The Supporting Knowledge through Industry-Led Learning (SKILL) Act would use tax credits to encourage employers to co-design short-term credential programs with colleges to meet workforce demands.

July 08, 2026  - Abby Sourwine

In response to artificial intelligence transforming the job market, two congressmen from California introduced a new bill to the U.S. House of Representatives last month to incentivize employers to partner with colleges on training and upskilling.

The Supporting Knowledge through Industry-Led Learning (SKILL) Act, introduced by Rep. Sam Liccardo, D-Calif., on June 24, would create a federal tax credit for employers that contribute to curriculum development, applied learning and internships at public colleges. The bill targets short-term programs at public community colleges, universities and registered apprenticeship organizations.

According to Liccardo, the act is a response to predicted workforce displacement driven by artificial intelligence. Tech leaders and research groups have provided differing forecasts of AI-related job loss, ranging from 10 percent to 50 percent, and many Americans have reported feeling concerned over AI’s impact on the workforce.

“We’re trying to accomplish two objectives, both related to massive fear that is felt in every young person contemplating a future job market,” Liccardo said. “One objective is to ensure that we have upskilling and reskilling programs in place that will reflect the needs of employers in an AI-driven economy, and the second is to enable our workforce to become more nimble in an economy where the ground is shifting with each technological development.”

The act incentivizes businesses to share their insights on in-demand skills by developing curriculum or assessments, providing internships and applied learning opportunities, or donating cash, equipment and services. Participating employers would receive a $2,500 tax credit for each student who completes a program they’ve supported and an additional $2,500 credit for each program graduate they hire.

The bill has been endorsed by the CEO network TechNet, tech industry advocacy groups like The Digital Chamber and Chamber of Progress, and the American Association of Community Colleges.

“Forward-thinking job training is essential to maintaining U.S. leadership in innovation and getting America’s workforce ready for the jobs of tomorrow, created by emerging technologies,” TechNet President and CEO Linda Moore said in a public statement.

Liccardo said he hopes the partnerships will help colleges and universities predict and plan for future demand.

“I’m not going to be able to predict what the jobs of the future and the skills the future will be, and other public-sector institutions will struggle to do the same,” he said. “One thing is certain: that our private-sector employers will know before we do.”

The bill reflects a growing emphasis on industry input in curriculum. For example, California universities partnered with tech leaders like Google and NVIDIA last year to train students and staff on AI, and community colleges across the country sought industry input through the National Applied Artificial Intelligence Consortium.

“Certainly there are partnerships today,” Liccardo said. “But, there are many challenges and inhibitions to others joining in, and we’re not doing this at scale.”

Liccardo said the legislation can help provide assurance for those in education who fear private-sector influence, with successful partnerships serving as a blueprint for scaling up. Widespread training that aligns with industry demands will be important, he said, especially for roles like healthcare technicians, information technology and skilled trades.

“We are not doing a very good job of producing the labor force we need in any of those trades,” he said.

The bill is still in early stages, and Liccardo said its best shot at passing is to become part of a larger tax bill. With current congressional attitudes, he said the lame duck period is the best bet.

“If there is some tax legislation moving, we can get this attached to one of those bills,” he said.