1. Short title This Act may be cited as the State Workforce Incentive Act . 2. State workforce incentive program Part G of title IV of the Higher Education Act of 1965 ( 20 U.S.C. 1088 et seq.) is amended by adding at the end the following: 493E. State workforce incentive program (a) Purpose The purpose of this section is to support the workforce in State-determined high-need or public-service occupations, and to encourage individuals to pursue and maintain employment in such occupations through annual incentive payments towards their eligible Federal loans. (b) Allotment and allocations of credits for reducing Federal loan debt (1) In general From the amount appropriated under subsection (e), the Secretary shall annually allot, in accordance with paragraph (2), loan repayment credits to each State with an approved State implementation plan, which may be allocated to eligible borrowers in such State for the purpose of reducing the amount owed on the eligible Federal loans of such borrowers. (2) Allotment of loan repayment credits to States (A) In general Each State with an approved State implementation plan shall receive an allotment of loan repayment credits on July 1 of each year, as follows: (i) 0.50 of the amount appropriated under subsection (e) shall be allotted on the basis of the relative population of the State, compared to the total population in all States with an approved State implementation plan. (ii) 0.25 of the amount appropriated under subsection (e) shall be allotted on the basis of the relative amount of individuals in poverty in the State, compared to the total amount of individuals in poverty in all States with an approved State implementation plan. (iii) 0.25 of the amount appropriated under subsection (e) shall be allotted on the basis of the relative excess number of individuals in poverty in the State, compared to total excess number of individuals in poverty in all States with an approved State implementation plan. (B) Definitions For purposes of this paragraph: (i) Individuals in