Sam Liccardo

What it does: The legislation would authorize $500 million in total tax credit authority annually, which would be distributed to states on a per capita basis.

Investments that would qualify for the tax credits include curricula development, skills assessment development, internships and applied learning opportunities, as well as registered apprenticeship programs and the provision of labs. Donations of cash, equipment and personal services would also qualify.

Employers would receive a $2,500 tax credit for each student who completes a qualified program, and an additional $2,500 for each graduate they hire.

The bill fits into a broad set of new proposals nationwide to prepare the U.S. workforce for layoffs tied to AI. A state bill recently introduced in New Jersey, for instance, would provide nearly $200 million for retraining programs.

The support: Liccardo said that Rep. Jimmy Panetta, D-CA, who sits on the tax-writing House Ways and Means Committee, is backing the bill. Louis Stewart, Nvidia’s head of ecosystem development and a former official in Gov. Jerry Brown’s administration, also spoke at the press conference in support of the bill.

Liccardo’s legislation has the backing of industry lobbying groups including TechNet, The Digital Chamber and the Chamber of Progress, as well as the American Association of Community Colleges, according to Liccardo’s office.