[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2906 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2906

   To amend the Internal Revenue Code of 1986 to allow a credit for 
 charitable contributions made by businesses to public elementary and 
              secondary schools located in poverty areas.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 5, 1993

   Mr. Tucker (for himself, Mr. Dixon, Mr. Martinez, Mr. Mfume, Mr. 
Reynolds, Mr. Mineta, Mr. Horn, Mr. Edwards of California, Mr. Serrano, 
Mr. Torres, Mr. Dellums, Mr. Stokes, Mr. Lewis of Georgia, Miss Collins 
 of Michigan, and Mr. Fazio) introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to allow a credit for 
 charitable contributions made by businesses to public elementary and 
              secondary schools located in poverty areas.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Adopt-A-School Act of 1993''.

SEC. 2. CREDIT FOR CERTAIN BUSINESS CONTRIBUTIONS TO PUBLIC ELEMENTARY 
              AND SECONDARY SCHOOLS LOCATED IN POVERTY AREAS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
thereof the following new section:

``SEC. 30A. CERTAIN BUSINESS CONTRIBUTIONS TO PUBLIC ELEMENTARY AND 
              SECONDARY SCHOOLS LOCATED IN POVERTY AREAS.

    ``(a) In General.--In the case of a taxpayer engaged in a trade or 
business, there shall be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to 70 percent of the 
qualified public school contributions made during such taxable year.
    ``(b) Qualified Public School Contribution.--
            ``(1) In general.--The term `qualified public school 
        contribution' means--
                    ``(A) any contribution to a qualified public school 
                for its exclusive use if--
                            ``(i) such contribution is--
                                    ``(I) cash to be used by such 
                                school for qualified tangible personal 
                                property or for additions or 
                                improvements to such school, or
                                    ``(II) qualified tangible personal 
                                property, and
                            ``(ii) the taxpayer receives from the donee 
                        a written statement representing that such 
                        school is a qualified public school and that 
                        the contribution will be used in accordance 
                        with this subparagraph, and
                    ``(B) any amount paid or incurred by the taxpayer 
                for training services provided to students attending a 
                qualified public school as part of an educational 
                program approved by such school.
        In the case of a contribution of property, the amount taken 
        into account under subsection (a) shall be the amount which 
        would (but for subsection (c)) be allowed as a deduction under 
        section 170 for such contribution.
            ``(2) Qualified public school.--The term `qualified public 
        school' means any school for the education of students at or 
        below the 12 grade level if--
                    ``(A) such school is owned and operated by a local 
                government,
                    ``(B) such school is located in a population census 
                tract having a poverty rate of at least 15 percent (as 
                determined using the most recent decennial census data 
                available), and
                    ``(C) the funding provided for such school from 
                government sources is not reduced by reason of any 
                contribution to which this section applies.
            ``(3) Qualified tangible personal property.--The term 
        `qualified tangible personal property' means tangible personal 
        property to be used by students attending the qualified public 
        school or by teachers at such school as part of the educational 
        program of such school.
            ``(4) Areas not within census tracts.--In the case of an 
        area which is not tracted for population census tracts, the 
        equivalent county divisions (as defined by the Bureau of the 
        Census for purposes of defining poverty areas) shall be used 
        for purposes of paragraph (2)(B).
    ``(c) Denial of Deduction.--No deduction shall be allowed under 
provision of this chapter for any amount which is taken into account in 
determining the credit under this section.
    ``(d) Application With Other Credits.--The credit allowed by 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(1) the regular tax for the taxable year reduced by the 
        sum of the credits allowable under subpart A and the preceding 
        sections of this subpart, and
            ``(2) the tentative minimum tax for the taxable year.''.
    (b) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end thereof the following new item:

                              ``Sec. 30A. Certain business 
                                        contributions to public 
                                        elementary and secondary 
                                        schools located in poverty 
                                        areas.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made after the date of the enactment of this Act 
in taxable years ending after such date.

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