House Introduces Tax Credit to Ease IT Worker Shortage; Technology Workforce Coalition Says Bill Helps Individuals Get IT Training, Fills Available IT Jobs.

Business Editors/Hi-Tech Writers

WASHINGTON--(BUSINESS WIRE)--May 10, 2001

Congress may soon provide a powerful new tool to help thwart the shortfall of IT-skilled workers.

On Thursday, the United States House of Representatives introduced the "Technology Education and Training Act (TETA) of 2001," providing individuals and employers tax credits of up to $1,500 for IT training expenses, thus easing the IT worker shortage.

Representatives Jerry Weller (R-IL) and Jim Moran (D-VA) announced the introduction of TETA at a Washington IT conference hosted by the National Association of Computer Consultant Businesses. This grassroots event is used by hundreds of IT consultants to fan out across Capitol Hill and meet with representatives on issues of concern.

Figuring prominently in those discussions will be the IT worker shortage.

"IT jobs remain vacant because companies can't find skilled people to fill them," noted Grant Mydland, Director of the Technology Workforce Coalition. "TETA helps American workers get necessary IT training, while providing a steady stream of IT-skilled workers for companies."

Mydland applauded the bill's introduction - which has a Senate companion, S. 762 - and urged Congress' quick consideration and passage of TETA.

Essentially, TETA:

-- Provides a tax credit of up to $1,500 for IT training expenses paid by
employers

-- Amends the HOPE and Lifetime Learning tax credits so individuals can better
access IT training courses at all of the available institutions and training
centers

-- Allows tax credits of up to $2,000 for small businesses, as well as for
people residing in and companies operating in empowerment zones and other
qualified areas

"Over 400,000 of the 900,000 IT jobs needed in 2001 won't get filled," Mydland added. "IT drives our economy, but does so only through the talent of our IT-skilled workers. TETA gives individuals and companies the right incentives to meet America's rapidly evolving IT needs, keeping this nation truly competitive. The House should be congratulated for its foresight in working to halt the IT worker shortage and to help transition America's workforce to the new economy."

About the Technology Workforce Coalition

TWC was created by the Computing Technology Industry Association (CompTIA) and the IT Training Association (ITTA) in 1999 and now includes a dozen IT associations and more than 500 companies. TWC advocates federal and state level solutions to address the IT worker shortage, including IT training tax credits, K-12 math and science curriculum changes, and teacher training incentives.

While TWC supports a multi-faceted approach, it believes that IT training tax credits will have the greatest impact. Please visit www.techcoalition.org for more information.