[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2622 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2622

 To amend the Internal Revenue Code of 1986 to encourage stronger math 
       and science programs at elementary and secondary schools.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 24, 2000

Mr. Roberts (for himself and Ms. Snowe) 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 encourage stronger math 
       and science programs at elementary and secondary schools.

    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 ``National Science Education Incentive 
Act of 2000''.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) As concluded in the report of the Committee on Science 
        of the House of Representatives, ``Unlocking Our Future Toward 
        a New National Science Policy,'' which was adopted by the House 
        of Representatives, the United States must maintain and improve 
        its preeminent position in science and technology in order to 
        advance human understanding of the universe and all it 
        contains, and to improve the lives, health, and freedoms of all 
        people.
            (2) It is estimated that more than half of the economic 
        growth of the United States today results directly from 
        research and development in science and technology. The most 
        fundamental research is responsible for investigating our 
        perceived universe, to extend our observations to the outer 
        limits of what our minds and methods can achieve, and to seek 
        answers to questions that have never been asked before. Applied 
        research continues the process by applying the answers from 
        basic science to the problems faced by individuals, 
        organizations, and governments in the everyday activities that 
        make our lives more livable. The scientific-technological 
        sector of our economy, which has driven our recent economic 
        boom and led the United States to the longest period of 
        prosperity in history, is fueled by the work and discoveries of 
        the scientific community.
            (3) The effectiveness of the United States in maintaining 
        this economic growth will be largely determined by the 
        intellectual capital of the United States. Education is 
        critical to developing this resource.
            (4) The education program of the United States needs to 
        provide for 3 different kinds of intellectual capital. First, 
        it needs scientists and engineers to continue the research and 
        development that is central to the economic growth of the 
        United States. Second, it needs technologically proficient 
        workers who are comfortable and capable dealing with the 
        demands of a science-based, high-technology workplace. Last, it 
        needs scientifically literate voters and consumers to make 
        intelligent decisions about public policy.
            (5) Student performance on the recent Third International 
        Math and Science Study highlights the shortcomings of current 
        K-12 science and mathematics education in the United States, 
        particularly when compared to other countries. We must expect 
        more from our Nation's educators and students if we are to 
        build on the accomplishments of previous generations. New 
        methods of teaching mathematics and science are required, as 
        well as better curricula and improved training of teachers.
            (6) Science is more than a collection of facts, theories, 
        and results. It is a process of inquiry built upon observations 
        and data that leads to a way of knowing and explaining in 
        logically derived concepts and theories.
            (7) Students should learn science primarily by doing 
        science. Science education ought to reflect the scientific 
        process and be object-oriented, experiment-centered, and 
        concept-based.
            (8) Children are naturally curious and inquisitive. To 
        successfully tap into these innate qualities, education in 
        science must begin at an early age and continue throughout the 
        entire school experience.
            (9) Teachers provide the essential connection between 
        students and the content they are learning. High-quality 
        prospective teachers need to be identified and recruited by 
        presenting to them a career that is respected by their peers, 
        is financially and intellectually rewarding, and contains 
        sufficient opportunities for advancement.
            (10) Teachers need to have incentives to remain in the 
        classroom and improve their practice, and training of teachers 
        is essential if the results are to be good. Teachers need to be 
        knowledgeable of their content area, of their curriculum, of 
        up-to-date research in teaching and learning, and of techniques 
        that can be used to connect that information to their students 
        in their classroom.

SEC. 3. REFUNDABLE CREDIT FOR PORTION OF TUITION PAID FOR UNDERGRADUATE 
              EDUCATION OF CERTAIN TEACHERS.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. TUITION FOR UNDERGRADUATE EDUCATION OF CERTAIN TEACHERS.

    ``(a) In General.--In the case of an individual who is an eligible 
teacher for the taxable year, there shall be allowed as a credit 
against the tax imposed by this subtitle an amount equal to 10 percent 
of qualified undergraduate tuition paid by such individual.
    ``(b) Limitations.--
            ``(1) Dollar amount.--The credit allowed by this section 
        for any taxable year shall not exceed $1,000.
            ``(2) Credit allowed only for 10 years.--No credit shall be 
        allowed under this section for any taxable year after the 10th 
taxable year for which credit is allowed under this section.
    ``(c) Eligible Teacher.--For purposes of this section--
            ``(1) In general.--The term `eligible teacher' means, with 
        respect to a taxable year, any individual--
                    ``(A) who is a full-time teacher, including a full-
                time substitute teacher, in any of grades kindergarten 
                through 12th grade for the academic year ending in such 
                taxable year,
                    ``(B)(i) who teaches primarily math, science, 
                engineering, or technology courses in 1 or more of 
                grades 9 through 12 during such academic year, or
                    ``(ii) who teaches math, science, engineering, or 
                technology courses in 1 or more of grades kindergarten 
                through 8 during such academic year.
                    ``(C) who completed a 5-year teaching training 
                program which meets the requirements of paragraph (3), 
                and
                    ``(D) who received a baccalaureate or similar 
                degree with a major in mathematics, science, 
                engineering, or technology from a qualified educational 
                institution.
            ``(2) Special rule for administrative personnel.--School 
        administrative functions shall be treated as teaching courses 
        referred to in paragraph (1)(B) if such functions primarily 
        relate to such courses or are for a school which focuses 
        primarily on such courses.
            ``(3) 5-year teacher training program.--For purposes of 
        paragraph (1)(C)--
                    ``(A) Elementary school teachers.--In the case of 
                an elementary school teacher, a teacher training 
                program meets the requirements of this paragraph if--
                            ``(i) the program requires, in addition to 
                        education courses, that the student complete 
                        courses in physics, chemistry, and biology, and
                            ``(ii) the program recommends completion of 
                        an earth science.
                    ``(B) Middle and high school teachers.--In the case 
                of a middle or high school teacher, a teacher training 
                program meets the requirements of this paragraph if the 
                program requires, in addition to education courses, 
                that the student also major in a science referred to in 
                subparagraph (A) and that the student also complete 
                introductory courses in 2 other sciences referred to in 
                subparagraph (A).
            ``(4) Qualified educational institution.--The term 
        `qualified educational institution' means any eligible 
        educational institution (as defined in section 25A(f)(2)) if--
                    ``(A) more than 80 percent of such institution's 
                graduates who apply for certification by any State as a 
                teacher are so certified, and
                    ``(B) such institution's school of education (or 
                equivalent unit) has an advisory committee--
                            ``(i) which includes (on a rotating basis 
                        or otherwise) practicing mathematicians and 
                        scientists and representatives from several of 
                        the appropriate science, mathematics, 
                        engineering, and technology departments of such 
                        institution, and
                            ``(ii) which publishes annually a report 
                        detailing curricula reforms for such school (or 
                        unit) designed to align teacher training 
                        curricula with State requirements and 
                        expectations.
    ``(d) Qualified Undergraduate Tuition.--For purposes of this 
section, the term `qualified undergraduate tuition' means qualified 
higher education expenses (as defined in section 529(e)(3)) for a 
qualified educational institution, reduced as provided in section 
25A(g)(2) and by any credit allowed by section 25A with respect to such 
expenses.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be appropriate to carry out the purposes of this section.''.
    (b) Conforming Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting before the period ``, or 
        from section 35 of such Code''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        the last item and inserting the following new items:

                              ``Sec. 35. Tuition for undergraduate 
                                        education of certain teachers.
                              ``Sec. 36. Overpayments of tax.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act; except that only periods of being an eligible teacher (as 
defined in section 35(c) of the Internal Revenue Code of 1986, as added 
by this section) after such date shall be taken into account under 
section 35(b)(2) of such Code, as so added.

SEC. 4. CREDITS FOR CERTAIN CONTRIBUTIONS BENEFITING SCIENCE, 
              MATHEMATICS, ENGINEERING, AND TECHNOLOGY EDUCATION AT THE 
              ELEMENTARY AND SECONDARY SCHOOL LEVEL.

    (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. 45D. CONTRIBUTIONS BENEFITING SCIENCE, MATHEMATICS, ENGINEERING, 
              AND TECHNOLOGY EDUCATION AT THE ELEMENTARY AND SECONDARY 
              SCHOOL LEVEL.

    ``(a) In General.--For purposes of section 38, the elementary and 
secondary science, mathematics, engineering, and technology (SMET) 
contributions credit determined under this section for the taxable year 
is an amount equal to 100 percent of the qualified SMET contributions 
of the taxpayer for such taxable year.
    ``(b) Qualified SMET Contributions.--For purposes of this section, 
the term `qualified SMET contributions' means--
            ``(1) SMET school contributions,
            ``(2) SMET teacher externship expenses, and
            ``(3) SMET teacher training expenses.
    ``(c) SMET School Contributions.--For purposes of this section--
            ``(1) In general.--The term `SMET school contributions' 
        means--
                    ``(A) SMET property contributions, and
                    ``(B) SMET service contributions.
            ``(2) SMET property contributions.--The term `SMET property 
        contributions' means the amount which would (but for subsection 
        (f)) be allowed as a deduction under section 170 for a 
        charitable contribution of SMET inventory property if--
                    ``(A) the donee is an elementary or secondary 
                school described in section 170(b)(1)(A)(ii),
                    ``(B) substantially all of the use of the property 
                by the donee is within the United States for 
                educational purposes in any of the grades K-12 that are 
                related to the purpose or function of the donee,
                    ``(C) the original use of the property begins with 
                the donee,
                    ``(D) the property will fit productively into the 
                donee's education plan,
                    ``(E) the property is not transferred by the donee 
                in exchange for money, other property, or services, 
                except for shipping, installation and transfer costs, 
                and
                    ``(F) the donee's use and disposition of the 
                property will be in accordance with the provisions of 
                subparagraphs (B) and (E).
        The determination of the amount of deduction under section 170 
        for purposes of this paragraph shall be made as if the 
        limitation under section 170(e)(3)(B) applied to all SMET 
        inventory property.
            ``(3) SMET service contributions.--The term `SMET service 
        contributions' means the amount paid or incurred during the 
        taxable year for SMET services provided in the United States 
        for the exclusive benefit of students at an elementary or 
        secondary school described in section 170(b)(1)(A)(ii) but only 
        if--
                    ``(A) the taxpayer is engaged in the trade or 
                business of providing such services on a commercial 
                basis, and
                    ``(B) no charge is imposed for providing such 
                services.
            ``(4) SMET inventory property.--The term `SMET inventory 
        property' means, with respect to any contribution to a school, 
        any property--
                    ``(A) which is described in paragraph (1) or (2) of 
                section 1221(a) with respect to the donor, and
                    ``(B) which is determined by the school to be 
                needed by the school in providing education in grades 
                K-12 in the areas of science, mathematics, engineering, 
                or technology.
            ``(5) SMET services.--The term `SMET services' means, with 
        respect to any contribution to a school, any service determined 
        by the school to be needed by the school in providing education 
        in grades K-12 in the areas of science, mathematics, 
        engineering, or technology, including teaching courses of 
        instruction at such school in any such area.
    ``(d) SMET Teacher Externship Expenses.--For purposes of this 
section--
            ``(1) In general.--The term `SMET teacher externship 
        expenses' means any amount paid or incurred to carry out a SMET 
        externship program of the taxpayer but only to the extent that 
        such amount is attributable to the participation in such 
        program of any eligible SMET teacher, including amounts paid to 
        such a teacher as a stipend while participating in such 
        program.
            ``(2) SMET externship program.--The term `SMET externship 
        program' means any program--
                    ``(A) established by a taxpayer engaged in a trade 
                or business within an area of science, mathematics, 
                engineering, or technology, and
                    ``(B) under which eligible SMET teachers receive 
                training to enhance their teaching skills in the areas 
                of science, mathematics, engineering, or technology or 
                otherwise improve their knowledge in such areas.
            ``(3) Eligible smet teacher.--The term `eligible SMET 
        teacher' means any individual--
                    ``(A) who is a teacher in grades K-12 at an 
                educational organization described in section 
                170(b)(1)(A)(ii) which is located in the United States 
                or which is located on a United States military base 
                outside the United States, and
                    ``(B) whose teaching responsibilities at such 
                school include, or are likely to include, any course in 
                the areas of science, mathematics, engineering, or 
                technology.
    ``(e) SMET Teacher Training Expenses.--The term `SMET teacher 
training expenses' means any amount paid or incurred by a taxpayer 
engaged in a trade or business within an area of science, mathematics, 
engineering, or technology which is attributable to the participation 
of any eligible SMET teacher in a regular training program provided to 
employees of the taxpayer which is determined by such teacher's school 
as enhancing such teacher's teaching skills in the areas of science, 
mathematics, engineering, or technology.
    ``(f) Denial of Double Benefit.--No deduction shall be allowed 
under this chapter for any amount allowed as a credit under this 
section.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended--
                    (A) by striking ``plus'' at the end of paragraph 
                (11),
                    (B) by striking the period at the end of paragraph 
                (12), and inserting ``, plus'', and
                    (C) by adding at the end the following new 
                paragraph:
            ``(13) the elementary and secondary science, mathematics, 
        engineering, and technology (SMET) contributions credit 
        determined under section 45D.''.
            (2) Subsection (d) of section 39 of such Code (relating to 
        carryback and carryforward of unused credits) is amended by 
        adding at the end the following new paragraph:
            ``(9) No carryback of section 45d credit before enactment 
        of credit.--No portion of the unused business credit for any 
        taxable year which is attributable to the credit determined 
        under section 45D may be carried back to a taxable year 
        beginning before the date of the enactment of this 
        paragraph.''.
            (3) 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 new item:

                              ``Sec. 45D. Contributions benefiting 
                                        science, mathematics, 
                                        engineering, and technology 
                                        education at the elementary and 
                                        secondary school level.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 5. ASSURANCE OF CONTINUED LOCAL CONTROL.

    Nothing in this Act may be construed to authorize any department, 
agency, officer, or employee of the United States to exercise any 
direction, supervision, or control over the curriculum, program of 
instruction, administration, or personnel of any educational 
institution or school system.
                                 <all>