Renewing Careers and Responding to Crises through the Skills Investment Act

Future Caucus member Rep. Derek Kilmer (WA-6) is leading an effort to expand tax-favored savings options for Americans looking to build new career and job skills. HR1242, the Skills Investment Act of 2021, is a bipartisan bill that would modify existing Coverdell savings accounts to create lifelong learning accounts that enable access to a variety of training and retraining initiatives across the workforce. Introduced on February 23rd, 2021, the bill is co-sponsored by Future Caucus Co-Chair Rep. Blake Moore (UT-1).    

By expanding eligible uses of Coverdell tax-favored accounts to include training services, career and technical education activities, career services, youth workforce investment activities, and adult education and literacy activities, this legislation aims to expand career opportunities for workers while addressing ongoing economic changes by unlocking the potential of Americans.

Rep. Kilmer said the bill is meant to “give American workers a hand, helping them enroll in apprenticeships, college classes, or retraining programs, so they can learn new skills, land new jobs, and earn a good living.” A bipartisan companion bill, HR1243, the Skills Renewal Act, would create a $4,000 refundable tax credit for Americans unemployed as a result of COVID-19 and seeking training in high need areas, such as computer science.

Overall, this bipartisan commitment to supporting career advancement and addressing immediate needs of the workforce will better prepare the nation for present and future challenges while boosting prosperity. 

The Skills Investment Act is active and referred to the House Committee on Ways and Means, with two Democratic and two Republican co-sponsors as of July 19th, 2021.