H.R. 10044 — AI Tax and Work Protection Act

This section imposes an excise tax on covered persons equal to the greater of (1) the fair market value of tokens processed in covered transactions multiplied by the applicable token percentage or (2) the value of consideration received for artificial intelligence services multiplied by the applicable transaction percentage. The applicable token percentage starts at 2 percent and the applicable transaction percentage starts at 3 percent when the applicable unemployment rate is 5 percent or below; both percentages increase as the unemployment rate rises above 5 percent or 7 percent. The tax applies to the provision or use of foundation models—defined as AI models trained on broad data using at least 10^25 operations—except for research and development uses by governments, institutions of higher education, federally funded research centers, and 501(c)(3) organizations.

This section establishes a trust fund in the Treasury funded by appropriations equivalent to 100 percent of the taxes imposed by section 4491 of the Internal Revenue Code of 1986 for fiscal year 2027 and each fiscal year thereafter.

This section establishes a Work Protection Administration within the Department of Labor, to be headed by a Director, no later than 90 days after enactment.

This section establishes a competitive grant program, funded from a trust fund under title II, to create employment opportunities. It directs the Director to prioritize awards for permanent full-time jobs and for state or local governments performing government functions, to consider recommendations from an advisory committee and Bureau of Labor Statistics data on artificial intelligence impacts, and to form an interagency task force to review applications. Eligible entities must maintain collective bargaining rights, post labor rights notices, provide benefit information at hiring, recognize majority-selected unions, and give local hiring preferences, with an exemption for tribal governments.

This section requires each eligible entity awarded a grant under section 401 to use the funds to hire employees aged 18 or older for jobs that create and support positions in child care and early education, public schools, health care, elder and disability services, housing construction and homelessness assistance, violence prevention, scientific research, infrastructure, arts and culture, environmental conservation, wildfire and disaster preparedness, community facilities, parks, local journalism, workforce training under the Workforce Innovation and Opportunity Act, and other public needs determined by the Director and advisory committee.

This section requires the Director to submit a report to the House Committee on Education and Workforce and the Senate Committee on Health, Education, Labor, and Pensions, beginning one year after the first grant award under section 401 and annually thereafter. The report must include the total number of grants awarded and data on resulting jobs created under section 402, including the number of jobs per grant and the average, median, and range of wages paid.

This section establishes an advisory committee within 180 days after enactment or 90 days after creation of the Office under title III, whichever is sooner, to advise the Director on the grant program under section 401. The committee comprises designees from the Secretaries of Labor, Commerce, and Education, the Federal Reserve and National Labor Relations Board chairs, the National Science Foundation, the Council of Economic Advisers, the Office of Science and Technology Policy, qualifying unions, state governors, and two economists studying macroeconomic labor trends; it meets quarterly beginning within 30 days after enactment and is exempt from the Federal Advisory Committee Act.

This section requires the Bureau of Labor Statistics to collect, collate, and report on the impacts of artificial intelligence on the workforce, including effects beyond job displacement and the degradation of existing jobs such as reduced pay, fewer hours, or conversion to temporary positions. It authorizes $20 million annually for fiscal years 2027 through 2031.

This section authorizes appropriations, beginning in fiscal year 2027 and each year thereafter, of up to 20 percent of the funds appropriated to the trust fund for Workforce Innovation and Opportunity Act programs and training activities.

This section establishes definitions for the Act, including artificial intelligence by reference to the National Artificial Intelligence Initiative Act of 2020, eligible entities such as state and tribal governments, local educational agencies, schools, institutions of higher education, and 501(c) organizations, and full-time employees as those working at least 30 hours per week on average. It also defines partial displacement as any reduction in hours, wages, or benefits, and permanent employees as those not designated temporary with employment lasting more than one year.