The "Investing in American Workers Act" introduces a new federal tax credit designed to incentivize employers to invest in the training and upskilling of their workforce. This credit, generally calculated as 20 percent of the excess qualified training expenditures over a three-year average, aims to support the development of a skilled labor force. To qualify, training expenditures must be for non-highly compensated employees and lead to a recognized postsecondary credential . Eligible training programs include registered apprenticeships, programs listed under the Workforce Innovation and Opportunity Act, those offered by community colleges or labor organizations, and employer-sponsored initiatives. A significant provision allows qualified small businesses and tax-exempt organizations to elect to apply a portion of this credit, up to $250,000, against their payroll taxes, rather than their income tax liability. This aims to make the credit more accessible and beneficial for smaller entities. The bill also mandates the Treasury Department to provide simplified filing methods for small businesses and requires the Secretary of Labor to issue guidance on the definition of "recognized postsecondary credential." Furthermore, regulations will be developed to require the collection of demographic information, including race, ethnicity, and gender, for individuals receiving training under this credit.