[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5597 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 5597

To amend the Internal Revenue Code of 1986 to allow employers a credit 
     against income tax for internships and fellowships related to 
                        information technology.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 27, 2000

    Ms. Millender-McDonald 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 employers a credit 
     against income tax for internships and fellowships related to 
                        information technology.

    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 ``Technology Training Tax Credit Act 
of 2000''.

SEC. 2. CREDIT FOR INTERNSHIPS AND FELLOWSHIPS RELATING TO INFORMATION 
              TECHNOLOGY.

    (a) General Rule.--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 thereof the following new 
section:

``SEC. 45D. INTERNSHIPS AND FELLOWSHIPS RELATING TO INFORMATION 
              TECHNOLOGY.

    ``(a) General Rule.--For purposes of section 38, the amount of the 
information technology internship and fellowship credit determined 
under this section for the taxable year is 75 percent of the qualified 
technology training expenses paid or incurred by the taxpayer during 
the taxable year.
    ``(b) Increase in Percentage With Respect to Members of Targeted 
Groups and Employee Residing in Certain Areas.--Subsection (a) shall be 
applied by substituting `100 percent' for `75 percent' in the case of 
qualified technology training expenses with respect to an eligible 
individual and who--
            ``(1) is a member of a targeted group (as defined in 
        section 51(d)), or
            ``(2) resides in--
                    ``(A) an empowerment zone or enterprise community 
                designated under section 1391,
                    ``(B) a school district in which 50 percent or more 
                of the students are eligible for free or reduced-cost 
                lunches under the school lunch program established 
                under the National School Lunch Act, or
                    ``(C) in an area designated as a disaster area by 
                the Secretary of Agriculture or by the President under 
                the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act in the taxable year or the 5 preceding 
                taxable years.
        For purposes of the preceding sentence, the determination of 
        whether an individual is a member of a targeted group or 
        resides in an area described in paragraph (2) shall be made as 
        of the date on which the individual is awarded an internship or 
        fellowship (as the case may be).
    ``(c) Limitations.--
            ``(1) Annual.--The amount of qualified technology training 
        expenses that may be taken into account under this section for 
        a taxable year with respect to an eligible individual shall not 
        exceed the lesser of--
                    ``(A) $10,000, or
                    ``(B) the amount of qualified technology training 
                expenses paid or incurred in such taxable year with 
                respect to such individual.
            ``(2) 3 years per individual.--An individual shall not be 
        treated as an eligible individual for purposes of this section 
        if the taxpayer was allowed a credit under subsection (a) with 
        respect to such individual in any 3 prior taxable year.
    ``(d) Qualified Technology Training Expenses.--For purposes of this 
section--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `qualified technology training expenses' 
        means amounts paid or incurred by the taxpayer under a 
        qualified technology program in connection with providing 
        internships and fellowships to eligible individuals.
            ``(2) Training provided in united states.--Amounts may be 
        taken into account under paragraph (1) with respect to any 
        individual only if substantially all of the education or 
        training provided such individual during the taxable year with 
        respect to such amounts is provided in the United States.
    ``(e) Definitions.--For purposes of this section--
            ``(1) Qualified technology program.--
                    ``(A) In general.--The term `qualified technology 
                program' means a program in which the taxpayer awards 
                internships or fellowships for work at the taxpayer 
                which provides training in computer programming, 
                computer systems analysis, computer science, computer 
                engineering, or other information technology 
                discipline.
                    ``(B) Partnership requirement.--A program shall not 
                be treated as a qualified technology program for 
                purposes of subparagraph (A) unless--
                            ``(i) such program is a partnership between 
                        the taxpayer and a state training program or an 
                        eligible education institution, and
                            ``(ii) the taxpayer pays or incurs at least 
                        50 percent of the technology training expenses 
                        under such program.
            ``(2) Eligible individual.--The term `eligible individual' 
        means an individual who--
                    ``(A) is a citizen, national, or lawful permanent 
                resident of the United States, and
                    ``(B) first becomes an employee of the taxpayer on 
                the date such individual begins the internship or 
                fellowship with respect to which such expenses are 
                qualified technology training expenses.
            ``(3) Eligible education institution.--The term `eligible 
        education institution' has the meaning given to such term by 
        section 25B(f)(2).
    ``(f) Denial of Double Benefit.--No credit shall be allowed under 
this section for any expense for which a credit or deduction is allowed 
under any other provision of this chapter.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code is amended by striking ``plus'' at the end of 
paragraph (11), by striking the period at the end of paragraph (12) and 
inserting ``, plus'', and by adding at the end thereof the following 
new paragraph:
            ``(13) the information technology internship and fellowship 
        credit determined under section 45D(a).''.
    (c) Limitation on Carryback.--Subsection (d) of section 39 of the 
Internal Revenue Code of 1986 (relating to carryback and carryforward 
of unused credits) is amended by adding at the end the following:
            ``(9) No carryback of information technology internship and 
        fellowship credit before effective date.--No amount of unused 
        business credit available under section 45D may be carried back 
        to a taxable year beginning on or before the date of the 
        enactment of this paragraph.''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end thereof the following new section:

                              ``Sec. 45D. Internships and fellowships 
                                        relating to information 
                                        technology.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of enactment of this 
Act in taxable years ending after such date.
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