[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4207 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 4207

To amend the Internal Revenue Code of 1986 to allow businesses a credit 
   against income tax for providing work experiences for high school 
   juniors and seniors for which the students receive credit toward 
                              graduation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 1994

Mr. Richardson 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 businesses a credit 
   against income tax for providing work experiences for high school 
   juniors and seniors for which the students receive credit toward 
                              graduation.

    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 ``Student and Business Partnership for 
Credit Act of 1994''.

SEC. 2. CREDIT FOR PROVIDING EDUCATIONAL WORK EXPERIENCES FOR HIGH 
              SCHOOL JUNIORS AND SENIORS.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to business related 
credits) is amended by adding at the end the following new section:

``SEC. 45C. EDUCATIONAL WORK EXPERIENCES FOR HIGH SCHOOL STUDENTS.

    ``(a) Allowance of Credit.--For purposes of section 38, in the case 
of a taxpayer engaged in a trade or business, the educational work 
experience credit determined under this section for any taxable year is 
$2,000 for each work experience program participant whose work 
experience period with the taxpayer ends during such taxable year.
    ``(b) Work Experience Program Participant.--For purposes of this 
section--
            ``(1) In general.--The term `work experience program 
        participant' means any individual who is performing services 
        for the taxpayer pursuant to a qualified work experience 
        program.
            ``(2) Qualified work experience program.--The term 
        `qualified work experience program' means any program if--
                    ``(A) the program is operated by a local school 
                system,
                    ``(B) only qualified students may participate in 
                the program,
                    ``(C) the program places qualified students with 1 
                or more local business for--
                            ``(i) a work experience that is determined 
                        by the student's high school principal to be 
                        appropriate to the educational needs of the 
                        student,
                            ``(ii) a minimum of 10, and a maximum of 
                        20, hours per week, and
                            ``(iii) a period not to exceed 5 months 
                        during any school year,
                    ``(D) each participant in the program receives 
                credit toward high school graduation for satisfactory 
                participation in the program,
                    ``(E) participants in the program do not receive 
                compensation from any source for services performed for 
                any business pursuant to the program,
                    ``(F) the program requires each business receiving 
                a student pursuant to the program to provide such 
                supervision of the student's work experience, and such 
                reports to the student's high school principal with 
                respect to such experience, as the such principal may 
                require, and
                    ``(G) such program meets such other requirements as 
                may be prescribed by the Secretary (after consultation 
                with the Secretary of Education).
            ``(3) Qualified student.--The term `qualified student' 
        means any full-time student enrolled in the 11th or 12th grade 
        at a high school.
            ``(4) High school.--The term `high school' means a 
        secondary school (as defined in section 1471(21) of the 
        Elementary and Secondary Education Act of 1965).
    ``(c) Work Experience Period.--For purposes of subsection (a), the 
term `work experience period' means the period that an individual 
performs services for the taxpayer pursuant to a qualified work 
experience program.''
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code (relating to general business credit) is 
amended by striking ``plus'' at the end of paragraph (10), by striking 
the period at the end of paragraph (11) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(12) in the case of a taxpayer engaged in a trade or 
        business, the educational work experience credit determined 
        under section 45C(a).''
    (c) Clerical Amendment.--The table of sections for such subpart D 
of part IV of subchapter A of chapter 1 of such Code is amended by 
adding at the end the following new item:

                              ``Sec. 45C. Educational work experiences 
                                        for high school students.''
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after August 31, 1994, with respect to 
work experience periods ending after such date.

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