[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1934 Introduced in Senate (IS)]







106th CONGRESS
  1st Session
                                S. 1934

 To amend the Internal Revenue Code of 1986 to allow a tax credit for 
           business-provided student education and training.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 16, 1999

 Mr. Dodd (for himself and Mr. Bennett) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow a tax credit for 
           business-provided student education and training.

    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 ``Businesses Educating Students in 
Technology (BEST) Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Technological progress is the single most important 
        determining factor in sustaining growth in the Nation's 
        economy. It is estimated that technological innovation has 
        accounted for as much as half the Nation's long-term economic 
        growth over the past 50 years and will account for an even 
        higher percentage in the next 50 years.
            (2) The number of jobs requiring technological expertise is 
        growing rapidly. For example, it is estimated that 1,300,000 
        new computer engineers, programmers, and systems analysts will 
        be needed over the next decade in the United States economy. 
        Yet, our Nation's computer science programs are only graduating 
        25,000 students with bachelor's degrees yearly.
            (3) There are more than 350,000 information technology 
        positions currently unfilled throughout the United States, and 
        the number of students graduating from colleges with computer 
        science degrees has declined dramatically.
            (4) In order to help alleviate the shortage of graduates 
        with technology-based education and skills, businesses in a 
        number of States have formed partnerships with colleges, 
        universities, community-technical schools, and other 
        institutions of higher learning to give lectures, donate 
        equipment, plan curricula, and perform other activities 
        designed to help students acquire the skills and knowledge 
        needed to fill jobs in technology-based industries.
            (5) Congress should encourage these partnerships by 
        providing a tax credit to businesses that enter into them. Such 
        a tax credit will help students obtain the knowledge and skills 
        they need to obtain jobs in technology-based industries which 
        are among the best paying jobs being created in the economy. 
        The credit will also assist businesses in their efforts to 
        develop a more highly-skilled, better trained workforce that 
        can fill the technology jobs such businesses are creating.

SEC. 3. ALLOWANCE OF CREDIT FOR BUSINESS-PROVIDED STUDENT EDUCATION AND 
              TRAINING.

    (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:

``SEC. 45D. BUSINESS-PROVIDED STUDENT EDUCATION AND TRAINING.

    ``(a) Allowance of Credit.--For purposes of section 38, the 
business-provided student education and training credit determined 
under this section for the taxable year is an amount equal to 40 
percent of the qualified student education and training expenditures of 
the taxpayer for such taxable year.
    ``(b) Dollar Limitation.--The credit allowable under subsection (a) 
for any taxable year shall not exceed $100,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified student education and training 
        expenditure.--
                    ``(A) In general.--The term `qualified student 
                education and training expenditure' means--
                            ``(i) any amount paid or incurred by the 
                        taxpayer for the qualified student education 
                        and training services provided by any employee 
                        of the taxpayer, and
                            ``(ii) the basis of the taxpayer in any 
                        tangible personal property contributed by the 
                        taxpayer and used in connection with the 
                        provision of any qualified student education 
                        and training services.
                    ``(B) Exclusion for amounts funded by grants, 
                etc.--The term `qualified student education and 
                training expenditure' shall not include any amount to 
                the extent such amount is funded by any grant, 
                contract, or otherwise by another person (or any 
                governmental entity).
            ``(2) Qualified student education and training services.--
                    ``(A) In general.--For purposes of paragraph (1), 
                the term `qualified student education and training 
                services' means technology-based education and training 
                of students in any eligible educational institution in 
                employment skills related to the trade or business of 
                the taxpayer.
                    ``(B) Technology-based education and training.--
                            ``(i) In general.--For purposes of 
                        subparagraph (A), the term `technology-based 
                        education and training' means education and 
                        training in--
                                    ``(I) aerospace technology,
                                    ``(II) biotechnology,
                                    ``(III) electronic device 
                                technology,
                                    ``(IV) environmental technology,
                                    ``(V) medical device technology,
                                    ``(VI) computer technology or 
                                equipment, or
                                    ``(VII) advanced materials.
                            ``(ii) Definitions.--For purposes of clause 
                        (i)--
                                    ``(I) Aerospace technology.--The 
                                term `aerospace technology' means 
                                technology used in the manufacture, 
                                design, maintenance, or servicing of 
                                aircraft, aircraft components, or other 
                                aeronautics, including space craft or 
                                space craft components.
                                    ``(II) Biotechnology.--The term 
                                `biotechnology' means technology 
                                (including products and services) 
                                developed as the result of the study of 
                                the functioning of biological systems 
                                from the macro level to the molecular 
                                and sub-atomic levels.
                                    ``(III) Electronic device 
                                technology.--The term `electronic 
                                device technology' means technology 
                                involving microelectronics, 
                                semiconductors, electronic equipment, 
                                instrumentation, radio frequency, 
                                microwave, millimeter electronics, 
                                optical and optic-electrical devices, 
                                or data and digital communications and 
                                imaging devices.
                                    ``(IV) Environmental technology.--
                                The term `environmental technology' 
                                means technology involving the 
                                assessment and prevention of threats or 
                                damage to human health or the 
                                environment, environmental cleanup, or 
                                the development of alternative energy 
                                sources.
                                    ``(V) Medical device technology.--
                                The term `medical device technology' 
                                means technology involving any medical 
                                equipment or product (other than a 
                                pharmaceutical product) which has 
                                therapeutic value, diagnostic value, or 
                                both, and is regulated by the Federal 
                                Food and Drug Administration.
                                    ``(VI) Computer technology or 
                                equipment.--The term `computer 
                                technology or equipment' has the 
                                meaning given such term in section 
                                170(e)(6)(E)(i).
                                    ``(VII) Advanced materials.--The 
                                term `advanced materials' means 
                                materials with engineered properties 
                                created through the development of 
                                specialized processing and synthesis 
                                technology, including ceramics, high 
                                value-added metals, electronics 
                                materials, composites, polymers, and 
                                biomaterials.
                    ``(C) Eligible educational institution.--For 
                purposes of subparagraph (A), the term `eligible 
                educational institution' has the meaning given such 
                term by section 529(e)(5).
    ``(d) Special Rules.--For purposes of this section--
            ``(1) Aggregation rules.--All persons which are treated as 
        a single employer under subsections (a) and (b) of section 52 
        shall be treated as a single taxpayer.
            ``(2) Pass-thru in the case of estates and trusts.--Under 
        regulations prescribed by the Secretary, rules similar to the 
        rules of subsection (d) of section 52 shall apply.
            ``(3) Allocation in the case of partnerships.--In the case 
        of partnerships, the credit shall be allocated among partners 
        under regulations prescribed by the Secretary.
    ``(f) No Double Benefit.--No deduction or credit shall be allowed 
under any other provision of this chapter with respect to any 
expenditure taken into account in computing the amount of the credit 
determined under this section.''
    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986 is 
        amended--
                    (A) by striking out ``plus'' at the end of 
                paragraph (11),
                    (B) by striking out the period at the end of 
                paragraph (12), and inserting a comma and ``plus'', and
                    (C) by adding at the end the following:
            ``(13) the business-provided student education and training 
        credit determined under section 45D.''
            (2) 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 the following:

                              ``Sec. 45D. Business-provided student 
                                        education and training 
                                        credit.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1999.
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