[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2008 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2008

 To amend the Internal Revenue Code of 1986 to allow a business credit 
           for donations for vocational educational purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 28, 2005

  Mr. Pombo 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 a business credit 
           for donations for vocational educational purposes.

    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 ``Public Private Vocational 
Partnership Act of 2005''.

SEC. 2. DONATIONS TO SECONDARY SCHOOLS AND COMMUNITY COLLEGES FOR 
              VOCATIONAL EDUCATION PURPOSES.

    (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. 45J. DONATIONS TO SECONDARY SCHOOLS AND COMMUNITY COLLEGES FOR 
              VOCATIONAL EDUCATION PURPOSES.

    ``(a) General Rule.--For purposes of section 38, in the case of a 
corporation (as defined in section 170(e)(4)(D)), the vocational 
education donation credit determined under this section for the taxable 
year is an amount equal to the sum of--
            ``(1) 90 percent of the fair market value of qualified 
        property donations made during the taxable year, plus
            ``(2) the aggregate of the intern credit amounts.
    ``(b) Limitations.--
            ``(1) Qualified property donations.--The amount allowed as 
        a credit under subsection (a)(1) shall not exceed $50,000.
            ``(2) Intern credit amount.--
                    ``(A) In general.--The amount allowed as a credit 
                under subsection (a)(2) with respect to a qualified 
                intern shall be the amount equal to $100 multiplied by 
                the number of months during the taxable year in which 
                the intern was an employee of the taxpayer.
                    ``(B) Aggregate per intern credit amounts.--The 
                aggregate amount allowed to the taxpayer as a credit 
                under subsection (a)(2) for the taxable year shall not 
                exceed $6,000.
    ``(c) Qualified Property Donations.--For purposes of this section, 
the term `qualified property donations' means a charitable contribution 
(as defined in section 170(c)) of tangible personal property if--
            ``(1) the contribution is to an educational organization 
        described in section 170(b)(1)(A)(ii) which is a secondary 
        school or community college,
            ``(2) substantially all of the use of the property by the 
        donee is for use within the United States for educational 
        purposes that are related to the purpose or function of the 
        donee,
            ``(3) the property is not transferred by the donee in 
        exchange for money, other property, or services, except for 
        shipping, installation and transfer costs,
            ``(4) the property will fit productively into the donee's 
        education plan,
            ``(5) the donee's use and disposition of the property will 
        be in accordance with the provisions of paragraphs (2), (3), 
        and (4), and
            ``(6) the property meets such standards, if any, as the 
        Secretary may prescribe by regulation to assure that the 
        property meets minimum functionality and suitability standards 
        for educational purposes.
    ``(d) Qualified Intern.--For purposes of this section--
            ``(1) In general.--The term `qualified intern' means an 
        individual--
                    ``(A) who is enrolled full-time as a student in a 
                secondary school or community college, and
                    ``(B) who is employed for not more than 20 hours 
                per week by the taxpayer as part of a vocational 
                education course approved by such school or college.
            ``(2) Secondary school.--The term `secondary school' means 
        a secondary school (as defined by section 9101(38) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7801(38)) which offers a program of education in vocational 
        education.
            ``(3) Community college.--The term `community college' 
        means a public or nonprofit private postsecondary regionally 
        accredited institution that provides not less than a 2-year 
        program of instruction that is acceptable for full credit 
        toward a bachelor's degree at an accredited institution and 
        whose highest degree offered is predominantly the associate 
        degree.
    ``(e) Aggregation Rule.--For purposes of subsection (b), all 
persons treated as a single employer under subsection (a) or (b) of 
section 52 or subsection (n) or (o) of section 414 shall be treated as 
one person.
    ``(f) Coordination With Section 170(b).--The limitation which would 
(but for this subsection) apply under section 170(b) for any taxable 
year shall be reduced (but not below zero) by the fair market value of 
property taken into account in determining the credit allowed under 
subsection (a)(1) for such year.''.
    (b) Credit to Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code (relating to general business credit) is 
amended by striking ``plus'' at the end of paragraph (18), by striking 
the period at the end of paragraph (19) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(20) in the case of a corporation (as defined in section 
        170(e)(4)(D)), the vocational education donation credit 
        determined under section 45J(a).''.
    (c) Denial of Double Benefit.--Section 280C of such Code (relating 
to certain expenses for which credits are allowable) is amended by 
adding at the end the following new subsection:
    ``(e) Vocational Education Donations.--The deduction otherwise 
allowed for amounts taken into account under section 45J shall be 
reduced by the amount of the credit determined under section 45J(a) 
with respect to such amounts.''.
    (d) Conforming Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 45I the following new 
item:

``Sec. 45J. Donations to secondary schools and community colleges for 
                            vocational education purposes.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.
                                 <all>