1. Short title This Act may be cited as the Skills Renewal Act . 2. Establishment of Skills Training Credit (a) In general Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36 the following new section: 36A. Skills Training Credit (a) Allowance of credit In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the lesser of— (1) the amount of expenses paid or incurred by such individual during such taxable year for qualified training services which are provided by a qualified entity, or (2) an amount equal to— (A) $4,000, minus (B) an amount equal to the sum of any credits allowed to the taxpayer under this section for any preceding taxable year. (b) Definitions For purposes of this section— (1) Eligible individual (A) In general The term eligible individual means an individual who— (i) became unemployed or furloughed during calendar year 2020 but was otherwise able to work and available for work within the meaning of applicable State law (as defined in section 205 of the Federal-State Extended Unemployment Compensation Act of 1970 ( 26 U.S.C. 3304 note)), (ii) during the period in which any qualified training service is provided to such individual by a qualified entity— (I) is not employed and has applied for or is receiving compensation (as defined in section 3306(h)), including pandemic emergency unemployment compensation under section 2107 of subtitle A of title II of division A of the CARES Act, and (II) informs such entity of their intent to claim the credit allowed under subsection (a) with respect to such service. (B) Exclusion For purposes of subparagraph (A), the term eligible individual shall not include an individual whose employer has reduced their hours of work and who receives compensation pursuant to a short-time compensation program (as defined in section 3306(v)). (2) Qualified entity The term qualified entity means an