Rep. Sam Liccardo is promoting a new federal tax credit plan designed to steer private money toward workforce training for jobs expected to be reshaped by artificial intelligence.
The California Democrat introduced the Supporting Knowledge Through Industry-Led Learning, or SKILL, Act on Monday in Silicon Valley, framing it as an effort to help colleges and employers build the training pipelines needed for an AI-driven economy. The proposal would reward companies that invest in programs at community colleges, state universities and other higher education institutions.
Liccardo, a former San Jose mayor, said the idea is to encourage firms to help shape curricula, support internships and create the kinds of education partnerships that can prepare students for emerging jobs. At the press event, he described the bill as a straightforward incentive for businesses to work more closely with schools on skills development.
Under the legislation, the federal government would authorize up to $500 million in annual tax credit authority, with allocations distributed to states based on population. Companies could qualify by helping fund or support degree and certificate programs aimed at filling job openings in fields affected by AI and related technologies.
Eligible investments would include curriculum design, skills assessment tools, internships, applied learning experiences, registered apprenticeship programs and laboratory support. The bill would also count donations of cash, equipment and personal services.
Employers could receive a $2,500 tax credit for each student who completes a qualifying program. They could claim an additional $2,500 for each graduate they hire.
Liccardo’s office said the measure is meant to help prepare workers for labor market disruptions tied to AI, while also giving companies a clearer path to develop the talent they need. The proposal comes as lawmakers and state officials across the country consider ways to cushion workers from potential layoffs and shifting job requirements caused by automation and AI adoption.
New Jersey recently saw the introduction of a separate state-level bill that would direct nearly $200 million toward retraining programs, illustrating broader interest in workforce policy as AI spreads through the economy.
The California lawmaker said Rep. Jimmy Panetta, another Democrat from California who serves on the House Ways and Means Committee, is supporting the legislation. Louis Stewart, Nvidia’s head of ecosystem development and a former official in the administration of former California Gov. Jerry Brown, also appeared at the event in support of the bill.
According to Liccardo’s office, the SKILL Act has also drawn backing from several industry lobbying organizations, including TechNet, The Digital Chamber and the Chamber of Progress, along with the American Association of Community Colleges.
The proposal reflects a growing policy debate over how much of the burden for AI-era retraining should fall on employers, schools and government. Rather than creating a new federal training program outright, the SKILL Act seeks to use the tax code to encourage private-sector participation in education partnerships.
Liccardo is positioning the measure as an early attempt to align business incentives with workforce preparation before AI-related changes hit harder. Whether the bill advances will likely depend on support in the tax-writing committee and broader appetite in Congress for new federal incentives tied to workforce development.