[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 102 Introduced in House (IH)]
107th CONGRESS
1st Session
H. R. 102
To amend the Internal Revenue Code of 1986 to encourage stronger math
and science programs at elementary and secondary schools.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 3, 2001
Mr. Ehlers (for himself, Mr. Kolbe, Mr. Horn, Mr. Baca, Mr. Sandlin,
Mr. Camp, Mr. Filner, and Mr. Gibbons) 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 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 2001''.
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. 45E. 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
(12),
(B) by striking the period at the end of paragraph
(13), and inserting ``, plus'', and
(C) by adding at the end the following new
paragraph:
``(14) the elementary and secondary science, mathematics,
engineering, and technology (SMET) contributions credit
determined under section 45E.''.
(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:
``(10) No carryback of section 45e 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 45E 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. 45E. 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.
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