(2) The table of sections for chapter 50B of such Code, as
added by section 11 of this Act, is amended by adding at the
end the following new item:
``SEC. 5000F. EXCESS DISPLACEMENT ACCOUNTABILITY.''.
(f) Effective Dates.--
(1) Contributions.--The amendments made by subsection (a)
shall apply to calendar years beginning after the date that is
1 year after the date of the enactment of this Act.
(2) Excess displacement accountability.--The amendments
made by subsections (b) and (c) shall apply to saturation
periods beginning after the date described in paragraph (1),
except that no automation asset placed in service on or before
the date of the enactment of this Act shall be taken into
account under section 5000F(f) of the Internal Revenue Code of
1986, as added by this section.
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