[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4247 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4247

  To allow a credit against income tax for contributions used for the 
 construction and renovation of public schools in certain high school 
                               districts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 16, 1998

  Mr. Costello (for himself and Mr. Poshard) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To allow a credit against income tax for contributions used for the 
 construction and renovation of public schools in certain high school 
                               districts.

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

SECTION 1. CREDIT FOR CONTRIBUTIONS TO CERTAIN HIGH SCHOOL DISTRICTS.

    (a) In General.--For purposes of section 38 of the Internal Revenue 
Code of 1986, the current year business credit shall include the credit 
determined under this section.
    (b) Determination of Credit.--The credit determined under this 
section for each taxable year in the credit period is an amount equal 
to 7 percent of each qualified contribution made by the taxpayer.
    (c) Credit Period.--For purposes of this section, the credit period 
with respect to any qualified contribution is the period of 10 taxable 
years beginning with the taxable year during which such contribution 
was made.
    (d) Qualified Contribution.--For purposes of this section--
            (1) In general.--The term ``qualified contribution'' means 
        any transfer of cash--
                    (A) which is made to a selected high school 
                district during the 5-year period beginning on the date 
                such district is selected for purposes of this section,
                    (B) which is available for use by such district for 
                at least 10 years,
                    (C) which is to be used by such district to 
                construct, renovate, or repair a high school facility 
                which serves grades 9 through 12, and
                    (D) which is designated by such district for 
                purposes of this section.
            (2) Limitation on amount designated.--The aggregate amount 
        of contributions to a selected high school district which may 
        be designated under this section by such district shall not 
        exceed the lesser of)
                    (A) $36,000,000, or
                    (B) 70 percent of the cost of the construction, 
                renovation, or repair referred to in paragraph (1)(C).
    (e) Selected High School District.--
            (1) In general.--For purposes of this section, the term 
        ``selected high school district'' means any high school 
        district selected by the Secretary of Education.
            (2) Number of districts selected, etc.--
                    (A) In general.--The Secretary of Education may 
                designate 4 high school districts for purposes of this 
                section, subject to the availability of eligible high 
                school districts. Such selections shall be made before 
                October 1, 1998.
                    (B) Minimum selection.--At least 1 high school 
                district selected under this section shall be a high 
                school district--
                            (i) which is outside a metropolitan 
                        statistical area,
                            (ii) which has been designated as a 
                        Champion Community by the Department of 
                        Agriculture under the Empowerment Zone and 
                        Enterprise Community program, and
                            (iii) which proposes to use contributions 
                        under this section to construct a high school 
                        facility in a municipality having a population 
                        of less than 30,000.
            (3) Selected high school districts must have certain 
        characteristics.--A high school district may be selected under 
        this section only if--
                    (A) the high school facility proposed to be 
                constructed, renovated, or repaired by such district 
                with contributions to which this section applies is 
                located in a municipality with--
                            (i) a poverty rate of at least 45 percent, 
                        and
                            (ii) a per capita income of $9,000 or less,
                    (B) it is reasonably expected that at least 20 
                percent of the students to be enrolled in such facility 
                (for the first school year beginning after the 
                completion of such construction, renovation, or repair) 
                will be students who applied, and were determined to be 
                eligible, for free or reduced-price meals during the 
                1997-98 school year under the eligibility guidelines of 
                the Department of Agriculture applicable to the 1-year 
                period beginning July, 1, 1997, and
                    (C) such facility will, in addition to being used 
                as a high school, be used for community recreational 
                and other community purposes.
        A facility shall not fail to be treated as a high school 
        facility for purposes of this section by reason of community 
        use.
            (4) Population and poverty rate.--Population and poverty 
        rate shall be determined by the 1990 Census of Population and 
        Housing.
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