Fed Tax Incentives: Mine Rescue Team Training Credit

Background 

 

Taxpayers who employ individuals as miners in U.S. underground mines may claim the mine rescue team training credit pursuant to I.R.C. § 45N. This credit applies to training program costs paid or incurred for qualified mine rescue team employees.

 

In general, taxpayers who employ individuals as miners in U.S. underground mines can claim a credit the lesser of 20% of the training program costs paid or incurred during the tax year for training of qualified mine rescue team employees or $10,000 per each qualified employee employee. The maximum amount of training program costs that may be taken into account annually for each qualified employee is $50,000.

 

The training costs include wages paid or incurred while the qualified employee is attending a training program. The term “wages” has the meaning given to such term by subsection (b) of section 3306 (determined without regard to any dollar limitation contained in such section), subject to the Federal Unemployment Tax Act (FUTA). See I.R.C. § 45N(d); I.R.C. § 3306(b).

A qualified mine rescue team employee includes the following (I.R.C. § 45N(b)):

any full-time employee of the taxpayer who is a miner eligible to serve for more than 6 months of the year as a mine rescue team member as a result of completing, at a minimum,

  • an initial 20-hour course of instruction, as prescribed by the Mine Safety and Health Administration’s Office of Educational Policy and Development, or

  • received at least 40 hours of refresher training in such instruction. See 30 CFR section 49.8 for refresher training requirements.

Taxpayers who employ individuals as miners in U.S. underground mines use Form 8923 to claim the mine rescue team training credit.  

Credit Calculation Summary

I.R.C. § 45N(a) provides the mine rescue team training credit determined under this section with respect to each qualified mine rescue team employee of an eligible employer (any taxpayer which employs individuals as miners in underground mines in the U.S., see I.R.C. § 45N(c)) for any taxable year is an amount equal to the lesser of—

  • (1) 20% of the amount paid or incurred by the taxpayer during the taxable year with respect to the training program costs of such qualified mine rescue team employee (including wages of such employee while attending such program), OR​

  • (2) $10,000.

See IRS Link for additional background:

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