1.This Act may be cited as
the Education Competitiveness Act of
2006
.
2.The table of contents
for this Act is as follows:
Sec. 1. Short
title.
Sec. 2. Table of contents.
Sec. 3. Definitions.
TITLE I—Education Trust Fund
Sec. 101. Education Trust Fund.
TITLE II—Teaching competitiveness
Sec. 201. Findings.
Sec. 202. Future Early Childhood Education Teacher
Scholarships.
Sec. 203. Future Science, Technology, Engineering, and
Mathematics Teacher Scholarships.
Sec. 204. Future Master Science, Technology, Engineering, and
Mathematics Teacher Scholarships.
Sec. 205. Future Critical Language Teacher
Scholarships.
Sec. 206. Assisting teachers in rural or underserved
areas.
Sec. 207. Advanced Placement and International Baccalaureate
Programs.
TITLE III—Committing to Competitiveness Early by Supporting
Universal Voluntary Prekindergarten
Sec. 301. Findings.
Sec. 302. Universal voluntary prekindergarten by
2020.
Sec. 303. Prekindergarten through grade 16 (PK–16)
collaboratives.
Sec. 304. Advancing early childhood education teacher
qualifications.
TITLE IV—Encouraging enrichment activities by supporting middle
schools and secondary schools
Sec. 401. Findings.
Sec. 402. Advancing knowledge with internships and summer
programs.
Sec. 403. Insight, Partnership, and Initiative
Grants.
TITLE V—Committing to education for a competitive
economy
Sec. 501. Findings.
Sec. 502. Summer science and engineering
institutes.
Sec. 503. Specialty science and mathematics secondary
schools.
Sec. 504. Science, technology, engineering, and mathematics for
tomorrow program established.
Sec. 505. Federal Pell Grants.
Sec. 506. Research grants for early career
scientists.
TITLE VI—Restoring our commitment to Indian education
Sec. 601. Findings.
Sec. 602. Johnson-O'Malley grants.
Sec. 603. Appropriations for Indian higher
education.
Sec. 604. Language immersion programs.
TITLE VII—Life long learning
Sec. 701. Findings.
Sec. 702. Job skill training partnerships.
Sec. 703. Small business innovation partnerships.
Sec. 704. Job skill training authorization of
appropriations.
Sec. 705. Distance learning.
TITLE VIII—Education tax incentives
Sec. 800. Findings.
Subtitle A—Benefits for current expenses
Sec. 801. Refundable higher education credit.
Sec. 802. Increased repayment period for higher education loans
from qualified retirement plans.
Sec. 803. Increased employer provided educational
assistance.
Sec. 804. Above-the-line deduction for certain expenses of
elementary and secondary school teachers.
Subtitle B—Benefits for future expenses
Sec. 811. Young Savers Accounts.
Subtitle C—Benefits for past expenses
Sec. 821. Increased deduction for student loan
interest.
Subtitle D—Other tax incentives
Sec. 831. Extension of QZABs and expansion to financing certain
postsecondary institutions.
Sec. 832. Additional standard deduction for real property taxes
for nonitemizers.
Sec. 833. Extension and expansion of charitable contribution
allowed for scientific property used for research and for computer technology
and equipment used for educational purposes.
Sec. 834. Modification of charitable deduction for
contributions of book inventory.
3.Unless otherwise specified in this Act, the
terms used in this Act have the meanings given the terms in section 9101 of the
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).
<enum>I</enum><header>Education Trust
Fund</header>
<section id="id91FD2F2D258E42BFBE144AB4BE5B69D9"><enum>101.</enum><header>Education
Trust Fund</header>
<subsection id="IDE1FA3E8E39D24EFE9CA7A9CFB11048BF"><enum>(a)</enum><header>Creation of
Trust Fund</header><text>There is established in the Treasury of the United
States a trust fund to be known as the <quote>Education Trust Fund</quote>,
consisting of such amounts as may be appropriated or credited to the Education
Trust Fund.</text>
</subsection><subsection id="id1791B043EED340CFACE828A02BCA7F51"><enum>(b)</enum><header>Rules regarding
transfers to and management of Education Trust Fund</header><text>For purposes
of this section, rules similar to the rules of sections 9601 and 9602 of the
Internal Revenue Code of 1986 shall apply.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id0BB3A0FCD1C840A297B1C985FE64B45B"><enum>(c)</enum><header>Distribution of
amounts in Education Trust Fund</header><text display-inline="yes-display-inline">Amounts in the Education Trust Fund shall
be available, as provided by appropriation Acts, for making expenditures before
October 1, 2011, to meet those obligations of the United States heretofore or
hereafter incurred which are authorized under this Act.</text>
</subsection></section><enum>II</enum><header>Teaching
competitiveness</header>
<section id="idAD6087DF8BC14B74B2AF7162C13552D5"><enum>201.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
<paragraph id="ID312cd71f4dc746eb882cb194bd7374d7"><enum>(1)</enum><text>Teachers are
responsible for educating the future workforce.</text>
</paragraph><paragraph id="idA7094F4E23F54C5D8500A2C45624F0C1"><enum>(2)</enum><text>There is a
teacher shortage in many places across the United States.</text>
</paragraph><paragraph id="id8C82BF3F027146B0BB7E46758CA2FD9E"><enum>(3)</enum><text>We must prepare
teachers to educate tomorrow’s leaders.</text>
</paragraph></section><section id="idC30648E756364B8DBAE38AAA9E0B3AA5"><enum>202.</enum><header>Future Early
Childhood Education Teacher Scholarships</header>
<subsection id="ID3b4e963b4908449e918b8f0d2a25733d"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to increase the number and percentage of citizens of
the United States who earn baccalaureate degrees in early childhood education
by—</text>
<paragraph id="id4BE15F0BB2CF4686AE1EEBF19EEDBEC2"><enum>(1)</enum><text>providing 25,000
new competitive merit-based undergraduate scholarships to students who are
citizens of the United States, for the purpose of enabling each such student to
obtain a baccalaureate degree in early childhood education at an institution of
higher education; and</text>
</paragraph><paragraph id="idFF098027B39C48A5AF39986530D015D6"><enum>(2)</enum><text>by assisting
institutions of higher education in expanding and improving the teacher
education programs offered by the institutions.</text>
</paragraph></subsection><subsection id="IDf7f75ff6f6db46c5a718869b94e0abee"><enum>(b)</enum><header>Scholarships</header>
<paragraph id="idD7AD5BAB1E8F4E6FA241ADCC6678AB23"><enum>(1)</enum><header>In
general</header><text>From the amounts authorized under subsection (h), the
Secretary shall award scholarships to eligible students that shall be used by
the eligible students to pay for qualifying expenses at the institution of
higher education of the eligible students' choosing.</text>
</paragraph><paragraph id="ID3cd2e0bb0df547df9969e7c7d8e95e2b"><enum>(2)</enum><header>Future early
childhood education teacher scholarships</header><text>A scholarship awarded
under this subsection shall be known as a <quote>Future Early Childhood
Education Teacher Scholarship</quote>.</text>
</paragraph><paragraph id="id8BCEFCD4B0B145CF95B12FDA3D9CF813"><enum>(3)</enum><header>Award
basis</header><text>In awarding scholarships under this section, the Secretary
shall give preference to students who agree to satisfy the teaching requirement
under paragraph (5) by teaching in a low- or middle-income school or a rural
school.</text>
</paragraph><paragraph id="idDBCD07A1B6CC47E89598293898345792"><enum>(4)</enum><header>Amount;
duration</header>
<subparagraph id="id347532D853D24189B6EAF522F8550807"><enum>(A)</enum><header>Amount</header><text>A
scholarship award under this subsection shall be in an amount of not more than
the average cost of attendance, as such term is defined in section 472 of the
Higher Education Act of 1965 (20 U.S.C. 10877ll), for a student attending a
teacher preparation program at an institution of higher education in the State,
as determined by the Secretary, in consultation with the State and the State
prekindergarten through grade 16 leadership collaborative described in section
303, if applicable.</text>
</subparagraph><subparagraph id="idE94D1E11899449E590A4AA8882906FBA"><enum>(B)</enum><header>Duration of
scholarship</header><text>A scholarship awarded to an eligible student under
this subsection shall be for the number of years necessary for the eligible
student to earn a baccalaureate degree in early childhood education on a
full-time or part-time basis, except that—</text>
<clause id="id4ED4FEB273AB4C1184F5D3D99D62A021"><enum>(i)</enum><text>in
the case of a student pursuing a baccalaureate degree on a full-time basis, a
scholarship under this subsection shall be awarded for a period of not more
than 4 years; and</text>
</clause><clause id="idF4A8B35A887D44F18B9410C69164865A"><enum>(ii)</enum><text>in
the case of a student pursuing a baccalaureate degree on a part-time basis, a
scholarship under this subsection shall be awarded for a period of not more
than 6 years.</text>
</clause></subparagraph></paragraph><paragraph id="id823F8FA527CA4E51BF3C46B53BCD3ABC"><enum>(5)</enum><header>Teaching
requirement</header><text>Each eligible student awarded a scholarship under
this subsection shall enter into an agreement with the Secretary under which
the eligible student agrees—</text>
<subparagraph id="id00873BF86D5F490E9483525E177EA19F"><enum>(A)</enum><text>to teach early
childhood education for a period of 4 school years following receipt of the
baccalaureate degree for which the scholarship was awarded; or</text>
</subparagraph><subparagraph id="id1C9C811299FF4BEB8AA4BE25C5B4B3D9"><enum>(B)</enum><text>to work in
employment that improves education, as determined by the Secretary pursuant to
regulations, for a period of 4 years following receipt of such degree.</text>
</subparagraph></paragraph><paragraph id="id082F8D63DC0E4E4C9FC0A04FCE0A02F2"><enum>(6)</enum><header>Scholarship
repayment provisions</header><text>A recipient of a scholarship under this
section who is determined by the Secretary to violate the agreement entered
into under paragraph (5) shall be required to repay a pro rata amount of the
scholarship award received, plus interest, on a schedule and at a rate of
interest to be prescribed by the Secretary pursuant to regulations promulgated
under this subsection.</text>
</paragraph></subsection><subsection id="id0034523383614502A6B20279C586627C"><enum>(c)</enum><header>Grants</header>
<paragraph id="idF1A1429919A341459130999D20FD1208"><enum>(1)</enum><header>Program
authorized</header><text>From the amounts authorized under subsection (e), the
Secretary shall award grants to eligible institutions of higher education to
enable the eligible institutions to expand and improve the teacher preparation
programs of the eligible institutions.</text>
</paragraph><paragraph id="idF91C3ADC38EF4B5585EFC35203296048"><enum>(2)</enum><header>Application</header>
<subparagraph id="id1A0E8C5E13614DDBA980D04FB1A34ACB"><enum>(A)</enum><header>In
general</header><text>An eligible institution of higher education desiring a
grant under this subsection shall submit an application to the Secretary at
such time, in such manner, and containing such information as the Secretary may
require.</text>
</subparagraph><subparagraph id="idD6E58BD64B6E486C83C3EFC9ED96FDF3"><enum>(B)</enum><header>Contents</header><text>The
application described in subparagraph (A) shall include a description of the
accountability measures that the eligible institution of higher education will
use to evaluate the effectiveness of the teacher preparation program assisted
by a grant under this section.</text>
</subparagraph></paragraph><paragraph id="idFE3A478445FD4A5B974D1C6AC61D646F"><enum>(3)</enum><header>Report</header><text>Not
later than 60 days after the last day of a grant under this subsection, an
eligible institution of higher education receiving a grant under this
subsection shall prepare and submit to the Secretary a report describing the
results of the grant, using the accountability measures described in paragraph
(2)(B).</text>
</paragraph><paragraph id="id8A6E6098CAFA4C58ADF2B2830846DE41"><enum>(4)</enum><header>Definition of
eligible institution of higher education</header><text>In this section, the
term <term>eligible institution of higher education</term> means an institution
of higher education that offers a teacher preparation program that satisfies
the requirements for teacher licensure or certification in a State.</text>
</paragraph></subsection><subsection id="idE2ADEF1AAE974E6A8176771F2B58298D"><enum>(d)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="id3C64116D8AB04787A1827FB292CFDEA4"><enum>(1)</enum><header>Eligible
student</header><text>The term <term>eligible student</term> means a student
who—</text>
<subparagraph id="idDA4D6900CD93483FAF1D08D9162E2CDF"><enum>(A)</enum><text>is a citizen of
the United States;</text>
</subparagraph><subparagraph id="id3D2712EB5C9E4700867D72331F58CD80"><enum>(B)</enum><text>is attending an
institution of higher education;</text>
</subparagraph><subparagraph id="idF25DBA39F32F421194D033444DBB5CD6"><enum>(C)</enum><text>is enrolled, or
will be enrolled at the start of the next academic year, in a course of study
at an institution of higher education that leads to a baccalaureate degree in
early childhood education;</text>
</subparagraph><subparagraph id="idC5CF74C66316415481362DF9AFC7C1D3"><enum>(D)</enum><text>demonstrates
aptitude, as determined by the Secretary, in early childhood education;
or</text>
</subparagraph><subparagraph id="id3D93713A120943769BDE835669610AE3"><enum>(E)</enum><text>for each year of
a scholarship under this section, demonstrates continued academic achievement
and progress, as determined by the Secretary, toward completion of a
baccalaureate degree in early childhood education.</text>
</subparagraph></paragraph><paragraph commented="no" id="id246CC4A27993438C81C3A8A1386F2B3E"><enum>(2)</enum><header>Institution of
higher education</header><text>The term <term>institution of higher
education</term> has the meaning given the term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).</text>
</paragraph><paragraph id="id398DD4E0828C44FFA10BC75546B65657"><enum>(3)</enum><header>Qualified
expenses</header><text>The term <term>qualified expenses</term> means the
tuition, books, fees, supplies, and equipment required for a course of
instruction leading to a baccalaureate degree in early childhood education at
an institution of higher education of the eligible student's choosing.</text>
</paragraph><paragraph id="id84F6993A5718429F8B5C86B7618A6F29"><enum>(4)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Education.</text>
</paragraph></subsection><subsection id="IDfc09d3bdff1742a4b2a78a4879bd8cf1"><enum>(e)</enum><header>Authorization
of appropriations</header>
<paragraph id="idD2A3079C307A4196AB50B77F5BC88E10"><enum>(1)</enum><header>In
general</header><text>There are authorized to be appropriated to carry out this
section—</text>
<subparagraph id="IDa913f6e75b4b45cea76a742f8a122d3c"><enum>(A)</enum><text>$375,000,000 for
fiscal year 2007;</text>
</subparagraph><subparagraph id="IDa9b295b622664629ae4979873f8afd1d"><enum>(B)</enum><text>$750,000,000 for
fiscal year 2008;</text>
</subparagraph><subparagraph id="ID719976f270db4c9cb09be9b6d7a58abe"><enum>(C)</enum><text>$1,125,000,000
for fiscal year 2009; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDcf9dacd8ba74449bbc74cdf4ebc33585"><enum>(D)</enum><text>$1,500,000,000
for each of the fiscal years 2010 and 2011.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6452B20146F047188F4D6DAD194493E6"><enum>(2)</enum><header>Distribution</header><text>From
the amounts appropriated under paragraph (1) for a fiscal year, the Secretary
shall use—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id31D4EC097C894D7888B297EACDA6CEFD"><enum>(A)</enum><text>not less than 98
percent of such amounts to award scholarships under subsection (b) for the
fiscal year; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA67B97039A4942C8B84B111B8121FA45"><enum>(B)</enum><text>not more than 2
percent of such amounts to award grants under subsection (c) for the fiscal
year.</text>
</subparagraph></paragraph></subsection></section><section commented="no" id="id038721D3000B42C08404BDF351A2F161"><enum>203.</enum><header>Future
Science, Technology, Engineering, and Mathematics Teacher Scholarships</header>
<subsection id="id7637B897017341399B18070FDBC1DBAD"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to increase the number and percentage of citizens of
the United States who earn baccalaureate degrees in science, technology,
engineering, or mathematics by providing 25,000 new competitive merit-based
undergraduate scholarships to students who are citizens of the United States,
for the purpose of enabling each such student to obtain a baccalaureate degree
in science, technology, engineering, or mathematics at an institution of higher
education.</text>
</subsection><subsection id="id0BA6F01B2051409F8D9F460AF922F304"><enum>(b)</enum><header>Scholarships</header>
<paragraph id="idD5FEC0D60F0842E3B8D616E58F08FB17"><enum>(1)</enum><header>In
general</header><text>From the amounts authorized under subsection (h), the
Secretary shall award scholarships to eligible students that shall be used by
the eligible students to pay for qualifying expenses at the institution of
higher education of the eligible students' choosing.</text>
</paragraph><paragraph id="idD25340E67CA54B17BFC8CB3F4EA7B55E"><enum>(2)</enum><header>Future
mathematics and science teacher scholarships</header><text>A scholarship
awarded under this section shall be known as a <quote>Future Science,
Technology, Engineering, or Mathematics Teacher Scholarship</quote>.</text>
</paragraph></subsection><subsection id="id9C6CD4CD811E47E683874F3BC8A0FABE"><enum>(c)</enum><header>Award
basis</header><text>In awarding scholarships under this section, the Secretary
shall give preference to students who agree to satisfy the teaching requirement
under subsection (e) by teaching in a low- or middle-income school or a rural
school.</text>
</subsection><subsection id="id6369F31D7D654792893075F4548A1A9E"><enum>(d)</enum><header>Amount;
duration</header>
<paragraph id="id1B5E2CA76BB14551A01396FB6019CEFC"><enum>(1)</enum><header>Amount</header><text>A
scholarship award under this section shall be in an amount of not more than the
average cost of attendance, as such term is defined in section 472 of the
Higher Education Act of 1965 (20 U.S.C. 10877ll), for a student attending a
baccalaureate degree program in science, technology, engineering, or
mathematics at an institution of higher education in the State, as determined
by the Secretary, in consultation with the State.</text>
</paragraph><paragraph id="id9F1B0B67F4C44EFDBC345ED064EEA4F2"><enum>(2)</enum><header>Duration of
scholarship</header><text>A scholarship awarded to an eligible student under
this section shall be for the number of years necessary for the eligible
student to earn a baccalaureate degree in science, technology, engineering, or
mathematics on a full-time or part-time basis, except that—</text>
<subparagraph id="id3544A076CDB64A04BEFDE50EACDF1CC3"><enum>(A)</enum><text>in the case of a
student pursuing a baccalaureate degree on a full-time basis, a scholarship
under this section shall be awarded for a period of not more than 4 years;
and</text>
</subparagraph><subparagraph id="idCBB479249A8145FEBE9BE68C7C883EAA"><enum>(B)</enum><text>in the case of a
student pursuing a baccalaureate degree on a part-time basis, a scholarship
under this section shall be awarded for a period of not more than 6
years.</text>
</subparagraph></paragraph></subsection><subsection id="id0608953129C647A2B390BB18D402E646"><enum>(e)</enum><header>Teaching
requirement</header><text>Each eligible student awarded a scholarship under
this section shall enter into an agreement with the Secretary under which the
eligible student agrees—</text>
<paragraph id="id1A9E0095767F4CAA8E194D03E7BB209E"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id45A3455F21574293ACDCA0A9A481C7B5"><enum>(A)</enum><text>to teach science,
technology, engineering, or mathematics at an elementary school or secondary
school for a period of 4 school years following receipt of the baccalaureate
degree for which the scholarship was awarded; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id644DB0B02F8349A0B250798802D161B2" indent="up1"><enum>(B)</enum><text>to meet any teacher training
requirements determined necessary by the State in order to carry out
subparagraph (A); or</text>
</subparagraph></paragraph><paragraph id="idC2A4044A74E34156A3C89092FC889C7B"><enum>(2)</enum><text>to work in
employment that improves education, as determined by the Secretary pursuant to
regulations, for a period of 4 years following receipt of such degree.</text>
</paragraph></subsection><subsection id="id4F090D61AED14934B517220A516DAC30"><enum>(f)</enum><header>Scholarship
repayment provisions</header><text>A recipient of a scholarship under this
section who is determined by the Secretary to violate the agreement entered
into under subsection (e) shall be required to repay a pro rata amount of the
scholarship award received, plus interest, on a schedule and at a rate of
interest to be prescribed by the Secretary pursuant to regulations promulgated
under this section.</text>
</subsection><subsection id="idD13DEDA74F5C4B99AFCB52D9A8F9DE6A"><enum>(g)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="id89BBEDA2462C44E1BD43775D8D9E0F57"><enum>(1)</enum><header>Eligible
student</header><text>The term <term>eligible student</term> means a student
who—</text>
<subparagraph id="id5D4A42773C604D3B8EAFE23A10553B0E"><enum>(A)</enum><text>is a citizen of
the United States;</text>
</subparagraph><subparagraph id="idB63B8D17A0114029AF04502E06B666C9"><enum>(B)</enum><text>is attending an
institution of higher education;</text>
</subparagraph><subparagraph id="id7F1904A7C55E416C9A438413223E8EE8"><enum>(C)</enum><text>is enrolled, or
will be enrolled at the start of the next academic year, in a course of study
at an institution of higher education that leads to a baccalaureate degree in
science, technology, engineering, or mathematics;</text>
</subparagraph><subparagraph id="id7FD2B60F55FF4E0B8B5584054B92A383"><enum>(D)</enum><text>demonstrates
aptitude, as determined by the Secretary, in science, technology, engineering,
or mathematics; or</text>
</subparagraph><subparagraph id="idEF38913073B74BE5B8DBCAE0EDE78B90"><enum>(E)</enum><text>for each year of
a scholarship under this section, demonstrates continued academic achievement
and progress, as determined by the Secretary, toward completion of a
baccalaureate degree in science, technology, engineering, or
mathematics.</text>
</subparagraph></paragraph><paragraph commented="no" id="id099971F5FFC3465693E5375A04C09B43"><enum>(2)</enum><header>Institution of
higher education</header><text>The term <term>institution of higher
education</term> has the meaning given the term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).</text>
</paragraph><paragraph id="idB3A552FE32CC4C8B833B4A6DCD80A4B7"><enum>(3)</enum><header>Qualified
expenses</header><text>The term <term>qualified expenses</term> means the
tuition, books, fees, supplies, and equipment required for a course of
instruction leading to a baccalaureate degree in science, technology,
engineering, or mathematics at an institution of higher education of the
eligible student's choosing.</text>
</paragraph><paragraph id="id1FC1B553136642EBB3915819A9AD4A56"><enum>(4)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Education.</text>
</paragraph></subsection><subsection id="id737DB4005D9F4B77BEBA86798329DC3E"><enum>(h)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section—</text>
<paragraph id="idA4169184F0FA448A831E9974CC2DCA13"><enum>(1)</enum><text>$375,000,000 for
fiscal year 2007;</text>
</paragraph><paragraph id="id7355D1F421034BB8A57F438973F9D657"><enum>(2)</enum><text>$750,000,000 for
fiscal year 2008;</text>
</paragraph><paragraph id="id126D2AA835E248C1AA41C9DFEA5380B4"><enum>(3)</enum><text>$1,125,000,000
for fiscal year 2009; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3E4678CF624F42EAA805BABC3E0EDEDE"><enum>(4)</enum><text>$1,500,000,000
for each of the fiscal years 2010 and 2011.</text>
</paragraph></subsection></section><section commented="no" id="id30C4A72A65594958A839DD6B36935306"><enum>204.</enum><header>Future Master
Science, Technology, Engineering, and Mathematics Teacher Scholarships</header>
<subsection id="id996A870FA0014770AA13C23E70B274FC"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to increase the number and percentage of citizens of
the United States who are teachers and earn a master's degree in science,
technology, engineering, or mathematics by providing 25,000 new competitive
merit-based graduate scholarships to students who are teachers and citizens of
the United States, for the purpose of enabling each such student to obtain a
master's degree in science, technology, engineering, or mathematics at an
institution of higher education.</text>
</subsection><subsection id="id74DC5C0C1DEE40E5B470492548C9FFB0"><enum>(b)</enum><header>Scholarships</header>
<paragraph id="id09D68BDFAF7F4BFA8756BDA5622FEC09"><enum>(1)</enum><header>In
general</header><text>From the amounts authorized under subsection (h), the
Secretary shall award scholarships to eligible students that shall be used by
the eligible students to pay for qualifying expenses at the institution of
higher education of the eligible students' choosing.</text>
</paragraph><paragraph id="id38534114F88C414CA3AFE330C6C4474F"><enum>(2)</enum><header>Future master
mathematics and science teacher scholarships</header><text>A scholarship
awarded under this section shall be known as a <quote>Future Master Science,
Technology, Engineering, and Mathematics Teacher Scholarship</quote>.</text>
</paragraph></subsection><subsection id="id1CDB25F13A3E4C709FDD8BFFD47CB811"><enum>(c)</enum><header>Award
basis</header><text>In awarding scholarships under this section, the Secretary
shall give preference to students who agree to satisfy the teaching requirement
under subsection (e) by teaching in a low- or middle-income school or a rural
school.</text>
</subsection><subsection id="idEF658FDE38704111A100EF87E53E47BE"><enum>(d)</enum><header>Amount;
duration</header>
<paragraph id="idF8768BEAD25B4A24BA2C036C34001784"><enum>(1)</enum><header>Amount</header><text>A
scholarship award under this section shall be in an amount of not more than the
average cost of attendance, as such term is defined in section 472 of the
Higher Education Act of 1965 (20 U.S.C. 10877ll), for a student attending a
master's degree program in science, technology, engineering, or mathematics at
an institution of higher education in the State, as determined by the
Secretary, in consultation with the State.</text>
</paragraph><paragraph id="id653DE2EED06E46DAB20AA745CDFA9396"><enum>(2)</enum><header>Duration of
scholarship</header><text>A scholarship awarded to an eligible student under
this section shall be for the number of years necessary for the eligible
student to earn a master's degree in science, technology, engineering, or
mathematics on a full-time or part-time basis, except that—</text>
<subparagraph id="id47C24D816535449B9D6F77AA998C137F"><enum>(A)</enum><text>in the case of a
student pursuing a master's degree on a full-time basis, a scholarship under
this section shall be awarded for a period of not more than 2 years; and</text>
</subparagraph><subparagraph id="idF39F2842199447BEAE0940B1A1B0912D"><enum>(B)</enum><text>in the case of a
student pursuing a master's degree on a part-time basis, a scholarship under
this section shall be awarded for a period of not more than 4 years.</text>
</subparagraph></paragraph></subsection><subsection id="idEBDC549CBFAC495286613744F33AD1ED"><enum>(e)</enum><header>Teaching
requirement</header><text>Each eligible student awarded a scholarship under
this section shall enter into an agreement with the Secretary under which the
eligible student agrees—</text>
<paragraph id="idAC2D92AC4F2A4912A36AF9A4951F2EB4"><enum>(1)</enum><text>to teach
elementary school or secondary school science, technology, engineering, or
mathematics for a period of 4 school years following receipt of the master's
degree for which the scholarship was awarded; or</text>
</paragraph><paragraph id="idB9DF93FF6A3F4A8E830B7914C97AF5D5"><enum>(2)</enum><text>to work in
employment that improves education, as determined by the Secretary pursuant to
regulations, for a period of 4 years following receipt of such degree.</text>
</paragraph></subsection><subsection id="idC881F5E32A8443F091EE19D363501E58"><enum>(f)</enum><header>Scholarship
repayment provisions</header><text>A recipient of a scholarship under this
section who is determined by the Secretary to violate the agreement entered
into under subparagraph (e) shall be required to repay a pro rata amount of the
scholarship award received, plus interest, on a schedule and at a rate of
interest to be prescribed by the Secretary pursuant to regulations promulgated
under this section.</text>
</subsection><subsection id="id09F21397E56D417098E939B4C1F4EB74"><enum>(g)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="idF19E8A7E92EC44D7BCC89C8685139EC8"><enum>(1)</enum><header>Eligible
student</header><text>The term <term>eligible student</term> means a student
who—</text>
<subparagraph id="id3FBB102F47F74DA9ABD6448669343EE4"><enum>(A)</enum><text>is a citizen of
the United States;</text>
</subparagraph><subparagraph id="id8C4832A271B242C5A477C4D222E6A933"><enum>(B)</enum><text>is attending an
institution of higher education;</text>
</subparagraph><subparagraph commented="no" id="id64BE48A6D1B24182A229A1B58114F92E"><enum>(C)</enum><text>is or was an
elementary school or secondary school teacher;</text>
</subparagraph><subparagraph id="idF286649EFCFA49719D288762CECCF2DE"><enum>(D)</enum><text>is enrolled, or
will be enrolled at the start of the next academic year, in a course of study
at an institution of higher education that leads to a master's degree in
science, technology, engineering, or mathematics;</text>
</subparagraph><subparagraph id="id8FBB4582C226454EA78B615AAFDA15DA"><enum>(E)</enum><text>demonstrates
aptitude, as determined by the Secretary, in science, technology, engineering,
or mathematics; or</text>
</subparagraph><subparagraph id="id9C89CD3EADC14989B4A41FA847CDE8A9"><enum>(F)</enum><text>for each year of
a scholarship under this section, demonstrates continued academic achievement
and progress, as determined by the Secretary, toward completion of a master's
degree in science, technology, engineering, or mathematics.</text>
</subparagraph></paragraph><paragraph commented="no" id="idEEC1C4ADA03C454BA81F48DE8E8FF246"><enum>(2)</enum><header>Institution of
higher education</header><text>The term <term>institution of higher
education</term> has the meaning given the term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).</text>
</paragraph><paragraph id="idBA82A15A44E54A0CAD32C3F7744DA39C"><enum>(3)</enum><header>Qualified
expenses</header><text>The term <term>qualified expenses</term> means the
tuition, books, fees, supplies, and equipment required for a course of
instruction leading to a master's degree in science, technology, engineering,
or mathematics at an institution of higher education of the eligible student's
choosing.</text>
</paragraph><paragraph id="idB11A525EFD094B6A8085888797FFD36B"><enum>(4)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Education.</text>
</paragraph></subsection><subsection id="id49CE02F185BD4391960AB71245963608"><enum>(h)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section—</text>
<paragraph id="id9E676B4FDD8B4CF797112F9259A80CAC"><enum>(1)</enum><text>$375,000,000 for
fiscal year 2007;</text>
</paragraph><paragraph id="idC35E1BAA63884EFFA5F1437208D9E2C3"><enum>(2)</enum><text>$750,000,000 for
fiscal year 2008;</text>
</paragraph><paragraph id="id2A02A1832AA5427294B04FEEEB2CE8DB"><enum>(3)</enum><text>$1,125,000,000
for fiscal year 2009; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id37BF638E0ECF4A1BBC8BCCE8B5CA1123"><enum>(4)</enum><text>$1,500,000,000
for each of the fiscal years 2010 and 2011.</text>
</paragraph></subsection></section><section commented="no" id="idEB0CBE4F57E545218DD9ED8E33E243E3"><enum>205.</enum><header>Future
Critical Language Teacher Scholarships</header>
<subsection id="id61A862F498534C4799D16C4CCFF87C2F"><enum>(a)</enum><header>Purpose</header><text>The
purpose of this section is to increase the number and percentage of citizens of
the United States who earn baccalaureate degrees in critical languages by
providing 25,000 new competitive merit-based undergraduate scholarships to
students who are citizens of the United States, for the purpose of enabling
each such student to obtain a baccalaureate degree in a critical language at an
institution of higher education.</text>
</subsection><subsection id="id74F0899F18394881BD574A04B2DCB6AC"><enum>(b)</enum><header>Scholarships</header>
<paragraph id="id4C4AF277161B49A389C47E3ADFE092B7"><enum>(1)</enum><header>In
general</header><text>From the amounts authorized under subsection (h), the
Secretary shall award scholarships to eligible students that shall be used by
the eligible students to pay for qualifying expenses at the institution of
higher education of the eligible students' choosing.</text>
</paragraph><paragraph id="id2A24DD68027E47BF90091160CABAA241"><enum>(2)</enum><header>Future critical
language teacher scholarship</header><text>A scholarship awarded under this
section shall be known as a <quote>Future Critical Language Teacher
Scholarship</quote>.</text>
</paragraph><paragraph id="id5F4564F8B45C4BBD91C73B6CEE77D985"><enum>(3)</enum><header>Language
immersion</header><text>The Secretary shall ensure that language immersion is
an integral part of the education for which each scholarship under this section
is awarded.</text>
</paragraph></subsection><subsection id="idAD47512533F44D0DA3697067B9C4004F"><enum>(c)</enum><header>Award
basis</header><text>In awarding scholarships under this section, the Secretary
shall give preference to students who agree to satisfy the teaching requirement
under subsection (e) by teaching in a low- or middle-income school or a rural
school.</text>
</subsection><subsection id="idA1041579C8B44433890F119AAB841D5C"><enum>(d)</enum><header>Amount;
duration</header>
<paragraph id="id222AE4B8886B4FC28117E20FA6D49289"><enum>(1)</enum><header>Amount</header><text>A
scholarship award under this section shall be in an amount of not more than the
average cost of attendance, as such term is defined in section 472 of the
Higher Education Act of 1965 (20 U.S.C. 10877ll), for a student attending a
baccalaureate program in a critical foreign language at an institution of
higher education in the State, as determined by the Secretary, in consultation
with the State.</text>
</paragraph><paragraph id="idE774207C502D495BB3023916D0E52C5F"><enum>(2)</enum><header>Duration of
scholarship</header><text>A scholarship awarded to an eligible student under
this section shall be for the number of years necessary for the eligible
student to earn a baccalaureate degree in a critical language, except
that—</text>
<subparagraph id="idDB5D7D4DD7AA4970A06C79726E6D08C1"><enum>(A)</enum><text>in the case of a
student pursuing a baccalaureate degree on a full-time basis, a scholarship
under this section shall be awarded for a period of not more than 4 years;
and</text>
</subparagraph><subparagraph id="id94AF1A82D10A46A4AA315D50B2FD7902"><enum>(B)</enum><text>in the case of a
student pursuing a baccalaureate degree on a part-time basis, a scholarship
under this section shall be awarded for a period of not more than 6
years.</text>
</subparagraph></paragraph></subsection><subsection id="idBEB531F7B77E4354A35A17B1EF25B8FC"><enum>(e)</enum><header>Teaching
requirement</header><text>Each eligible student awarded a scholarship under
this section shall enter into an agreement with the Secretary under which the
eligible student agrees—</text>
<paragraph id="idBFDC496390A44396ACD01E3B509CB169"><enum>(1)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="idFE3C07A88D0B437AB81685D3D7490EDE"><enum>(A)</enum><text>to teach a critical
language at an elementary school or secondary school for a period of 4 school
years following receipt of the baccalaureate degree for which the scholarship
was awarded; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idA0960664708C4C0AB2328538401CAFA4" indent="up1"><enum>(B)</enum><text>to meet any teacher training
requirements determined necessary by the State in order to carry out
subparagraph (A); or</text>
</subparagraph></paragraph><paragraph id="id270540E21C334FCBB1E1D79E0AF2696F"><enum>(2)</enum><text>to work in
employment that improves education, as determined by the Secretary pursuant to
regulations, for a period of 4 years following receipt of such degree.</text>
</paragraph></subsection><subsection id="id1F6824BAFD8E4DF3B63C860A92A5FE6F"><enum>(f)</enum><header>Scholarship
repayment provisions</header><text>A recipient of a scholarship under this
section who is determined by the Secretary to violate the agreement entered
into under subsection (e) shall be required to repay a pro rata amount of the
scholarship award received, plus interest, on a schedule and at a rate of
interest to be prescribed by the Secretary pursuant to regulations promulgated
under this section.</text>
</subsection><subsection id="id0FCB17911C7047898E70B15DBD33CC20"><enum>(g)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="id2957477CAAF54CAEBFE2FBA8BB6C9B1E"><enum>(1)</enum><header>Critical
language</header><text>The term <term>critical language</term> means Chinese,
Mandarin, Arabic, Hindi, Urdu, Russian, Korean, Farsi, or any other language
that the Secretary of Education determines is a critical language.</text>
</paragraph><paragraph id="id09B9CB2B472B45D69C2CDB46420727CA"><enum>(2)</enum><header>Eligible
student</header><text>The term <term>eligible student</term> means a student
who—</text>
<subparagraph id="id428F845B603C42B8A886960D753B2F0E"><enum>(A)</enum><text>is a citizen of
the United States;</text>
</subparagraph><subparagraph id="id4E76DEB3269A4CAA81500D84ADD60EB5"><enum>(B)</enum><text>is attending an
institution of higher education;</text>
</subparagraph><subparagraph id="idB2F4A3248166453585D050C24B7E1D25"><enum>(C)</enum><text>is enrolled, or
will be enrolled at the start of the next academic year, in a course of study
at an institution of higher education that leads to a baccalaureate degree in a
critical language;</text>
</subparagraph><subparagraph id="id3210AECD8BBC428B9D450769AA0546E4"><enum>(D)</enum><text>demonstrates
aptitude for foreign language, as determined by the Secretary; or</text>
</subparagraph><subparagraph id="idA491058C37514225B628F54795F1A27F"><enum>(E)</enum><text>for each year of
a scholarship under this section, demonstrates continued academic achievement
and progress, as determined by the Secretary, toward completion of a
baccalaureate degree in a critical language.</text>
</subparagraph></paragraph><paragraph commented="no" id="id88C723A90B2345E0AD6FCC3C0450BFB7"><enum>(3)</enum><header>Institution of
higher education</header><text>The term <term>institution of higher
education</term> has the meaning given the term in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)).</text>
</paragraph><paragraph id="idACB77BDD56E04662BEF48DA9384763FB"><enum>(4)</enum><header>Qualified
expenses</header><text>The term <term>qualified expenses</term> means—</text>
<subparagraph id="id4D47286B30344B1DA02383D51EC078AE"><enum>(A)</enum><text>the tuition,
books, fees, supplies, and equipment required for a course of instruction
leading to a baccalaureate degree in a critical language at an institution of
higher education of the eligible student's choosing; and</text>
</subparagraph><subparagraph commented="no" id="id9B75069CFA6E4000B9E7DCEAEF9E9CD7"><enum>(B)</enum><text>in the case of a
student visiting a foreign country as part of a study abroad or other academic
program—</text>
<clause commented="no" id="id7E91FCD2100146DBBF0F41B8E4A1DA58"><enum>(i)</enum><text>the cost of a
visa or other document issued by a foreign country to permit the eligible
student to visit the foreign country; and</text>
</clause><clause commented="no" id="ID5ead1a70aade48dd9a8679ac65e36f86"><enum>(ii)</enum><text>the cost of
medical services recommend by the Secretary of State or the Director of the
Centers for Disease Control and Prevention for an individual traveling to the
foreign country.</text>
</clause></subparagraph></paragraph><paragraph id="id7CDED033D9CB4B9B872294E5DBE2B9B5"><enum>(5)</enum><header>Secretary</header><text>The
term <term>Secretary</term> means the Secretary of Education.</text>
</paragraph></subsection><subsection id="idC52230F36F9A4F86B7573FCB2D67D843"><enum>(h)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section—</text>
<paragraph id="id330805D61BC745A0AE894D0220495EB6"><enum>(1)</enum><text>$375,000,000 for
fiscal year 2007;</text>
</paragraph><paragraph id="idDBED56E98A01417FAEDE93F0CF8AA9A8"><enum>(2)</enum><text>$750,000,000 for
fiscal year 2008;</text>
</paragraph><paragraph id="id824CD242913A40A3A30D1520139686D6"><enum>(3)</enum><text>$1,125,000,000
for fiscal year 2009; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA6FFD5EC4A4A427EA7000E1C11081105"><enum>(4)</enum><text>$1,500,000,000
for each of the fiscal years 2010 and 2011.</text>
</paragraph></subsection></section><section id="idB0B8CD082FAA4C77A7771E257302681C"><enum>206.</enum><header>Assisting
teachers in rural or underserved areas</header>
<subsection id="idC0E2696A15FB416B81D102FCB737DB44"><enum>(a)</enum><header>Grants to
States</header><text>A Secretary of Education is authorized to award grants to
State educational agencies to enable the State educational agencies to carry
out programs to encourage elementary school and secondary school teachers to
teach in rural schools or underserved areas. Such programs may include—</text>
<paragraph id="idC94A795C42D949209624EAE43A4F5A11"><enum>(1)</enum><text>providing cash
incentives to encourage a teacher to teach in a rural school or an underserved
area; and</text>
</paragraph><paragraph id="id9BAA9DA2AE4F40BEBBFABCED6B08AA8A"><enum>(2)</enum><text>loan forgiveness
programs.</text>
</paragraph></subsection><subsection id="idE1F7F45934BC4F8393A816D1C5CE35CE"><enum>(b)</enum><header>Definition of
rural school</header><text>In this section the term <term>rural school</term>
means a school with a school locale code of 7 or 8, or otherwise designated as
a rural school, as determined by the Secretary.</text>
</subsection><subsection id="idC21A08809C96414EAD30591EBFF2A129"><enum>(c)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section $750,000,000 for fiscal year 2007 and each of the 4
succeeding fiscal years.</text>
</subsection></section><section id="id5F24546A1AA3467A96A4D8BAEA123055"><enum>207.</enum><header>Advanced
Placement and International Baccalaureate Programs</header>
<subsection id="ID928bf3079b9649a493a148b9e9750040"><enum>(a)</enum><header>Purpose</header><text>The
purposes of this section are—</text>
<paragraph id="IDed82279a909c410ebd1d6b38ce960f8d"><enum>(1)</enum><text>to educate an
additional 70,000 Advanced Placement (AP) or International Baccalaureate (IB)
and 80,000 pre-AP or pre-IB teachers over the 5-year period beginning with
2007; and</text>
</paragraph><paragraph id="ID0e7ede757c9b4781ac55d9a396436218"><enum>(2)</enum><text>to increase the
number of students who take AP and IB classes.</text>
</paragraph></subsection><subsection id="ID33136653f21b4d7bb1b96cf3e9f94879"><enum>(b)</enum><header>Grants
authorized</header>
<paragraph id="id09365DDEA8274E2EA2DFC3FBDF7B59FE"><enum>(1)</enum><header>In
general</header><text>From the amounts authorized under subsection (h), the
Secretary shall award grants, on a competitive basis, to eligible recipients to
enable the eligible recipients to carry out the activities authorized in
subsection (f).</text>
</paragraph><paragraph id="id6034E086BCAD4D75A1A2A1EBE4412054"><enum>(2)</enum><header>Limitation</header><text>An
eligible recipient may not receive more than 1 grant at a time under this
section to undertake authorized activities within the same State.</text>
</paragraph></subsection><subsection id="ID2e689897bb64498e87ee52033e59a107"><enum>(c)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="IDb3786a1044fe42f3aa0049d7ceb7a179"><enum>(1)</enum><header>Eligible
recipient</header><text>The term <term>eligible recipient</term> means a
nonprofit educational entity with expertise in Advanced Placement or
International Baccalaureate services.</text>
</paragraph><paragraph id="ID08932483172541e98cf8a3192f4e9852"><enum>(2)</enum><header>Master
teacher</header><text>The term <term>master teacher</term> means a
teacher—</text>
<subparagraph id="id4B1D19D6AE3B4AF096650721B2840AFD"><enum>(A)</enum><text>with an advanced
degree or an advanced certification;</text>
</subparagraph><subparagraph id="idE2CBE9737EBE44929D3C36263358E492"><enum>(B)</enum><text>who uses the most
effective teaching methods in the teacher’s disciplines; and</text>
</subparagraph><subparagraph id="idB7E06EEC57CD4BDF989DC6C2E19E2F5E"><enum>(C)</enum><text>who has shown
demonstrable results of higher student achievement.</text>
</subparagraph></paragraph></subsection><subsection id="IDb7e9eba3e77143188a73cdfa4080fd89"><enum>(d)</enum><header>Application</header>
<paragraph id="ID423d5a00be3d41a39cc2d2f6ed278a88"><enum>(1)</enum><header>In
general</header><text>Each eligible recipient desiring a grant under this
section shall submit an application to the Secretary at such time, in such
manner, and accompanied by such information as the Secretary may
require.</text>
</paragraph><paragraph id="ID557ada6ef3224f0fa31383c475f04023"><enum>(2)</enum><header>Contents</header><text>Each
application submitted pursuant to paragraph (1) shall—</text>
<subparagraph id="ID6a296e91d4f54a30a1d6834ff43ff5bf"><enum>(A)</enum><text>describe the need
for increased access to Advanced Placement or International Baccalaureate
programs;</text>
</subparagraph><subparagraph id="ID5f5e30f316f24915b36eb5b50cc76525"><enum>(B)</enum><text>provide for the
involvement of business and community organizations in the activities to be
assisted;</text>
</subparagraph><subparagraph id="IDb97ebfe55efa4dd28782948c23527f91"><enum>(C)</enum><text>describe the
availability of matching funds from non-Federal sources to assist in the
activities authorized; and</text>
</subparagraph><subparagraph id="ID4de9309d957749eab7c2c799a18b27ca"><enum>(D)</enum><text>demonstrate an
intent to carry out activities that target local educational agencies—</text>
<clause id="IDbb4b0913d9df4cba874fcf420d419fa7"><enum>(i)</enum><text>for
which not less than 40 percent of the children served by the local educational
agency are children from low-income families; or</text>
</clause><clause id="IDc3386f21f1dd415b8c96264fea7968f6"><enum>(ii)</enum><text>with a total of
less than 600 students in average daily attendance at the schools that are
served by the local educational agency and all of those schools are designated
with a school locale code of 7 or 8, or otherwise designated as a rural school,
as determined by the Secretary.</text>
</clause></subparagraph></paragraph></subsection><subsection id="IDf0a4e5e10e5a48ca989647255e44e60d"><enum>(e)</enum><header>Priority
consideration</header><text>The Secretary shall give priority to eligible
recipients that submit an application under subsection (d) that demonstrates a
pervasive need to expand or develop Advanced Placement or International
Baccalaureate programs.</text>
</subsection><subsection id="IDe1fd3725413b4e989982cf134b758f6c"><enum>(f)</enum><header>Authorized
activities</header><text>An eligible recipient shall use the grant funds
provided under this section for the following activities:</text>
<paragraph id="ID6d16d85cece2463594ccd40d2893a22e"><enum>(1)</enum><text>To identify and
work with local educational agencies to expand or develop Advanced Placement or
International Baccalaureate and pre-Advanced Placement or pre-International
Baccalaureate programs in schools served by the local educational
agencies.</text>
</paragraph><paragraph id="ID97d7d0b4351a4fcbae8459f24b85dcb1"><enum>(2)</enum><text>To work with the
local educational agencies to establish Advanced Placement or International
Baccalaureate coordinators in each secondary school served by the local
educational agencies.</text>
</paragraph><paragraph id="ID560af7616ec0417fbbe6e3d84843b7cb"><enum>(3)</enum><text>To ensure master
teachers provide training to prepare teachers to teach Advanced Placement or
International Baccalaureate courses, which may include—</text>
<subparagraph id="IDfbee1609a2cd48ef9bc3a66e440ccd69"><enum>(A)</enum><text>week-long summer
institutes; and</text>
</subparagraph><subparagraph id="ID6d1450fe71d14c49a576933db6de3edb"><enum>(B)</enum><text>2-day seminars in
the teachers’ disciplines each year for 4 years.</text>
</subparagraph></paragraph><paragraph id="ID0b172636ac3542e4b0ca1fe9c7b37c38"><enum>(4)</enum><text>To ensure master
teachers provide training to prepare teachers to teach pre-Advanced Placement
or pre-International Baccalaureate courses, which shall include at a
minimum—</text>
<subparagraph id="ID972822d5f41c4e88bd1ab5406d0bb940"><enum>(A)</enum><text>a 4-day summer
institute; and</text>
</subparagraph><subparagraph id="IDc35f17e25a9b447f868a2c8e49a734cb"><enum>(B)</enum><text>4 days on campus
each year for 4 years.</text>
</subparagraph></paragraph><paragraph id="ID9afcafa70178429db01f3d8f1625f1d3"><enum>(5)</enum><text>To provide
stipends to teachers who satisfactorily complete the Advanced Placement or
International Baccalaureate or pre-Advanced Placement or pre-International
Baccalaureate training.</text>
</paragraph><paragraph id="id537DCC6D31654ECBBDC23C7BEAC128CD"><enum>(6)</enum><text>To provide test
preparation sessions for students taking Advanced Placement or International
Baccalaureate classes.</text>
</paragraph><paragraph id="IDf48894df4f7f472286e99020ed35194b"><enum>(7)</enum><text>To waive Advanced
Placement or International Baccalaureate examinations fees for students who
qualify for a free or reduced-price school lunch under the Richard B. Russell
National School Lunch Act (42 U.S.C. 1751 et seq.).</text>
</paragraph></subsection><subsection id="ID2d7800336df34dffb5ea1e8d5c57b0d8"><enum>(g)</enum><header>Evaluation and
accountability plan</header>
<paragraph id="ID0d82d9ec242049d68c9c5d33b8a93977"><enum>(1)</enum><header>In
general</header><text>Each eligible recipient receiving a grant under this
section shall develop an evaluation and accountability plan for activities
assisted under this section that includes rigorous objectives that measure the
impact of activities assisted under this section.</text>
</paragraph><paragraph id="IDb3cf5481fcc643d4954bba9aa17ddc60"><enum>(2)</enum><header>Contents</header><text>The
plan developed pursuant to paragraph (1) shall include—</text>
<subparagraph id="idB47C77E0C878445D9BCEBC55BB47765D"><enum>(A)</enum><text>the number of
students served by the eligible recipient who are taking pre-Advanced Placement
or pre-International Baccalaureate courses;</text>
</subparagraph><subparagraph id="IDf280da00bf6c45d2870e860ff30ef3fc"><enum>(B)</enum><text>the number of
students served by the eligible recipient who are taking Advanced Placement or
International Baccalaureate courses;</text>
</subparagraph><subparagraph id="IDb115b35a9e7e4677983725945f7eb2af"><enum>(C)</enum><text>the number of
students served by the eligible recipient who take Advanced Placement or
International Baccalaureate examinations;</text>
</subparagraph><subparagraph id="ID3eb20788ea0a4b23b10b86c0c1cfa1f8"><enum>(D)</enum><text>the number of
students served by the eligible recipients who pass Advanced Placement or
International Baccalaureate examinations; and</text>
</subparagraph><subparagraph id="IDb35b1b4f00d3426db7808128cf08191f"><enum>(E)</enum><text>the number of
teachers trained in Advanced Placement or International Baccalaureate and
pre-Advanced Placement or pre-International Baccalaureate programs.</text>
</subparagraph></paragraph></subsection><subsection id="IDcbce644a094944329e17e378869888eb"><enum>(h)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section—</text>
<paragraph id="ID0a63de189fb54180968925da34d722ea"><enum>(1)</enum><text>$241,000,000 for
fiscal year 2007;</text>
</paragraph><paragraph id="ID774f56e3000b4443ad453713829654eb"><enum>(2)</enum><text>$341,000,000 for
fiscal year 2008;</text>
</paragraph><paragraph id="ID65730476b975428f958c1884667af62f"><enum>(3)</enum><text>$453,000,000 for
fiscal year 2009;</text>
</paragraph><paragraph id="ID239d37c621a64860a0fb269d2d00cadb"><enum>(4)</enum><text>$596,000,000 for
fiscal year 2010; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDec44a61478fd43dcaf64f6907eb9f0d3"><enum>(5)</enum><text>$731,000,000 for
fiscal year 2011.</text>
</paragraph></subsection></section><enum>III</enum><header>Committing to
Competitiveness Early by Supporting Universal Voluntary
Prekindergarten</header>
<section id="id6707E27CAF2C43A28E1853B2CF5CC26C"><enum>301.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
<paragraph id="IDffb73cb7c8bb492d8828acc0e0f4c8d7"><enum>(1)</enum><text>Early education
has been shown to increase high school graduation rates, reduce grade
repetition, and decrease the need for remedial education.</text>
</paragraph><paragraph id="IDf3b05895b78941af8a684d1b679493c6"><enum>(2)</enum><text>Investment in
quality early education has repeatedly shown high returns for each dollar
invested.</text>
</paragraph><paragraph id="IDaa51ac7cb28b44c9a7ea3a41bff59dfc"><enum>(3)</enum><text>Children who
complete early education are more likely to become responsible adults,
establish stable families, and earn higher wages.</text>
</paragraph></section><section id="id22F2EB4D48DC4ADCAFCCC04251E99923"><enum>302.</enum><header>Universal
voluntary prekindergarten by 2020</header>
<subsection id="id3BC0B557F22C44FCB1227B0BC4D11967"><enum>(a)</enum><header>Purpose</header><text>It
is the purpose of this section to double the number of students participating
in universal voluntary prekindergarten programs during the 5-year period
beginning with 2007, with the intent of providing universal voluntary
prekindergarten to all children by 2020.</text>
</subsection><subsection id="id8B8FF7C799234B989F1AD0625B4350D3"><enum>(b)</enum><header>Grants to
States</header>
<paragraph id="idDCB8C20547CD48DB826406A24744E38E"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary is
authorized to award a grant to a State educational agency to enable the State
educational agency to pay the Federal share of the cost of establishing a
universal voluntary prekindergarten program within the State. The universal
voluntary prekindergarten program shall—</text>
<subparagraph id="id441A37E6512F4337A59A1BE5C5510BFA"><enum>(A)</enum><text>incorporate
benchmarks to evaluate the effectiveness of the program;</text>
</subparagraph><subparagraph id="id0CCC76E57048411085DF796B4270E269"><enum>(B)</enum><text>include
prekindergarten teacher development;</text>
</subparagraph><subparagraph commented="no" id="idAF64EEDBB28245C98D8837FB2F6CBCD9"><enum>(C)</enum><text>address
prekindergarten teacher-to-student ratios or class sizes;</text>
</subparagraph><subparagraph id="id1C74332A61964D268ECC260354A11A98"><enum>(D)</enum><text>provide for a
minimum of 6 hours of instruction per day;</text>
</subparagraph><subparagraph id="idE276DD658B654A549DE20735B548E9BF"><enum>(E)</enum><text>encourage
developmental education rather than just child care;</text>
</subparagraph><subparagraph id="id4501B71BE25C454A98908AB24BFABF65"><enum>(F)</enum><text>provide for
progressive increases regarding the qualifications of prekindergarten teachers;
and</text>
</subparagraph><subparagraph id="idE1FBF8F73EAF458B82AA610814EE59AD"><enum>(G)</enum><text>be aligned with
the standards, curricula, and child expectations for kindergarten and
elementary school.</text>
</subparagraph></paragraph><paragraph id="id0CB862CF2A5F43ABA8CD1D113843EA32"><enum>(2)</enum><header>Matching
funds</header><text>The Federal share shall be 50 percent. The non-Federal
share shall be provided from non-Federal sources.</text>
</paragraph></subsection><subsection id="idEBF1AF2335F14DE086210453BDC1F427"><enum>(c)</enum><header>State
plan</header><text>Each State educational agency desiring a grant under this
section shall submit to the Secretary a State plan for establishing a universal
voluntary prekindergarten program in the State in accordance with this section.
The plan shall—</text>
<paragraph id="H03DD17104B494C21A1F60B7F53E83E9"><enum>(1)</enum><text>demonstrate a need
for the establishment, enhancement, or expansion of a universal voluntary
prekindergarten program;</text>
</paragraph><paragraph id="H0B0FD6F333194A1290213900A6A76466"><enum>(2)</enum><text>describe how the
State educational agency collaborates with local early childhood councils and
agencies;</text>
</paragraph><paragraph id="HB9D5824C4FE74474A20591AB7BF330E7"><enum>(3)</enum><text>provide an
assurance that each individual hired to teach in the universal voluntary
prekindergarten program is qualified to teach children at the prekindergarten
level;</text>
</paragraph><paragraph id="HB8305F6FB1BA4EE4B335C08DBE7B613B"><enum>(4)</enum><text>provide an
assurance that the ratio of teachers or child development specialists to
children in the universal voluntary prekindergarten program shall not exceed 1
to 10;</text>
</paragraph><paragraph id="H19AA6B85591C4ADBA688816C09E06053"><enum>(5)</enum><text>provide a
description of how funds will be used to coordinate with and enhance, but not
duplicate or supplant, early childhood programs serving eligible children that
exist in the State;</text>
</paragraph><paragraph id="H64D1D1AB226C4DFDA6F1A6439B006CDB"><enum>(6)</enum><text>describe how the
universal voluntary prekindergarten program will meet the diverse needs of
children, ages 3 through 5, in the State who are not enrolled in kindergarten,
including children with disabilities or whose native language is other than
English;</text>
</paragraph><paragraph id="H78A6FA625BC541CA8F847440D4000186"><enum>(7)</enum><text>describe how the
State educational agency will collaborate with local schools to ensure a smooth
transition for participating students from early childhood education to
kindergarten and early elementary education;</text>
</paragraph><paragraph id="HE87FE67A929146F19F587C5EB26CE97C"><enum>(8)</enum><text>describe the
results the universal voluntary prekindergarten program is intended to achieve,
and what tools will be used to measure the progress in attaining those results;
and</text>
</paragraph><paragraph id="id2D27C63EC3534EC48C8A00EC81702D48"><enum>(9)</enum><text>describe how the
State educational agency will phase in access to universal voluntary
prekindergarten, beginning with children at risk of academic failure.</text>
</paragraph></subsection><subsection id="id8D33C5E386954D8A81092B373CD4BBAD"><enum>(d)</enum><header>Uses of
Funds</header>
<paragraph id="id96AFBDFD94E34DD489A7EA43D262F257"><enum>(1)</enum><header>In
general</header><text>A State educational agency that receives a grant award
under this part shall use funds received through the grant to pay the Federal
share of the costs of establishing, enhancing, or expanding a universal
voluntary prekindergarten program for children, ages 3 through 5, who are not
enrolled in kindergarten, including—</text>
<subparagraph id="HF82CD25A074B49579C8393D9A9B8EBC"><enum>(A)</enum><text>providing a program
that focuses on—</text>
<clause id="idB4BF68E7B64748DFB6115EFB407F6A21"><enum>(i)</enum><text>the
developmental needs of participating children, including—</text>
<subclause id="idBE834425157B47D08DA21BBAE5B74C70"><enum>(I)</enum><text>language
development;</text>
</subclause><subclause id="id4DB49A7F6B6C4E568AA4BE93A1659D77"><enum>(II)</enum><text>science;</text>
</subclause><subclause id="id0CA793CBFC954FE99853DFECE8DF2EA1"><enum>(III)</enum><text>creative
arts;</text>
</subclause><subclause id="idE40A54D9476942279DF22B442CA8CCD2"><enum>(IV)</enum><text>social and
emotional needs;</text>
</subclause><subclause id="id21E7E2B403144DB5BD8B102F2243CD7E"><enum>(V)</enum><text>children's
approaches to learning; and</text>
</subclause><subclause id="id04322C8965A04733B0D68E3C932268CD"><enum>(VI)</enum><text>physical and
health development; and</text>
</subclause></clause><clause id="id8CF1362069524031A2C18910C7F13652"><enum>(ii)</enum><text>using
research-based approaches that build on competencies that lead to school
success, particularly in language and literacy development in reading and
mathematics;</text>
</clause></subparagraph><subparagraph id="HF3816CA333524F5889BCC4C4B62FCDB2"><enum>(B)</enum><text>paying the costs
of purchasing education material, such as books, necessary to provide a
high-quality program;</text>
</subparagraph><subparagraph id="HF1D14E2C43DB46C19DCA44D300C5FF68"><enum>(C)</enum><text>pursuing
accreditation by a national accreditation body with demonstrated experience in
accreditation of prekindergarten programs, to be obtained not later than 3
years after the date of receipt of funds under this section;</text>
</subparagraph><subparagraph id="H441EF192CB784C31825EFD0321CEDC6"><enum>(D)</enum><text>helping
prekindergarten teachers pursue and attain the credential and degree
requirements established by the State and providing a stipend for attaining
educational or professional development; and</text>
</subparagraph><subparagraph id="HB19088CDA8AC45B08C3405B515684F36"><enum>(E)</enum><text>meeting the needs
of working parents.</text>
</subparagraph></paragraph><paragraph commented="no" id="H30635E51943E4B69B3A95491359F6F75"><enum>(2)</enum><header>Permissible use
of funds</header><text display-inline="yes-display-inline">An agency or
eligible prekindergarten provider that receives a grant award under this part
may use funds received through the grant to pay for transporting students to
and from a universal voluntary prekindergarten program.</text>
</paragraph></subsection><subsection id="idDA03F4CB82654BC5B233FBA09E3F5CFD"><enum>(e)</enum><header>Supplement not
supplant</header><text>Grant funds awarded under this section shall be used to
supplement, not supplant, funds provided under the Head Start Act (42 U.S.C.
9831 et seq.).</text>
</subsection><subsection id="id81DD8CDC8E324B39B8FFCC5F91D754FE"><enum>(f)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section—</text>
<paragraph id="idC578C449F49548AE920DF718B517A0C0"><enum>(1)</enum><text>$1,400,000,000
for fiscal year 2007;</text>
</paragraph><paragraph id="id78C29F9B96A942E4BCF943D3E4A518FC"><enum>(2)</enum><text>$2,800,000,000
for fiscal year 2008;</text>
</paragraph><paragraph id="id25E8C9F5EEC14AE78032A9B681D6E241"><enum>(3)</enum><text>$4,200,000,000
for fiscal year 2009;</text>
</paragraph><paragraph id="idED17DDDF63D84B099CE8A9776C449080"><enum>(4)</enum><text>$5,600,000,000
for fiscal year 2010; and</text>
</paragraph><paragraph id="id1B5B28FAC0D749BCAAABBE482DE1A078"><enum>(5)</enum><text>$7,000,000,000
for fiscal year 2011.</text>
</paragraph></subsection></section><section id="IDb4943c82307c4b528927786f4749f1b6"><enum>303.</enum><header>Prekindergarten
through grade 16 (PK–16) collaboratives</header>
<subsection id="ID5a47d54aac8848fba5d21f0826468780"><enum>(a)</enum><header>Program
authorized</header>
<paragraph id="ID928160c8e9c8491a90f084af8959e0ec"><enum>(1)</enum><header>In
general</header><text>From amounts appropriated under subsection (e), the
Secretary is authorized to award, on a competitive basis, grants to eligible
State educational agencies for the purpose of enabling such agencies to
establish State prekindergarten through grade 16 leadership collaboratives
(referred to in this section as <quote>collaboratives</quote>) that—</text>
<subparagraph id="ID4ca9b20c0f294d1b938363e701d1e023"><enum>(A)</enum><text>convene
stakeholders in prekindergarten through grade 16 (referred to in this section
as <quote>PK–16</quote>) education within the State and create a forum for
identifying and deliberating on educational issues that transcend the exclusive
domain of early childhood education, kindergarten through grade 12 education,
higher education, and workforce development;</text>
</subparagraph><subparagraph id="IDa95584138fb94829ae461f1dda338320"><enum>(B)</enum><text>recommend ways to
align educational curricula, assessments, programs, and experiences for
students from ages 3 to 21;</text>
</subparagraph><subparagraph id="ID6c69f7c2ce4647e99d477d6eb771d8c5"><enum>(C)</enum><text>develop a plan to
expand children’s access to quality, voluntary prekindergarten, beginning with
children most at risk of academic failure, and mandatory kindergarten programs;
and</text>
</subparagraph><subparagraph id="ID956cb2d2b7634633996581a53da8cb8e"><enum>(D)</enum><text>design and
implement integrated PK–16 data systems that will allow the State to track the
progress of individual students from prekindergarten through grade 12 and into
higher education and the workforce.</text>
</subparagraph></paragraph><paragraph id="ID3c8651c1b2ce44ffbb946deec20c5a7a"><enum>(2)</enum><header>Duration</header><text>The
Secretary shall award grants under this section for a period of not more than 5
years.</text>
</paragraph></subsection><subsection id="ID942ce2047df5480d9c083e00d2a21884"><enum>(b)</enum><header>Definitions</header><text>In
this section—</text>
<paragraph id="ID03f4ebd9fdf9401a9bd75a2ead66f4d6"><enum>(1)</enum><header>Eligible State
educational agency</header><text>The term <term>eligible State educational
agency</term> means a State educational agency that provides assurances to the
Secretary that the agency will use grant funds under this section to form a
collaborative that includes as members not less than 1 representative from each
of the following:</text>
<subparagraph id="IDcd965657dc4f47c7ae6352524d7bc597"><enum>(A)</enum><text>The Governor of
the State, who shall play a leading role in the collaborative.</text>
</subparagraph><subparagraph id="ID564aac0035744896962390dcdba7714b"><enum>(B)</enum><text>The chief
executive officer of the State public institution of higher education system or
the executive officer of the State higher education coordinating board.</text>
</subparagraph><subparagraph id="IDd1779ace0be740acbf1264d4e08bfe08"><enum>(C)</enum><text>The chief State
educational agency school officer, such as the State kindergarten through grade
12 superintendent.</text>
</subparagraph><subparagraph id="ID1b146b38582446bea0524f1ffc619cd0"><enum>(D)</enum><text>A representative
of relevant external stakeholder groups, including civil rights, business,
civic, teacher, parent, school administrator, and child advocacy
organizations.</text>
</subparagraph><subparagraph id="ID7970662d18514297b629a65bd4e2648e"><enum>(E)</enum><text>The State
official responsible for economic development, if such a position
exists.</text>
</subparagraph></paragraph><paragraph id="ID8ae70c8c3a0740249c50498933d1660d"><enum>(2)</enum><header>College
preparatory curriculum</header><text>The term <term>college preparatory
curriculum</term> means a rigorous core of course requirements intended to
prepare secondary students for high level employment and higher education and
shall include 4 years of English, 3 years of mathematics (including algebra I,
algebra II, and geometry), and 3 years of laboratory science (such as biology,
physics, and chemistry).</text>
</paragraph></subsection><subsection id="ID24a03666e01347ad9ec6d471cc78330e"><enum>(c)</enum><header>Application</header>
<paragraph id="IDb56569391df34d53911351b91c58daab"><enum>(1)</enum><header>In
general</header><text>Each eligible State educational agency desiring a grant
under this section shall submit an application to the Secretary at such time,
in such manner, and accompanied by such information as the Secretary may
reasonably require.</text>
</paragraph><paragraph id="IDa4219e583b7b4b229b9ba26b2cf9860e"><enum>(2)</enum><header>Contents</header><text>Each
application submitted under paragraph (1) shall—</text>
<subparagraph id="IDa667e63cbc064d9b91f3fb57483973b3"><enum>(A)</enum><text>be informed by
the opinions of the larger education and business community, including parents,
students, school superintendents, teachers, administrators, and business
leaders, in the development of the curriculum and skills students should know
and be able to perform; and</text>
</subparagraph><subparagraph id="id17D50CC7713443039C9EDD99D92CEC27"><enum>(B)</enum><text>include an
assurance that the collaborative will develop a plan to leverage additional
State, local, and other funds to support—</text>
<clause id="ID7dee186f453d4afc96631146de6406b8"><enum>(i)</enum><text>expansion of
access to voluntary, quality prekindergarten programs;</text>
</clause><clause id="IDb981821956d741619d0cab4b89fba6e4"><enum>(ii)</enum><text>phased-in
implementation of a mandatory full-day kindergarten policy; and</text>
</clause><clause id="IDad94a3b7dd9a4558bdb89a43e211e090"><enum>(iii)</enum><text>alignment of
curricula, assessments, and programs for PK–16 children.</text>
</clause></subparagraph></paragraph></subsection><subsection id="ID62e52d26bfda4386bfc6e305a488ff1f"><enum>(d)</enum><header>Use of
funds</header>
<paragraph id="ID8ae73e3d2fb24486a8b4e3d97ba87f6f"><enum>(1)</enum><header>Required
activities</header><text>An eligible State educational agency receiving a grant
under this section shall use grant funds provided under subsection (e) to carry
out all of the following activities:</text>
<subparagraph id="IDf32b046aab7c4c1496f0b350b3fe755e"><enum>(A)</enum><text>Establish a
collaborative and a time line for accomplishing all activities that will be
carried out with grant funds this section.</text>
</subparagraph><subparagraph id="ID1111f83090f54d9f85c0c5d658b09b21"><enum>(B)</enum><text>Analyze the
State’s level of PK–16 access, quality, and program alignment.</text>
</subparagraph><subparagraph id="IDf623e1bd5e514de79bb64cab5f7f1fb6"><enum>(C)</enum><text>Develop a plan,
where appropriate, for the State to expand access to—</text>
<clause id="IDf244195f9444495ebe7da404144967f8"><enum>(i)</enum><text>voluntary,
quality public and private prekindergarten programs for all children ages 3 and
4; and</text>
</clause><clause id="ID2838e11a669b47dea06c6d8f95253348"><enum>(ii)</enum><text>mandatory
full-day kindergarten programs for all 5 year olds.</text>
</clause></subparagraph><subparagraph id="ID4a5a5730137b41b7a053baef06a10e93"><enum>(D)</enum><text>Analyze the
State’s level of success in preparing students for higher education and the
21st century labor market by using the data produced by the system described in
subparagraph (E), and other information as appropriate.</text>
</subparagraph><subparagraph id="ID5d3c63fb65a24e72a0e42c1dc8794e8f"><enum>(E)</enum><text>Design and
implement an integrated PK–16 data system that will allow the State to
ascertain the progress of students from prekindergarten through grade 12 and
into higher education and the workforce. The data system shall—</text>
<clause id="ID94f4a04671dc466892233b45c1dd8ea3"><enum>(i)</enum><text>include—</text>
<subclause id="idB61C05D79D00429DACBD9988E4A56CB9"><enum>(I)</enum><text>prekindergarten
student enrollment data;</text>
</subclause><subclause id="id410410A5869B43C8970F8A3730ABD42A"><enum>(II)</enum><text>student-level
assessment scores;</text>
</subclause><subclause id="id8D09A8CB82084B42A15BF85F1195C3C4"><enum>(III)</enum><text>the type of
curriculum in which a student is enrolled;</text>
</subclause><subclause id="id34D3564F6A64470AAB3A997794B69796"><enum>(IV)</enum><text>secondary school
course enrollment data including data on the number of students enrolling in
Advanced Placement (AP) and International Baccalaureate (IB) courses;</text>
</subclause><subclause id="id6FC045B2FCEC481EBEAF50A2A034EC83"><enum>(V)</enum><text>student
persistence and graduation rates in secondary education; and</text>
</subclause><subclause id="id02A4DF0E818841208CDBE20EE7741BA1"><enum>(VI)</enum><text>the rates of
student attendance at institutions of higher education; and the types of higher
education programs pursued by students; and</text>
</subclause></clause><clause id="IDa9dddf2a73f342faaf8ee01be93e918d"><enum>(ii)</enum><text>allow the
eligible State educational agency to analyze correlations between—</text>
<subclause commented="no" id="id905A79AEBCDB44CD8CD1634EF4B52E4C"><enum>(I)</enum><text>enrollment,
including enrollment in a school or local educational agency identified for
improvement under subsection (a) or subsection (c), respectively, of section
1116 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6316);
and</text>
</subclause><subclause id="id55289A80FC9248568530C87EF1D4A235"><enum>(II)</enum><text>course-taking
patterns in prekindergarten through grade 12 and outcomes in subsequent grades
and beyond, including—</text>
<item id="IDbf9eb8a68b484c1a8746e814f7dc4997"><enum>(aa)</enum><text>the
need for remedial work in subsequent grades;</text>
</item><item id="ID117e8593dc6a41e8abf9763269962683"><enum>(bb)</enum><text>the
need for remedial work during the summer;</text>
</item><item id="ID4f301108f61c4da1a71356e3d8f2ef81"><enum>(cc)</enum><text>academic
suspension or expulsion;</text>
</item><item id="ID6628734a0455419fb27faa5a0f37a8f2"><enum>(dd)</enum><text>high
school graduation;</text>
</item><item id="ID0ccde78c292a4e9ea18bfa1193f3808f"><enum>(ee)</enum><text>entry into
higher education;</text>
</item><item id="IDeffff81af4334679a43abbbf4f2aab1f"><enum>(ff)</enum><text>the
need for remediation coursework in higher education;</text>
</item><item id="ID6d76b5579ccb430194ae0c82cdf5f9e3"><enum>(gg)</enum><text>persistence in
higher education;</text>
</item><item id="IDd1b0acd55fd04638bb086e62161fc1b1"><enum>(hh)</enum><text>graduation from
higher education; and</text>
</item><item id="ID2a0bd25fd60842b0a8932ae31500ca4c"><enum>(ii)</enum><text>entry into and
retention in the workplace.</text>
</item></subclause></clause></subparagraph><subparagraph id="ID4c4a50bfe9bb41489db0afc39d09ccb7"><enum>(F)</enum><text>Supplement the
salaries of prekindergarten teachers.</text>
</subparagraph><subparagraph id="ID8e4cfa56665f42be92570b77f4fb5466"><enum>(G)</enum><text>Create
opportunities for ongoing, in-service professional development for teachers
within and across grade levels.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDa730b8b715a1449cbc82fcfac10cd88f"><enum>(H)</enum><text>Support the
provision of comprehensive health and social services to children in
prekindergarten who are at risk of academic failure.</text>
</subparagraph><subparagraph id="ID602ed9cb1ad547019c604ab763ff80f4"><enum>(I)</enum><text>Ensure that any
available data does not allow for individual student identification, and that
all data collection shall be in accordance with section 444 of the General
Education Provisions Act (20 U.S.C. 1232g; commonly referred to as the Family
Educational Rights and Privacy Act of 1974).</text>
</subparagraph><subparagraph id="ID67ec5513b4224d49b536634544897c35"><enum>(J)</enum><text>Examine the
desirability of an agreement between the eligible State educational agency and
the higher education system in the State on a common assessment or assessments
that—</text>
<clause id="ID2fb15b81b236447ead4d9ef3136a5f22"><enum>(i)</enum><text>shall follow
established guidelines to guarantee reliability and validity;</text>
</clause><clause id="ID37dab3a1f7034b7cad96c9322490f226"><enum>(ii)</enum><text>shall provide
adequate accommodations for students who are limited English proficient and
students with disabilities; and</text>
</clause><clause id="ID18c7656f93a24db7a3d04aec24956af8"><enum>(iii)</enum><text>may also serve
as a placement examination, exit examination, or end of course examination that
measures secondary students’ preparedness to succeed in postsecondary,
credit-bearing courses.</text>
</clause></subparagraph></paragraph><paragraph id="ID6a33fb80c0364690849b21d10aece789"><enum>(2)</enum><header>Permissible
activities</header><text>An eligible State educational agency receiving a grant
under this section may use grant funds provided under subsection (e) to develop
multiple forms of assessment that provide information on whether children are
progressing toward academic and social expectations set out for them in
prekindergarten through grade 3.</text>
</paragraph><paragraph id="ID8a5a6f79b9d04c61aa792799c4d81b08"><enum>(3)</enum><header>Planning and
implementation</header><text>An eligible State educational agency receiving a
grant under this section may use grant funds received for the first fiscal year
to form the collaborative and plan the activities described in paragraphs (1)
and (2). Grant funds received for subsequent fiscal years shall be used for the
implementation of the activities described in paragraphs (1) and (2).</text>
</paragraph><paragraph id="IDf6909207c6734ee68cde27692c645ae0"><enum>(4)</enum><header>Reports</header><text>An
eligible State educational agency receiving a grant under this section shall
submit a biennial report to the Secretary on—</text>
<subparagraph id="IDafa0777d59d34cf8b921798ab256a6aa"><enum>(A)</enum><text>the extent of
alignment and articulation across the State’s systems of public education for
prekindergarten through grade 16;</text>
</subparagraph><subparagraph id="IDdb9e7a5efa824eb28d8ccc6eebaded3f"><enum>(B)</enum><text>the strengths and
weaknesses of the State in transitioning students from the prekindergarten
through grade 12 education system into higher education and the labor
market;</text>
</subparagraph><subparagraph id="IDf64f5c4e6bd6421bbd7b05b4f74dbb42"><enum>(C)</enum><text>the quality and
rigor of the State’s college preparatory curriculum, including recommendations
to the State regarding the substance of the curriculum as well as the
accessibility of the curriculum to all students in prekindergarten through
grade 12; and</text>
</subparagraph><subparagraph id="ID4437d9d391f1448ebdfcd0eda5538bce"><enum>(D)</enum><text>the strengths and
weaknesses of the State in recruiting, retaining, and supporting qualified
teachers, including whether the State needs to recruit additional teachers at
the secondary level for specific subjects, or particular schools or local
educational agencies, and recommendations for setting and achieving goals in
this pursuit.</text>
</subparagraph></paragraph><paragraph id="ID017797b08f3045caaf7a670d0eb84301"><enum>(5)</enum><header>Publication</header><text>An
eligible State educational agency submitting a report in accordance with
paragraph (1) shall publish and widely disseminate the report to the
public.</text>
</paragraph></subsection><subsection id="ID5f674e4fa3e2481689a7abfc80af5d81"><enum>(e)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section $400,000,000 for fiscal year 2007, and such sums as may
be necessary for each succeeding fiscal year.</text>
</subsection></section><section id="idE6E63D34357A475EB4654CFC5FF1C0F3"><enum>304.</enum><header>Advancing
early childhood education teacher qualifications</header>
<subsection id="id05F817CA134B49AB895FAA87F37241F5"><enum>(a)</enum><header>In
general</header><text>Each State receiving federal education funds shall ensure
that, not later 5 years after the date of enactment of this Act, each early
childhood education teacher hired after such date in the State has a bachelor's
degree in early childhood education.</text>
</subsection><subsection id="id9025AE1F3CE44937BDD85F5516059264"><enum>(b)</enum><header>State
plan</header><text>Each State that receives Federal education funds shall
submit to the Secretary of Education a plan for raising the qualifications of
early childhood education teachers in the State who do not have a bachelor's
degree.</text>
</subsection></section><enum>IV</enum><header>Encouraging
enrichment activities by supporting middle schools and secondary
schools</header>
<section id="id9D2C0F1420D542D09930C51F123DD75A"><enum>401.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
<paragraph id="IDc08c41aa45d24f6abde7e24ed26779c2"><enum>(1)</enum><text>On school days,
the hours between 3:00 pm and 6:00 pm are the peak hours for juvenile crime and
experimentation with drugs, alcohol, cigarettes, and sexual activity.</text>
</paragraph><paragraph id="IDd50420751fd54f55b844b296b0aa5d42"><enum>(2)</enum><text>Only 6,500,000
children in kindergarten through grade 12 (11 percent of the school-age
population) spend time in afterschool programs.</text>
</paragraph><paragraph id="ID579219e2a84c4e32a85a8fc83ab081b2"><enum>(3)</enum><text>Teens who do not
participate in afterschool programs are nearly 3 times more likely to skip
classes than teens who do participate. Teens who do not participate in
afterschool programs are also 3 times more likely to use marijuana or other
drugs, and are more likely to drink alcohol, smoke cigarettes, and engage in
sexual activity.</text>
</paragraph></section><section id="id233C592B7C41498CB16B64578609F93A"><enum>402.</enum><header>Advancing
knowledge with internships and summer programs</header>
<subsection id="idF9C67CE6D9544139B015E049D8D844B7"><enum>(a)</enum><header>Grants
authorized</header><text>The Secretary of Education is authorized to award
grants to State educational agencies to enable the State educational agencies
to award grants to local educational agencies for internships and summer
programs for middle and secondary school students.</text>
</subsection><subsection id="idB44A3D9B6E764450A8DF0BC24B1F9C96"><enum>(b)</enum><header>Local
educational agency use of funds</header><text>Each local educational agency
receiving a grant under this section shall use the grant funds to provide
subgrants to public elementary schools, public secondary schools, or nonprofit
organizations to enable the schools and organizations to carry out internships
and summer programs for middle school and secondary school students.</text>
</subsection><subsection id="id0906AF507E0A443D9E742E601C91BFD4"><enum>(c)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section $200,000,000 for fiscal year 2007, $400,000,000 for
fiscal year 2008, and $600,000,000 for each of the fiscal years 2009 through
2011.</text>
</subsection></section><section id="id21E84368F183484D81A401B5A80DB097"><enum>403.</enum><header>Insight,
Partnership, and Initiative Grants</header>
<subsection id="id3F2F1A404A7340DFB0584D839733A59B"><enum>(a)</enum><header>Grants to
States</header><text>The Secretary is authorized to award grants to State
educational agencies to enable the State educational agencies to carry out
mentoring, afterschool, and enrichment programs, which may include college
preparation programs, arts education, crime or drug abuse prevention programs
(including methamphetamine abuse prevention), or vocational training.</text>
</subsection><subsection id="idDBBC256FA1EF4692BC7A945ABFCA140A"><enum>(b)</enum><header>Insight,
Partnership, and Initiative Grants</header><text>A grant awarded under this
section shall be known as an <quote>Insight, Partnership, and Initiative
Grant</quote> or an <quote>IPI Grant</quote>.</text>
</subsection><subsection id="id6286AF775F6148F38D9CFAE0D5CA14E4"><enum>(c)</enum><header>Supplement not
supplant</header><text>Funds made available under this section shall be used to
supplement, and not supplant, other Federal, State, or local funds that would
otherwise be expended to carry out the activities described in this
section.</text>
</subsection><subsection id="idF3FAE6629DCD4E77B0F7559038DF90E6"><enum>(d)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section $200,000,000 for fiscal year 2007, $400,000,000 for
fiscal year 2008, and $600,000,000 for each of the fiscal years 2009 through
2011.</text>
</subsection></section><enum>V</enum><header>Committing to
education for a competitive economy</header>
<section id="id5093EFC3349A45DF9BFBF19E476F224B"><enum>501.</enum><header>Findings</header><text display-inline="no-display-inline">Congress makes the following
findings:</text>
<paragraph id="id4390A388F4E54FC3BD0E10D5C7E90D9B"><enum>(1)</enum><text>The youth of the
United States must be qualified for the jobs of the 21st century.</text>
</paragraph><paragraph id="ID9a46b2c3f223461eba4c390621c2a4d5"><enum>(2)</enum><text>The Bureau of
Labor Statistics predicts a significantly rising number of American jobs
requiring technically trained workers.</text>
</paragraph><paragraph id="idE7E1B1F2D37A4F9C877FFFA0B1E73DA1"><enum>(3)</enum><text>United States
secondary schools have consistently fared poorly on international science and
mathematics tests, compared with their counterparts in other developed
countries.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id46BBE6FF5F1144039BB481CCF90E7B77"><enum>502.</enum><header>Summer science
and engineering institutes</header>
<subsection commented="no" display-inline="no-display-inline" id="id4A66D4983EDC4E02BC0998E8ED1CBE31"><enum>(a)</enum><header>Grants
authorized</header><text>The Secretary of Education is authorized to award
grants to State educational agencies to enable the State educational agencies
to award grants to elementary schools and secondary schools to enable the
elementary schools and secondary schools to carry out a summer science and
engineering institute for secondary school students.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id86D70F964261423A9CE0D7A2DD6393B8"><enum>(b)</enum><header>Partnership
agreement</header><text>In order for an elementary school or secondary school
to be eligible to receive a grant under this section the school shall enter
into a partnership agreement with a private sector research or educational
entity for the purpose of carrying out the summer science and engineering
institute assisted under this section.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idA1C1E8B4818A4E05B3D22BFD5A77BE91"><enum>(c)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section $800,000,000 for fiscal year 2007 and such sums as may
be necessary for each of the 4 succeeding fiscal years.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id44D37738BF1E44C4BD600C841B79F9B6"><enum>503.</enum><header>Specialty
science and mathematics secondary schools</header>
<subsection commented="no" display-inline="no-display-inline" id="id02364AD654B3409783DFF9D391C1D751"><enum>(a)</enum><header>Grants
authorized</header><text>The Secretary of Education is authorized to award
grants to local educational agencies to enable the local educational agencies
to pay the Federal share of the cost of establishing and operating specialty
science and mathematics secondary schools.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id47371C3EE16A4686889D14CE75574B99"><enum>(b)</enum><header>Definition of
specialty science and mathematics secondary school</header><text>The term
<term>specialty science and mathematics secondary school</term> means a
secondary school that—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id280898AF70834D54B7C0E341FDD9B5CB"><enum>(1)</enum><text>specializes in
science and mathematics;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id76D7D9F7D0DC460297771F25EE107E45"><enum>(2)</enum><text>provides not less
than 6 periods per day devoted to academic coursework with a focus on science
and mathematics instruction; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBA748676A7EE4F30ABD02F9670D1742E"><enum>(3)</enum><text>admits students
on a competitive basis and on the basis of merit.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id5619D132813849A095DD4887C335CAFF"><enum>(c)</enum><header>Federal Share;
non-Federal share</header><text>The Federal share shall be 50 percent. The
non-Federal share shall be provided from non-Federal sources.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idD17A0DBAE75F47B3B57AAF1D071C431B"><enum>(d)</enum><header>Authorization
of appropriations</header><text>There is authorized to be appropriated to carry
out this section $500,000,000 for the period of fiscal years 2007 through
2011.</text>
</subsection></section><section id="id6DDD842ECD744F9CAEED14ED7196D903"><enum>504.</enum><header>Science,
technology, engineering, and mathematics for tomorrow program
established</header>
<subsection id="id24AD17EA3C1C44FA916DEBE9DFC8EACD"><enum>(a)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="id65BABFCC112E4DCE8DB0FFBC54942E47"><enum>(1)</enum><header>Costs of
attendance</header><text>The term <term>cost of attendance</term> has the
meaning given the term in section 472 of the Higher Education Act of 1965 (20
U.S.C. 1087ll).</text>
</paragraph><paragraph id="id5ABB158E21504FD68B8564EA70209E7D"><enum>(2)</enum><header>Eligible
student</header><text>The term <term>eligible student</term> means a student
who—</text>
<subparagraph id="id45A4E36205C54D44AE09C93071AA9F70"><enum>(A)</enum><text>is a citizen of
the United States;</text>
</subparagraph><subparagraph id="idFCBA601C18064F0B9910224E59280618"><enum>(B)</enum><text>is enrolled
full-time—</text>
<clause id="idC916C1F497FB48CEB776DF05CC2F1101"><enum>(i)</enum><text>in
a program of study leading to a baccalaureate degree in science, technology,
engineering, or mathematics at an institution of higher education; or</text>
</clause><clause id="idBBF62BE2D0F44217B766B126DE2859AF"><enum>(ii)</enum><text>in
the first or second year of a program of study leading to a baccalaureate
degree at an institution of higher education and certifies the student's intent
to pursue a baccalaureate degree in science, technology, engineering, or
mathematics; and</text>
</clause></subparagraph><subparagraph id="id13ACB84C6EEB4D328DBFC11FBD651F17"><enum>(C)</enum><text>maintains an
acceptable level of academic standing at the institution of higher
education.</text>
</subparagraph></paragraph><paragraph id="idC9BB9BA8D5A1438CB9DF51AD76EC292F"><enum>(3)</enum><header>Institution of
higher education</header><text>The term <term>institution of higher
education</term> shall have the meaning given the term in section 101(a) of the
Higher Education Act of 1965 (20 U.S.C. 1001(a)).</text>
</paragraph></subsection><subsection id="id8BA63609315B4780866C11A74E8D2CF3"><enum>(b)</enum><header>Payments
required</header><text>For each academic year, the Secretary shall pay to each
eligible student such sums as may be necessary to pay the costs of attendance
for such student to enroll full-time in a program of study leading to a
baccalaureate degree in science, technology, engineering, or mathematics at the
institution of higher education of the eligible student's choice for the
academic year.</text>
</subsection><subsection id="id2265D109DBF64550B1711C696F481762"><enum>(c)</enum><header>Work
requirement</header><text>In order to receive a payment subsection (b), each
eligible student shall enter into an agreement with the Secretary under which
the eligible student agrees to work in a field related to the student's program
of study for a period of 4 school years following receipt of the baccalaureate
degree for which the scholarship was awarded.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idB51D2123F5204727BECA6753DAF6FFA5"><enum>(d)</enum><header>Repayment
provisions</header><text>A recipient of a payment under this section who is
determined by the Secretary to violate the agreement entered into under
subparagraph (c) shall be required to repay a pro rata amount of the payment
received, plus interest, on a schedule and at a rate of interest to be
prescribed by the Secretary pursuant to regulations promulgated under this
section.</text>
</subsection><subsection id="idA66E4FC5963649C9A6F484A46376BF39"><enum>(e)</enum><header>Regulations</header><text>The
Secretary shall promulgate regulations under this section as necessary or
appropriate to carry out this section, including regulations regarding the
acceptable level of academic standing described in subsection (a)(2)(C).</text>
</subsection></section><section id="id11B79AB392244319947A88728B702E6C"><enum>505.</enum><header>Federal Pell
Grants</header><text display-inline="no-display-inline">Section 401(b)(2)(A) of
the Higher Education Act of 1965 (20 U.S.C. 1070a(b)(2)(A)) is amended to read
as follows:</text>
<quoted-block display-inline="no-display-inline" id="id6AB4F4887DE74787BBDFC171433B43CF" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="IDB6C9971A72E64B03B1516A6BC430207E" indent="up1"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="IDD388BFC185344513A279D3C05511D328"><enum>(A)</enum><text>The amount of the
Federal Pell Grant for a student eligible under this part shall be $6,000 for
each of the academic years 2007–2008 through 2013–2014, less an amount equal to
the amount determined to be the expected family contribution with respect to
that student for that
year.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idFFF8E8ADB99C44BDB8E956EFCD51DEC2"><enum>506.</enum><header>Research
grants for early career scientists</header>
<subsection id="idF6D4798DEE7B427899120FA9F95ED14D"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">The Secretary of
Education is authorized to award 600 grants to individual scientists who are
less than 40 years old in order to continue and expand the research conducted
by the scientists and to support the scientists in the early stages of their
careers.</text>
</subsection><subsection id="id116D9078CD7D4FE5804D9FE1D1957E92"><enum>(b)</enum><header>Amount and
duration of grants</header><text display-inline="yes-display-inline">A grant
awarded under this section shall be in the amount of $32,000 and shall be
distributed to the recipient in installments over a 2-year period.</text>
</subsection><subsection id="idD9BAA1B692954786BEAD7C0A4F3A3BE2"><enum>(c)</enum><header>Preference</header><text>In
awarding grants under subsection (a), the Secretary shall give a preference to
scientists who are representatives of populations underrepresented in the
scientific fields.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id421980D801AD4AD49D3ACD516F2FC982"><enum>(d)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated to
carry out this section, $19,200,000 for the period of fiscal years 2007 through
2011.</text>
</subsection></section><enum>VI</enum><header>Restoring our
commitment to Indian education</header>
<section id="id9AF5CDDE5C2A4244B39B12FEA2B57614"><enum>601.</enum><header>Findings</header><text display-inline="no-display-inline">Congress makes the following
findings:</text>
<paragraph id="ID883b65db7c2e4bdcb4b0f5f3a2891f5a"><enum>(1)</enum><text>Indian education
in the United States is chronically and systemically under-funded.</text>
</paragraph><paragraph id="IDfdc043371a5a4e45a193950ced70036f"><enum>(2)</enum><text>Globally
competitive tribally controlled colleges and universities are critical to the
advancement of Native Americans in the United States.</text>
</paragraph><paragraph id="IDb6769a5c78864c8793e9455ec1ca2e6d"><enum>(3)</enum><text>Native language
and culture education is a critical component of Indian school
curricula.</text>
</paragraph></section><section id="id2E49600FA3E549379613C2E62D4EF8B0"><enum>602.</enum><header>Johnson-O'Malley
grants</header><text display-inline="no-display-inline">There are authorized to
be appropriated, and there are appropriated, out of any money in the Treasury
not otherwise appropriated, to carry out section 1 of the Act of April 16, 1934
(48 Stat. 596, Chapter 147; 25 U.S.C. 452) (commonly known as the
Johnson-O'Malley Act) the following amounts:</text>
<paragraph id="idE15A309383A64A16BEE5373043A9889C"><enum>(1)</enum><text>$24,000,000 for
fiscal year 2007.</text>
</paragraph><paragraph id="idAC2992A315AC4D29AD3EE2A1FD29D0AE"><enum>(2)</enum><text>$26,000,000 for
fiscal year 2008.</text>
</paragraph><paragraph id="id8E104BAF30114B0BBFF03DA138D2EA8B"><enum>(3)</enum><text>$28,000,000 for
fiscal year 2009.</text>
</paragraph><paragraph id="id2AADA1A3DCD44764A46B2E478544DCF2"><enum>(4)</enum><text>$30,000,000 for
fiscal year 2010.</text>
</paragraph><paragraph id="id115303582523422DB3FCC3806AE3BA8C"><enum>(5)</enum><text>$33,000,000 for
fiscal year 2011.</text>
</paragraph></section><section id="id117454D961024FB884210CD8D55E7FD7"><enum>603.</enum><header>Appropriations
for Indian higher education</header>
<subsection id="id45CAAA55833A4B959D3872F12222773F"><enum>(a)</enum><header>Tribally
Controlled College or University Assistance Act of 1978</header><text display-inline="yes-display-inline">The Tribally Controlled College or
University Assistance Act of 1978 (25 U.S.C. 1801 et seq.) is amended—</text>
<paragraph id="idC118CDDDA10D4D82A7F004873806E713"><enum>(1)</enum><text>in section
108(a)(2) (25 U.S.C. 1808(a)(2)), by striking <quote>$6,000</quote> and
inserting <quote>$7,000</quote>; and</text>
</paragraph><paragraph id="id507D2AB959CF4D1C87A55CD7EF4EC14A"><enum>(2)</enum><text>in section 110(a)
(25 U.S.C. 1810(a)), by striking paragraph (2) and inserting the
following:</text>
<quoted-block act-name="" display-inline="no-display-inline" id="id9CFBDA9F07964918B71181C4BFE14A9E" style="OLC">
<paragraph id="id2BA27743AFCF4AD99C85E66657068D73" indent="up1"><enum>(2)</enum><text>There is authorized to be
appropriated, and there is appropriated, out of any money in the Treasury not
otherwise appropriated, to carry out section 107 the following amounts:</text>
<subparagraph id="id1DE19A69EE6F493EAA664DCBAE3A5D20"><enum>(A)</enum><text>$65,000,000 for fiscal year
2007.</text>
</subparagraph><subparagraph id="id4083BF504D104310804FBB8C97F1311B"><enum>(B)</enum><text>$71,000,000 for fiscal year
2008.</text>
</subparagraph><subparagraph id="idB741A0DCFA3042C599223771D3CDE133"><enum>(C)</enum><text>$78,000,000 for fiscal year
2009.</text>
</subparagraph><subparagraph id="idB1FDD8D1713644ACADC176C3A52ABB8D"><enum>(D)</enum><text>$85,000,000 for fiscal year
2010.</text>
</subparagraph><subparagraph id="id2747487940DB42E28C51861D09CEF130"><enum>(E)</enum><text>$93,000,000 for fiscal year
2011.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id0B04F9AF4CE549C48BE77346ECFE8B46"><enum>(b)</enum><header>Navajo
Community College Act</header><text display-inline="yes-display-inline">The
matter preceding subparagraph (A) of section 5(b)(1) of the Navajo Community
College Act (25 U.S.C. 640c–1(b)(1) et seq.) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id88A66A52DBF044B39A0EA7DD3D4EBFDB" style="OLC">
<paragraph id="id6390771CE64542C681903007F154CDE8"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="id93537715865146D5AE9CF6BEEE58934F"><enum>(A)</enum><text>There are authorized to
be appropriated, and there are appropriated, out of any money in the Treasury
not otherwise appropriated, for grants to the Navajo Community College
$17,700,000 for fiscal year 2007, $19,500,000 for fiscal year 2008, $21,500,000
for fiscal year 2009, $23,700,000 for fiscal year 2010, and $26,100,000 for
fiscal year 2011, to pay expenses incurred
for—</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section id="id8395C8E0E291432DB5BC1AD6CDFAC1A8"><enum>604.</enum><header>Language
immersion programs</header><text display-inline="no-display-inline">Subsection
(e) of section 816 of the Native American Programs Act of 1974 (42 U.S.C.
2992d) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id6105A6DB848549DBBE32610A0214638F" style="OLC">
<subsection id="id1B77A940E862425D93A34B0BFBA5FDC7"><enum>(e)</enum><paragraph commented="no" display-inline="yes-display-inline" id="idA4F53CC46FD3410291476D8E4CFB06E3"><enum>(1)</enum><text display-inline="yes-display-inline">There are authorized to be appropriated,
and there are appropriated, out of any money in the Treasury not otherwise
appropriated, to carry out section 803C—</text>
<subparagraph id="id010BD27EAA6F41128E70CEAB9DE4FF19" indent="up1"><enum>(A)</enum><text display-inline="yes-display-inline">$51,000,000 for fiscal year 2007, of which
$6,000,000 shall be available for language immersion programs under such
section;</text>
</subparagraph><subparagraph id="id02EE4D2180684926B3732CA4A9FADC56" indent="up1"><enum>(B)</enum><text display-inline="yes-display-inline">$56,000,000 for fiscal year 2008, of which
$7,000,000 shall be available for language immersion programs under such
section;</text>
</subparagraph><subparagraph id="id9A1618EDABEF42C6ADC5BCB5D8313AE3" indent="up1"><enum>(C)</enum><text display-inline="yes-display-inline">$62,000,000 for fiscal year 2009, of which
$8,000,000 shall be available for language immersion programs under such
section;</text>
</subparagraph><subparagraph id="id41C10B4AA6EE4ABEA29707C949CB9A1E" indent="up1"><enum>(D)</enum><text display-inline="yes-display-inline">$68,000,000 for fiscal year 2010, of which
$9,000,000 shall be available for language immersion programs under such
section; and</text>
</subparagraph><subparagraph id="idD702796ADB18445684404C25DB011D02" indent="up1"><enum>(E)</enum><text display-inline="yes-display-inline">$79,000,000 for fiscal year 2011, of which
$11,000,000 shall be available for language immersion programs under such
section.</text>
</subparagraph></paragraph><paragraph id="id2170DFD7C47F42E6B2B7BB2BB561E3E9" indent="up1"><enum>(2)</enum><text>In this subsection the term
<term>language immersion program</term> means a site-based educational program
that provides a complete education through a Native American language with the
specific goal of strengthening, revitalizing, or reestablishing a Native
American language and culture of daily
life.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</section><enum>VII</enum><header>Life long
learning</header>
<section id="id1C9431E0AAEE4EEBBC723A0AF2D6C89C"><enum>701.</enum><header>Findings</header><text display-inline="no-display-inline">Congress makes the following
findings:</text>
<paragraph id="id6C39C298A0E14A3D8F1FB9273BE5F2B1"><enum>(1)</enum><text>Education is
important to every American at all stages of life.</text>
</paragraph><paragraph id="id4F5ACE2CCCFB481DBCA01A1E72723510"><enum>(2)</enum><text>Today's economy
requires workers to continue to improve their skills, knowledge, and
abilities.</text>
</paragraph></section><section id="id892F8C428555413DADBA34EA370F7404"><enum>702.</enum><header>Job skill
training partnerships</header><text display-inline="no-display-inline">Title
III of the <act-name parsable-cite="HEA65">Higher Education Act of
1965</act-name> (20 U.S.C. 1051 et seq.) is amended—</text>
<paragraph id="ID2C012886F87F49A296A38468CD0E6C40"><enum>(1)</enum><text>by redesignating
part F as part G; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idF79A9164236C479EAC53BB598DD76100"><enum>(2)</enum><text>by inserting
after part E the following:</text>
<quoted-block display-inline="no-display-inline" id="ID28B30EC38FEE4D56B6BCC76E62124F5F" style="OLC">
<part id="ID3F335A2DC49040149829CF06FC4C10BB"><enum>VI</enum><header>Job skill
training</header>
<subpart id="ID9ABE88571CA8407F873EA241D3C029D3"><enum>A</enum><header>Job skill
training in high-Growth occupations or industries</header>
<section id="IDDF5EFBC6B9C444F6909ACCFDE9D6AB7A"><enum>371.</enum><header>Job skill
training in high-growth occupations or industries</header>
<subsection id="ID279AF72E83D048F7B29DB9081E6CC8A9"><enum>(a)</enum><header>Grants
authorized</header><text>The Secretary is authorized to award grants, on a
competitive basis, to eligible partnerships to enable the eligible partnerships
to provide relevant job skill training in high-growth industries or
occupations.</text>
</subsection><subsection id="ID67AF56C700234891AEAFC8E69865FB01"><enum>(b)</enum><header>Definitions</header><text>In
this section:</text>
<paragraph id="IDBDFD11931D0A4BDB9DE35A01C617E99C"><enum>(1)</enum><header>Eligible
partnership</header><text>The term <term>eligible partnership</term> means a
partnership—</text>
<subparagraph id="ID56B24B65B0264DB49914880905EA30D4"><enum>(A)</enum><text>between an
institution of higher education and a local board (as such term is defined in
section 101 of the Workforce Investment Act of 1998); or</text>
</subparagraph><subparagraph id="IDC3D0C1EEDE7D4FCFBC784CEF6720A1DC"><enum>(B)</enum><text>if an institution
of higher education is located within a State that does not operate local
boards, between the institution of higher education and a State board (as such
term is defined in section 101 of the Workforce Investment Act of 1998).</text>
</subparagraph></paragraph><paragraph id="IDF9764500BCBB4D8D878A48CDB924E518"><enum>(2)</enum><header>Nontraditional
student</header><text>The term <term>nontraditional student</term> means a
student who—</text>
<subparagraph id="IDCF4974B46C164E4DA0B8D54D36F7C0F1"><enum>(A)</enum><text>is independent,
as defined in section 480(d);</text>
</subparagraph><subparagraph id="ID2D8828F2B5E140488BC86272BB777627"><enum>(B)</enum><text>attends an
institution of higher education—</text>
<clause id="ID15767323C7B64A529A26A73C75A5DE99"><enum>(i)</enum><text>on less than a
full-time basis;</text>
</clause><clause id="IDCEFF9EC4A4AA4954B85776CF2E22E6D8"><enum>(ii)</enum><text>via evening,
weekend, modular, or compressed courses; or</text>
</clause><clause id="IDA606DB20BEF14D35B50465755DCB4A42"><enum>(iii)</enum><text>via distance
learning methods; or</text>
</clause></subparagraph><subparagraph id="ID85FC62C9B68D4A129BC32FD7D8D329D9"><enum>(C)</enum><text>has delayed
enrollment at an institution of higher education.</text>
</subparagraph></paragraph><paragraph id="ID70BC5C63816D499DA6E954F0CDE6D382"><enum>(3)</enum><header>Institution of
higher education</header><text>The term <term>institution of higher
education</term> means an institution of higher education, as defined in
section 101(b), that offers a 1- or 2-year program of study leading to a degree
or certificate.</text>
</paragraph></subsection><subsection id="IDE60F363DFA8C411183761A5579065FBA"><enum>(c)</enum><header>Application</header>
<paragraph id="ID2A01A10502654A53809E5FC2C3A5D81F"><enum>(1)</enum><header>In
general</header><text>Each eligible partnership that desires a grant under this
section shall submit an application to the Secretary at such time, in such
manner, and accompanied by such additional information as the Secretary may
require.</text>
</paragraph><paragraph id="ID14752B4815414C75980F692F187D7112"><enum>(2)</enum><header>Contents</header><text>Each
application submitted under paragraph (1) shall include a description
of—</text>
<subparagraph id="ID22A184C3CE074DFCAACED561B28403EA"><enum>(A)</enum><text>how the eligible
partnership, through the institution of higher education, will provide relevant
job skill training for students to enter high-growth occupations or
industries;</text>
</subparagraph><subparagraph id="ID98BA27D606154A8A9877C66216C084F4"><enum>(B)</enum><text>local high-growth
occupations or industries; and</text>
</subparagraph><subparagraph id="ID15C04DC6CA6743FAB525F5147E815AF9"><enum>(C)</enum><text>the need for
qualified workers to meet the local demand of high-growth occupations or
industries.</text>
</subparagraph></paragraph></subsection><subsection id="ID9756015E69D14C43A6CC288B28D7588E"><enum>(d)</enum><header>Award
basis</header><text>In awarding grants under this section, the Secretary
shall—</text>
<paragraph id="IDFE6A03513D394D59B2411B6899C737E7"><enum>(1)</enum><text>ensure an
equitable distribution of grant funds under this section among urban and rural
areas of the United States; and</text>
</paragraph><paragraph id="ID32C1AE18E3EE40888E732F0FBC1730E5"><enum>(2)</enum><text>take into
consideration the capability of the institution of higher education—</text>
<subparagraph id="ID38AD76F7BCF8439EAD713D8A87BD27B8"><enum>(A)</enum><text>to offer
relevant, high quality instruction and job skill training for students entering
a high-growth occupation or industry;</text>
</subparagraph><subparagraph id="ID3B878A2D5D0B488F8939E6464B68EAE9"><enum>(B)</enum><text>to involve the
local business community and to place graduates in the community in employment
in high-growth occupations or industries;</text>
</subparagraph><subparagraph id="IDAE732EBF41D54CF1ACCD11CC88138D35"><enum>(C)</enum><text>to assist
students in obtaining loans under section 428L, if appropriate, or other forms
of student financial assistance;</text>
</subparagraph><subparagraph id="ID19315F4491F248C48DC4BF9C8F30A215"><enum>(D)</enum><text>to serve
nontraditional or low-income students, or adult or displaced workers;
and</text>
</subparagraph><subparagraph id="IDD7C3391685F040AD93FF463E58C43B4F"><enum>(E)</enum><text>to serve students
from rural or remote communities.</text>
</subparagraph></paragraph></subsection><subsection id="ID5EFA6A09DF374FE997A7A3FE96357A4B"><enum>(e)</enum><header>Use of
funds</header><text>Grant funds provided under this section may be used—</text>
<paragraph id="ID950FB0930372479FAE573431910CA9BE"><enum>(1)</enum><text>to expand or
create academic programs or programs of training that provide relevant job
skill training for high-growth occupations or industries;</text>
</paragraph><paragraph id="ID58749A8F47D04597B0FBDE528692E8A8"><enum>(2)</enum><text>to purchase
equipment which will facilitate the development of academic programs or
programs of training that provide training for high-growth occupations or
industries;</text>
</paragraph><paragraph id="ID49AFBEEEE6D94C928853FCC23CE37DA7"><enum>(3)</enum><text>to support
outreach efforts that enable students to attend institutions of higher
education with academic programs or programs of training focused on high-growth
occupations or industries;</text>
</paragraph><paragraph id="ID30D2C37117A54CF09A5473A50CEDB233"><enum>(4)</enum><text>to expand or
create programs for distance, evening, weekend, modular, or compressed learning
opportunities that provide relevant job skill training in high-growth
occupations or industries;</text>
</paragraph><paragraph id="ID2503A523437944A7870765A87F57FFF3"><enum>(5)</enum><text>to build
partnerships with local businesses in high-growth occupations or industries;
and</text>
</paragraph><paragraph id="IDF6FDD3A35CAA4BE08C070C8B4A8D7A1A"><enum>(6)</enum><text>for other uses
that the Secretary determines to be consistent with the intent of this
section.</text>
</paragraph></subsection><subsection id="ID1E52736A8CCB429E8FC161858F396653"><enum>(f)</enum><header>Requirements</header>
<paragraph id="IDDB781EABF6BD4A0B8F9190AF648E23D0"><enum>(1)</enum><header>Fiscal
agent</header><text>For the purpose of this section, the institution of higher
education in an eligible partnership shall serve as the fiscal agent and grant
recipient for the eligible partnership.</text>
</paragraph><paragraph id="IDFFF185C00DEA4106BB6D6B5E567C56AB"><enum>(2)</enum><header>Duration</header><text>The
Secretary shall award grants under this section for a 1-year period.</text>
</paragraph><paragraph id="ID1F7FB63612ED4E3A8C66E5025EBA7025"><enum>(3)</enum><header>Availability of
grant funds</header><text>Grant funds awarded under this section shall be
available for not more than 18 months unless, at the Secretary’s discretion,
the Secretary extends the availability of the grant funds.</text>
</paragraph><paragraph id="ID2376DEF154294B49911CF87B9A9F58B6"><enum>(4)</enum><header>Supplement, not
supplant</header><text>Funds made available under this section shall be used to
supplement and not supplant other Federal, State, and local funds available to
the eligible partnership for carrying out the activities described in
subsection
(e).</text>
</paragraph></subsection></section></subpart></part><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="id4BE5342499A846FA9C185547798A56A6"><enum>703.</enum><header>Small business
innovation partnerships</header><text display-inline="no-display-inline">Part F
of title III of the Higher Education Act (as amended by section 702) is further
amended by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idC57F0A353ECD4CA8A57AD2859EFD1E37" style="OLC">
<subpart id="IDE12ADE0F2F614009BFBCE79FCE541CB2"><enum>B</enum><header>Small business
innovation partnership grants</header>
<section id="ID8F120A90DC33431D97287D0973B9DD4E"><enum>375.</enum><header>Small business
innovation partnership grants</header>
<subsection id="ID2844B00008C04E15BE9B023BB7A78E67"><enum>(a)</enum><header>Grants
authorized</header><text>The Secretary is authorized to award grants to
eligible partnerships to enable the eligible partnerships to provide training
and relevant job skills to small business owners or operators for the purpose
of facilitating small business development in the communities served by the
eligible partnerships.</text>
</subsection><subsection id="ID4074D2378AE543EEA2FB276F3F1D46E1"><enum>(b)</enum><header>Definition of
eligible partnership</header><text>In this section the term <term>eligible
partnership</term> means a partnership between or among an institution of
higher education and 1 or more entities that the Secretary, in consultation
with the Administrator of the Small Business Administration, identifies as
facilitating small business development, which may include—</text>
<paragraph id="ID275532D4F0B343CE84CCB98AC637AFF1"><enum>(1)</enum><text>a community
development financial institution;</text>
</paragraph><paragraph id="ID42E041B309C345A385AA654C6AECB404"><enum>(2)</enum><text>a small business
development center; or</text>
</paragraph><paragraph id="ID40059FC60DB942FAB22D4D26FEB0DC98"><enum>(3)</enum><text>a microenterprise
lending institution.</text>
</paragraph></subsection><subsection id="ID89ECBEF891E049B78E01973F2B543F83"><enum>(c)</enum><header>Award
basis</header><text>The Secretary shall award grants under this section on the
basis of—</text>
<paragraph id="ID596E893A644E461A880491E6A4202A9A"><enum>(1)</enum><text>the ability of an
eligible partnership to facilitate small business development; and</text>
</paragraph><paragraph id="IDFCB215ADE3274E37AADC6080DCC213AC"><enum>(2)</enum><subparagraph commented="no" display-inline="yes-display-inline" id="ID61F5920FC82443C4AA2C53F3E2E4C539"><enum>(A)</enum><text>the ability of an
eligible partnership to serve a rural community;</text>
</subparagraph><subparagraph id="ID19A8AD68A128452B8F2D04F3ABDA406F" indent="up1"><enum>(B)</enum><text>the ability of an eligible partnership
to serve a low-income population; or</text>
</subparagraph><subparagraph id="ID258A04CE4BDF4151B3E3A6D53E918089" indent="up1"><enum>(C)</enum><text>other criteria developed by the
Secretary in consultation with the Administrator of the Small Business
Administration.</text>
</subparagraph></paragraph></subsection><subsection id="ID8C18A11D13694E169AFA06A85A43D25D"><enum>(d)</enum><header>Limitation</header><text>Of
the funds appropriated under section 378 for this part for a fiscal year, the
Secretary is authorized to use not more than $15,000,000 of such funds to carry
out this
section.</text>
</subsection></section></subpart><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idDB0BC838225346BC819436453A64C51D"><enum>704.</enum><header>Job skill
training authorization of appropriations</header><text display-inline="no-display-inline">Part F of title III of the Higher Education
Act (as amended by section 703) is further amended by adding at the end the
following:</text>
<quoted-block display-inline="no-display-inline" id="id769CF69D0C044116ACCE8B1F7A09FD21" style="OLC">
<subpart id="ID4A9D0DD4F9A7465E9CE94AE892DBB07C"><enum>C</enum><header>Administrative
provisions</header>
<section commented="no" display-inline="no-display-inline" id="ID18F56A766F1B455184E50CB8F07F5F86" section-type="subsequent-section"><enum>378.</enum><header>Authorization of
appropriations</header><text display-inline="no-display-inline">There are
authorized to be appropriated to carry out this part $100,000,000 for fiscal
year 2007 and such sums as may be necessary for each of the 4 succeeding fiscal
years.</text>
</section></subpart><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section id="idF5EDF1FDD7E542A0A36603D312513D40"><enum>705.</enum><header>Distance
learning</header>
<subsection id="id03D2E89F0AD14BCC90FE3BB4CEB1A2AC"><enum>(a)</enum><header>Grants
authorized</header><text>The Secretary is authorized to award grants to State
educational agencies and local educational agencies to enable such educational
agencies to—</text>
<paragraph id="id3B1FCAAA69F440FE81E904E74215B6E6"><enum>(1)</enum><text>establish,
develop, expand, and supplement programs for distance learning through the
Internet; and</text>
</paragraph><paragraph id="idFB69EA9BD1F1481F8F151AFDDE5ABFA7"><enum>(2)</enum><text>acquire the
technology for such programs.</text>
</paragraph></subsection><subsection id="id37F697A511E1412BA40EF54DF50FA681"><enum>(b)</enum><header>Application</header><text>A
State educational agency or local educational agency desiring a grant under
this section shall submit an application to the Secretary at such time, in such
manner, and containing such information as the Secretary may require.</text>
</subsection><subsection id="id11A401B3D6324803A5F3886C1CA9E268"><enum>(c)</enum><header>Authorization
of appropriations</header><text>There is authorized to be appropriated to carry
out this section $100,000,000 for each of the fiscal years 2007 through
2011.</text>
</subsection></section><enum>VIII</enum><header>Education tax
incentives</header>
<section id="id07C249AE094D4E34B26AFD8289C85283"><enum>800.</enum><header>Findings</header><text display-inline="no-display-inline">Congress finds the following:</text>
<paragraph id="ID7ca4841e7c6c4a01b2547093c4989261"><enum>(1)</enum><text>The Department of
Labor statistics show that 90 percent of the fastest growing jobs require some
post-secondary education. According to the Bureau of Labor Statistics, jobs
requiring science, engineering, or technical training will increase 24 percent
between 2004 and 2014 to 6,300,000.</text>
</paragraph><paragraph id="ID3dbfd6f9279f4c2db78079c0c84b88ac"><enum>(2)</enum><text>An Organization
for Economic Co-operation and Development study has shown that college
graduates in the United States earn nearly twice as much as workers with just a
secondary school diploma, one of the highest rates in the world.</text>
</paragraph><paragraph id="ID71ac18eaed644745b19a13a45658fbc7"><enum>(3)</enum><text>Reports have
shown that for American families with the lowest income, if a student from such
a family were to attend a public 4-year institution of higher education in the
United States, the student's net cost to attend would represent a high
percentage of the family's income annually.</text>
</paragraph><paragraph id="idA845592C19CB41EB919A53B0FACCE19A"><enum>(4)</enum><text>Fifty percent of
all undergraduates received some Federal financial aid in the 2003–2004
academic year, up from 40 percent in the 2000–2001 academic year.</text>
</paragraph><paragraph id="ID0513db118d9043998a933c1075c1d56a"><enum>(5)</enum><text>Tax incentives
support higher education and help families make education more affordable. The
way families and students receive these incentives is complex, making it
difficult to determine what the right choices are.</text>
</paragraph><paragraph id="ID9d71d7b40165493ca743b52c23a868de"><enum>(6)</enum><text>To support K–16
education, more options are needed for families to use savings penalty-free for
college expenses.</text>
</paragraph></section><subtitle id="idAB6805FEB8AF49CCA77879385F78C629"><enum>A</enum><header>Benefits for
current expenses</header>
<section id="idA5C2F40C957B432795D8D782E34E9ABE"><enum>801.</enum><header>Refundable
higher education credit</header>
<subsection id="ID883B7F5629BE4E97A9C1E6F7AA11012F"><enum>(a)</enum><header>In
general</header><text>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 36 as section 37 and by inserting after section 35 the
following new section:</text>
<quoted-block display-inline="no-display-inline" id="id8F0043B33A6E40458525F35EF4C100BA" style="OLC">
<section id="idFF0860F82C72443ABE0A1A1E3B56C068"><enum>36.</enum><header>Higher
education credit</header>
<subsection id="idA7473A874AA94CDC87ACDE2DCCBC3473"><enum>(a)</enum><header>Allowance of
credit</header><text>In the case of an individual, there shall be allowed as a
credit against the tax imposed by this subtitle for the taxable year an amount
equal to the qualified tuition and related expenses paid by the taxpayer during
the taxable year.</text>
</subsection><subsection id="id9C121779A26C4E24B21E7FA69FE1915C"><enum>(b)</enum><header>Limitations</header>
<paragraph id="id29DE7AFC71FF48A8BB04FB30C4E6D3C1"><enum>(1)</enum><header>Per student
limitation</header><text>The amount of the credit allowable under subsection
(a) with respect to any student shall not exceed so much of the qualified
tuition and related expenses paid by the taxpayer during the taxable year (for
education furnished to the student during any academic period beginning in such
taxable year) as does not exceed $2,000.</text>
</paragraph><paragraph id="id5F9902FEE5E64DEF995414617F2FCACB"><enum>(2)</enum><header>Limitation
based on modified adjusted gross income</header>
<subparagraph id="id7722758BADA8460AB0B6107D4EB11E03"><enum>(A)</enum><header>In
general</header><text>The amount which would (but for this paragraph) be taken
into account under subsection (a) for the taxable year shall be reduced (but
not below zero) by the amount determined under subparagraph (B).</text>
</subparagraph><subparagraph id="ID7b06516e099e4449bcfec57f1e8077f0"><enum>(B)</enum><header>Amount of
reduction</header><text>The amount determined under this subparagraph is the
amount which bears the same ratio to the amount which would be so taken into
account as—</text>
<clause id="ID3bae559710b74b67ac7382ec33c42010"><enum>(i)</enum><text>the excess
of—</text>
<subclause id="ID4283e6c995ca4ba896a0a3343d4a0ea7"><enum>(I)</enum><text>the taxpayer's
modified adjusted gross income for such taxable year, over</text>
</subclause><subclause id="ID281ec8caa23b4dbfbc74285270acc5b5"><enum>(II)</enum><text>$40,000 ($80,000
in the case of a joint return), bears to</text>
</subclause></clause><clause id="IDc5471253c283443c8206ff99c0841e03"><enum>(ii)</enum><text>$10,000 ($20,000
in the case of a joint return).</text>
</clause></subparagraph><subparagraph id="IDddd7ed2821894a379e21ec4fda04f9c8"><enum>(C)</enum><header>Modified
adjusted gross income</header><text>The term <term>modified adjusted gross
income</term> means the adjusted gross income of the taxpayer for the taxable
year increased by any amount excluded from gross income under section 911, 931,
or 933.</text>
</subparagraph></paragraph></subsection><subsection id="idF700709A6E004674846370BECBF9AC53"><enum>(c)</enum><header>Definitions</header><text>For
purposes of this section—</text>
<paragraph id="idA0C0F2B3EFCF45549A1A4200E7D63FDF"><enum>(1)</enum><header>Qualified
tuition and related expenses</header>
<subparagraph id="id7585517C63484332B1241433C8BC7F36"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified tuition and related
expenses</term> means—</text>
<clause id="ID670c7cd7613340eb8e60c6bb60134266"><enum>(i)</enum><text>tuition, fees,
books, supplies, and equipment required for the enrollment or attendance
of—</text>
<subclause id="id9D37FE56AF1C410190311D599C39F9ED"><enum>(I)</enum><text>the
taxpayer,</text>
</subclause><subclause id="id418EC4C5B12044D58FC19127876FEEC7"><enum>(II)</enum><text>the taxpayer's
spouse, or</text>
</subclause><subclause id="idC55EBA395C8841BEA3DDFE36BF30B7B0"><enum>(III)</enum><text>any dependent
of the taxpayer with respect to whom the taxpayer is allowed a deduction under
section 151,</text>
</subclause><continuation-text continuation-text-level="clause">at an
eligible educational institution for courses of instruction of such individual
at such institution, and</continuation-text></clause><clause id="ID186ab469b7a34f3d8e26ada04db1b151"><enum>(ii)</enum><text>expenses for
special needs services in the case of an individual with special needs which
are incurred in connection with such enrollment or attendance.</text>
</clause></subparagraph><subparagraph id="idEABA18BBC2C94080AB53B6E11BD0B022"><enum>(B)</enum><header>Exceptions</header><text>Except
as otherwise provided in this section, such term does not include—</text>
<clause id="IDc3a99132ee764eed8e44eb00a39b0ac7"><enum>(i)</enum><text>expenses with
respect to any course or other education involving sports, games, or hobbies,
unless such course or other education is part of the individual's degree
program, and</text>
</clause><clause id="IDeb604928f0a441b0b2de396a6515fd26"><enum>(ii)</enum><text>student activity
fees, athletic fees, insurance expenses, or other expenses unrelated to an
individual's academic course of instruction.</text>
</clause></subparagraph></paragraph><paragraph id="idC2D807AEE9254FB59E2FDDB4D72B8B27"><enum>(2)</enum><header>Eligible
educational institution</header><text>The term <term>eligible educational
institution</term> means an institution—</text>
<subparagraph id="IDdafd9743fcf44589ad0826e256f38df7"><enum>(A)</enum><text>which is
described in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088),
as in effect on the date of the enactment of the Taxpayer Relief Act of 1997,
and</text>
</subparagraph><subparagraph id="ID34245e2225144220b8e7fdf762cfbaf7"><enum>(B)</enum><text>which is eligible
to participate in a program under title IV of such Act.</text>
</subparagraph></paragraph></subsection><subsection id="idD11F98A3613049CF9611898D4A52ADEC"><enum>(d)</enum><header>Special
rules</header>
<paragraph id="IDcf119a54fa6646869119a049d9dadcc1"><enum>(1)</enum><header>Identification
requirement</header><text>No credit shall be allowed under subsection (a) to a
taxpayer with respect to the qualified tuition and related expenses of an
individual unless the taxpayer includes the name and taxpayer identification
number of such individual on the return of tax for the taxable year.</text>
</paragraph><paragraph id="ID9c3a969f69db4ef99be088c12e470d08"><enum>(2)</enum><header>Adjustment for
certain scholarships, etc</header><text>The amount of qualified tuition and
related expenses otherwise taken into account under subsection (a) with respect
to an individual for an academic period shall be reduced (before the
application of subsection (b)) by the sum of any amounts paid for the benefit
of such individual which are allocable to such period as—</text>
<subparagraph id="ID411fa2b9f18d4066a10c4dce0ec7b47a"><enum>(A)</enum><text>a qualified
scholarship which is excludable from gross income under section 117,</text>
</subparagraph><subparagraph id="ID2a0c265267174a84a7236466d1baec3d"><enum>(B)</enum><text>an educational
assistance allowance under chapter 30, 31, 32, 34, or 35 of title 38, United
States Code, or under chapter 1606 of title 10, United States Code, and</text>
</subparagraph><subparagraph id="ID16d94fb9c3454127be035f9a6e8c7321"><enum>(C)</enum><text>a payment (other
than a gift, bequest, devise, or inheritance within the meaning of section
102(a)) for such individual's educational expenses, or attributable to such
individual's enrollment at an eligible educational institution, which is
excludable from gross income under any law of the United States.</text>
</subparagraph></paragraph><paragraph id="ID483aebe0031545fbae95411e0c9715b1"><enum>(3)</enum><header>Treatment of
expenses paid by dependent</header><text>If a deduction under section 151 with
respect to an individual is allowed to another taxpayer for a taxable year
beginning in the calendar year in which such individual's taxable year
begins—</text>
<subparagraph id="ID71c6523f70b64c98ae90e2c523f9a76d"><enum>(A)</enum><text>no credit shall
be allowed under subsection (a) to such individual for such individual's
taxable year, and</text>
</subparagraph><subparagraph id="IDb985ab7c4ee144e48093611f0c585d95"><enum>(B)</enum><text>qualified tuition
and related expenses paid by such individual during such individual's taxable
year shall be treated for purposes of this section as paid by such other
taxpayer.</text>
</subparagraph></paragraph><paragraph id="ID29a31dba278c4ac5ad4ec0db5862dabc"><enum>(4)</enum><header>Treatment of
certain prepayments</header><text>If qualified tuition and related expenses are
paid by the taxpayer during a taxable year for an academic period which begins
during the first 3 months following such taxable year, such academic period
shall be treated for purposes of this section as beginning during such taxable
year.</text>
</paragraph><paragraph id="ID367762b2cf224f4c9d52c21fb42ba975"><enum>(5)</enum><header>Denial of
double benefit</header><text>No credit shall be allowed under this section for
any expense for which a deduction is allowed under any other provision of this
chapter.</text>
</paragraph><paragraph id="IDf02f604b05584d9b89e36c9bf8e880dd"><enum>(6)</enum><header>No credit for
married individuals filing separate returns</header><text>If the taxpayer is a
married individual (within the meaning of section 7703), this section shall
apply only if the taxpayer and the taxpayer's spouse file a joint return for
the taxable year.</text>
</paragraph><paragraph id="IDe9fb3430c95b487fae255965f4929161"><enum>(7)</enum><header>Nonresident
aliens</header><text>If the taxpayer is a nonresident alien individual for any
portion of the taxable year, this section shall apply only if such individual
is treated as a resident alien of the United States for purposes of this
chapter by reason of an election under subsection (g) or (h) of section
6013.</text>
</paragraph></subsection><subsection id="ID0b0fafa477d64f22811bac5d5c56ce39"><enum>(e)</enum><header>Inflation
adjustments</header>
<paragraph id="IDae77b9dffe2f4eb8b8fadb62ac79f4f4"><enum>(1)</enum><header>Dollar
limitation on amount of credit</header>
<subparagraph id="IDe418e5dcbc7a43e3abc899275931d281"><enum>(A)</enum><header>In
general</header><text>In the case of a taxable year beginning after 2007, the
$2,000 amount under subsection (b)(1) shall be increased by an amount equal
to—</text>
<clause id="ID8632ae77a30e4ae1bf03d26c89c72524"><enum>(i)</enum><text>such dollar
amount, multiplied by</text>
</clause><clause id="IDa28c3dbe414746cbae657771e1154598"><enum>(ii)</enum><text>the
cost-of-living adjustment determined under section 1(f)(3) for the calendar
year in which the taxable year begins, determined by substituting
<quote>calendar year 2006</quote> for <quote>calendar year 1992</quote> in
subparagraph (B) thereof.</text>
</clause></subparagraph><subparagraph id="ID487b2a6f94274e768f0b81a724226603"><enum>(B)</enum><header>Rounding</header><text>If
any amount as adjusted under subparagraph (A) is not a multiple of $100, such
amount shall be rounded to the next lowest multiple of $100.</text>
</subparagraph></paragraph><paragraph id="ID148d269989e74c46b4de2cbd275b1a19"><enum>(2)</enum><header>Income
limits</header>
<subparagraph id="idA6BEA0405BBC49F39E368A7A59F00E75"><enum>(A)</enum><header>In
general</header><text>In the case of a taxable year beginning after 2001, the
$40,000 and $80,000 amounts in subsection (b)(2) shall each be increased by an
amount equal to—</text>
<clause id="IDd099fcb5d1374c66b9909ab3a4b2122a"><enum>(i)</enum><text>such dollar
amount, multiplied by</text>
</clause><clause id="ID5c75d0019d45476dabdcdb92dfcc32fa"><enum>(ii)</enum><text>the
cost-of-living adjustment determined under section 1(f)(3) for the calendar
year in which the taxable year begins, determined by substituting
<quote>calendar year 2000</quote> for <quote>calendar year 1992</quote> in
subparagraph (B) thereof.</text>
</clause></subparagraph><subparagraph id="ID58f74673ab5b4632baa9c578cc3af75b"><enum>(B)</enum><header>Rounding</header><text>If
any amount as adjusted under subparagraph (A) is not a multiple of $1,000, such
amount shall be rounded to the next lowest multiple of $1,000.</text>
</subparagraph></paragraph></subsection><subsection id="ID5bab28ef7b884b0d92ff4bf6e4593ca8"><enum>(f)</enum><header>Regulations</header><text>The
Secretary may prescribe such regulations as may be necessary or appropriate to
carry out this section, including regulations providing for a recapture of the
credit allowed under this section in cases where there is a refund in a
subsequent taxable year of any amount which was taken into account in
determining the amount of such
credit.</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="IDAF6333E8C25443A8874D22F712FA8E4C"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id34AFFD32027543549E2AADBB01C16FAC"><enum>(1)</enum><header>Repeal of hope
and lifetime learning credits</header>
<subparagraph id="id8C4EB7953F2F4101A43E32CA7B1B8E41"><enum>(A)</enum><text>Subpart A of part
IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended
by striking section 25A.</text>
</subparagraph><subparagraph id="ID216E7EF44826485A95BB524748B52D29"><enum>(B)</enum><text>Subparagraph (B)
of section 72(t)(7) of such Code is amended by striking <quote>section
25A(g)(2)</quote> and inserting <quote>section 36(e)(2)</quote>.</text>
</subparagraph><subparagraph id="ID977BFEF5B0BC4CC291EF425096A8E5F4"><enum>(C)</enum><text>Subparagraph (A)
of section 135(d)(2) of such Code is amended by striking <quote>section
25A</quote> and inserting <quote>section 36</quote>.</text>
</subparagraph><subparagraph id="IDD7F9C5388F5E491585058858691F8923"><enum>(D)</enum><text>Section 221(d) of
such Code is amended—</text>
<clause id="ID5B6B80DC4A5F4CD09D9DEBBAB2DBB4A5"><enum>(i)</enum><text>by
striking <quote>section 25A(g)(2)</quote> in paragraph (2)(B) and inserting
<quote>section 36(e)(2)</quote>,</text>
</clause><clause id="IDDDF89E33797A48578CCA8AF259ABF36E"><enum>(ii)</enum><text>by
striking <quote>section 25A(f)(2)</quote> in paragraph (2)(B) and inserting
<quote>section 36(d)(2)</quote>, and</text>
</clause><clause id="IDA3EC4D0A3520482F9211AC64B4299957"><enum>(iii)</enum><text>by striking
<quote>section 25A(b)(3)</quote> in paragraph (3) and inserting <quote>section
36(d)(1)(B)(iii)</quote>.</text>
</clause></subparagraph><subparagraph id="id56DAAFFA30CC4EFDABA1BF5ED83A4F42"><enum>(E)</enum><text>Section 222 of
such Code is amended—</text>
<clause id="id30098F52B5A54A268566306654427ECE"><enum>(i)</enum><text>by
striking <quote>section 25A</quote> in subsection (c)(2)(A) and inserting
<quote>section 36</quote>,</text>
</clause><clause id="idC0AA6830B5EE4724B243FCFEA29CB0CD"><enum>(ii)</enum><text>by
striking <quote>section 25A(f)</quote> in subsection (d)(1) and inserting
<quote>section 36(d)(1)</quote>, and</text>
</clause><clause id="id37CB63A6D0DE4ABB9BAFAC60F7D80828"><enum>(iii)</enum><text>by striking
<quote>section 25A(g)(2)</quote> in subsection (d)(1) and inserting
<quote>section 36(e)(2)</quote>.</text>
</clause></subparagraph><subparagraph id="ID66B91154843449E1AD47A0003021BF3D"><enum>(F)</enum><text>Section 529 of
such Code is amended—</text>
<clause id="ID9BF039D3331847E7A07730998E83F6AA"><enum>(i)</enum><text>by
striking <quote>section 25A(g)(2)</quote> in subclause (I) of subsection
(c)(3)(B)(v) and inserting <quote>section 36(e)(2)</quote>,</text>
</clause><clause id="ID1A84FC3BEE58496781D94352FC67EF40"><enum>(ii)</enum><text>by
striking <quote>section 25A</quote> in subclause (II) of subsection
(c)(3)(B)(v) and inserting <quote>section 36</quote>, and</text>
</clause><clause id="IDDB9F0F978C134DD39470597827E4C889"><enum>(iii)</enum><text>by striking
<quote>section 25A(b)(3)</quote> in clause (i) of subsection (e)(3)(B) and
inserting <quote>section 36(d)(1)(B)(iii)</quote>.</text>
</clause></subparagraph><subparagraph id="ID573DF98F3556415DA53DADDD222E2479"><enum>(G)</enum><text>Section 530 of
such Code is amended—</text>
<clause id="IDC0DAC60D18E14D208BADE759976A056F"><enum>(i)</enum><text>by
striking <quote>section 25A(g)(2)</quote> in subclause (I) of subsection
(d)(2)(C)(i) and inserting <quote>section 36(e)(2)</quote>,</text>
</clause><clause id="ID73A4A4F8F97F45B28F0D5600C06B74C5"><enum>(ii)</enum><text>by
striking <quote>section 25A</quote> in subclause (II) of subsection
(d)(2)(C)(i) and inserting <quote>section 36</quote>, and</text>
</clause><clause id="ID9CC2F2F598894027BC645EDA3E202E54"><enum>(iii)</enum><text>by striking
<quote>section 25A(g)(2)</quote> in clause (iii) of subsection (d)(4)(B) and
inserting <quote>section 36(e)(2)</quote>.</text>
</clause></subparagraph><subparagraph id="IDD7F528479F8E4B7D869509AA5E1460F3"><enum>(H)</enum><text>Subsection (e) of
section 6050S of such Code is amended by striking <quote>section 25A</quote>
and inserting <quote>section 36</quote>.</text>
</subparagraph><subparagraph id="IDDD46E97BD46D40A39F3928776E17BF65"><enum>(I)</enum><text>Subparagraph (J)
of section 6213(g)(2) of such Code is amended by striking <quote>section
25A(g)(1)</quote> and inserting <quote>section 36(e)(1)</quote>.</text>
</subparagraph><subparagraph id="id3FFF957C97E04AB4A490B7DE01502729"><enum>(J)</enum><text>The table of
sections for subpart A of part IV of subchapter A of chapter 1 of such Code is
amended by striking the item relating to section 25A.</text>
</subparagraph></paragraph><paragraph id="id5A2FA875C3A048CF8B7C545D41BD2B1D"><enum>(2)</enum><header>Refundability
of credit</header><text>Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting before the period <quote>or enacted by the
<short-title>Education Competitiveness Act of
2006</short-title></quote>.</text>
</paragraph></subsection><subsection id="ID97346BCFA0014433A9B3035D3FE03254"><enum>(c)</enum><header>Clerical
amendment</header><text>The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by striking the item relating
to section 36 and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id9543861E960F4D6BB792BDA5D4571A51" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 36. Higher education
credit.</toc-entry>
<toc-entry level="section">Sec. 37. Overpayments of
tax.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection changed="not-changed" commented="no" id="ID92F327A6FA8F46018657447989573E42"><enum>(d)</enum><header>Effective
date</header>
<paragraph changed="not-changed" commented="no" id="id7001CD5999724B80A332BF81407D3074"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to expenses paid after December 31, 2006, for
education furnished in academic periods beginning after such date.</text>
</paragraph><paragraph changed="not-changed" commented="no" display-inline="no-display-inline" id="idBEFB87333BA34D64A221B3330CD6145E"><enum>(2)</enum><header>Exception</header><text>The
amendment made by subsection (b)(2) shall take effect on the date of the
enactment of this Act.</text>
</paragraph></subsection></section><section changed="not-changed" commented="no" display-inline="no-display-inline" id="idC0F7B29B3F4E418CB2047C09ABA75FA0"><enum>802.</enum><header>Increased
repayment period for higher education loans from qualified retirement
plans</header>
<subsection changed="not-changed" commented="no" display-inline="no-display-inline" id="id10E6CC64C1634ECD9835CCAC438F74B1"><enum>(a)</enum><header>In
general</header><text>Section 72(p)(2)(B) of the Internal Revenue Code of 1986
(relating to requirement that loan be repayable within 5 years) is amended by
adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="idBD3133E6A1DD45209A008990C2AE7AB1" style="OLC">
<clause commented="no" display-inline="no-display-inline" id="id0E4F20CECECA4A56AFE26933DB15D14C"><enum>(iii)</enum><header>Exception for
education loans</header><text>In the case of any loan used for qualified higher
education expenses (as defined in subsection (t)(7)(A), clause (i) shall by
applied by substituting <quote>10 years</quote> for <quote>5
years</quote>.</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection changed="not-changed" commented="no" display-inline="no-display-inline" id="id4F655BB95FFD4A44A301096E836042B6"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to loans made
after the date of the enactment of this Act.</text>
</subsection></section><section changed="not-changed" commented="no" display-inline="no-display-inline" id="id7575AFD9A248468CAE33EA96AE7FC6EE"><enum>803.</enum><header>Increased
employer provided educational assistance</header>
<subsection changed="not-changed" commented="no" display-inline="no-display-inline" id="idF06E0EA4C062404AB8823A9E1718AFC8"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 127(a) of the Internal Revenue
Code of 1986 (relating to exclusion from gross income) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id9570FF53B1FC420B9685504E5F315FC6" style="OLC">
<paragraph changed="not-changed" commented="no" display-inline="no-display-inline" id="idA243627CF74E41918CB61388DDCAE90F"><enum>(2)</enum><header>Maximum
exclusion</header>
<subparagraph changed="not-changed" commented="no" display-inline="no-display-inline" id="id63251205F47947149116FB3371699BD4"><enum>(A)</enum><header>In
general</header><text>If, but for this paragraph, this section would exclude
from gross income more than $7,000 of educational assistance furnished to an
individual during a calendar year, this section shall apply only to the first
$7,000 of such assistance so furnished.</text>
</subparagraph><subparagraph id="idFFF42E3E17B34B4B8827C42DD090486C"><enum>(B)</enum><header>Inflation
adjustment</header>
<clause id="id7DBE03739B9C4570A46A2594F7B9C1E1"><enum>(i)</enum><header>In
general</header><text>In the case of a calendar year beginning after 2007, the
$7,000 amount in subparagraph (A) shall be increased by an amount equal
to—</text>
<subclause id="id39A63C58CF17414CA299D2AC05331762"><enum>(I)</enum><text>such dollar
amount, multiplied by</text>
</subclause><subclause id="id612495AD230B4EEF9EDF500B99E47067"><enum>(II)</enum><text>the
cost-of-living adjustment determined under section 1(f)(3) for the calendar
year, determined by substituting <quote>calendar year 2006</quote> for
<quote>calendar year 1992</quote> in subparagraph (B) thereof.</text>
</subclause></clause><clause id="id4F3ABA68FE224A0CAEC8FB2AF4B383AF"><enum>(ii)</enum><header>Rounding</header><text>If
any amount as adjusted under clause (i) is not a multiple of $100, such amount
shall be rounded to the next lowest multiple of
$100.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection changed="not-changed" commented="no" display-inline="no-display-inline" id="id817C75E4E50446E996A88ED493F055D4"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2006.</text>
</subsection></section><section id="IDB29C1AD398F8412CBB78DA08524C4690"><enum>804.</enum><header>Above-the-line
deduction for certain expenses of elementary and secondary school
teachers</header>
<subsection id="idB8D5AD30C0644B60814D2F75D6ED14F7"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subparagraph (D) of
section 62(a)(2) of the Internal Revenue Code of 1986 (relating to certain
trade and business deductions of employees) is amended by striking <quote>In
the case</quote> and all that follows through <quote>$250,</quote> and insert
the following:</text>
<quoted-block display-inline="no-display-inline" id="id6FAE74054C5443ABBBCE9D349C43D4F2" style="OLC">
<clause id="id76CCACE3CFC14A2BAC89C180DBBF7BB5"><enum>(i)</enum><header>In
general</header><text>The deductions allowed by section 162 which consist of
expenses, not in excess of
$500,</text>
</clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id1859A98189A244A1BA7C6AFD002445C6"><enum>(b)</enum><header>Inflation
adjustment</header><text>Section 62(a)(2)(D) of such Code, as amended by
subsection(a), is amended by adding at the end the following new clause:</text>
<quoted-block display-inline="no-display-inline" id="id8250549C06C34796BE81DA425267BA4E" style="OLC">
<clause id="id078E3F715CC849E2AAB5C9146541D28C"><enum>(ii)</enum><header>Inflation
adjustment</header><text>In the case of a taxable year beginning after 2007,
the $500 amount under clause (i) shall be increased by an amount equal
to—</text>
<subclause id="id85D6442EE9E242E186D4E92BBF594ECE"><enum>(I)</enum><text>such dollar
amount, multiplied by</text>
</subclause><subclause id="id2EBFF734C993460BA2312BAEF53B7389"><enum>(II)</enum><text>the
cost-of-living adjustment determined under section 1(f)(3) for the calendar
year in which the taxable year begins, determined by substituting
<quote>calendar year 2006</quote> for <quote>calendar year 1992</quote> in
subparagraph (B) thereof.</text>
</subclause><continuation-text continuation-text-level="clause">If any amount
as adjusted under this clause is not a multiple of $10, such amount shall be
rounded to the next lowest multiple of
$10.</continuation-text></clause><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id10980372204E48C3A545F370E47DC616"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2006.</text>
</subsection></section></subtitle><subtitle id="idB10279463D0340F18127929D53A001EB"><enum>B</enum><header>Benefits for
future expenses</header>
<section id="id10AA8912FBDC4136ADD9EAD3E1B58ADD"><enum>811.</enum><header>Young Savers
Accounts</header>
<subsection commented="no" display-inline="no-display-inline" id="id5C73CAC479524DD09687D61DFC1EFE30"><enum>(a)</enum><header>In
general</header><text>Section 408A of the Internal Revenue Code of 1986
(relating to Roth IRAs) is amended by adding at the end the following new
subsection:</text>
<quoted-block display-inline="no-display-inline" id="id94A6D1562F9844E9A4B31B86705F3D92" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id5CFEB8E2E08646879060398A78C5B17C"><enum>(g)</enum><header>Young Savers
Accounts</header>
<paragraph commented="no" display-inline="no-display-inline" id="id8DC55DFD391A4722B2F4E63635C96DEF"><enum>(1)</enum><header>In
general</header><text>Except as provided in this subsection, a young savers
account shall be treated in the same manner as a Roth IRA.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idA14B95DF219646ACA1B65D443A3F0101"><enum>(2)</enum><header>Young savers
account</header><text>For purposes of this subsection, the term <term>young
savers account</term> means, with respect to any taxable year, a Roth IRA which
is established and maintained on behalf of an individual who has not attained
the age of 22 before the close of the taxable year.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id7DCBCE0EB6894F5698E2B408AEAA538D"><enum>(3)</enum><header>Contribution
limits</header><text>In the case of any contributions for any taxable year to 1
or more young savers accounts established and maintained on behalf of an
individual, each of the following contribution limits for the taxable year
shall be increased as follows:</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id5DF5428D1CD542C7AECBD4FC9B1B6913"><enum>(A)</enum><text>The contribution
limit applicable to the individual under subsection (c)(2) shall be increased
by the aggregate amount of qualified parental contributions to such accounts
for the taxable year.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id2BBFD06705B84748A266D759587C0CD5"><enum>(B)</enum><text>The contribution
limits applicable to the young savers accounts under subsection (a)(1) or
(b)(2)(B) of section 408, whichever is appropriate, shall be increased by the
dollar amount in effect under section 219(b)(1)(A) for the taxable year.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id1B950C8379B3430BAEA6AA6E6BCB62BE"><enum>(4)</enum><header>Qualified
parental contributions</header><text>For purposes of this subsection—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id84F252DF3F954A6189DD6CAD8D4ABFF4"><enum>(A)</enum><header>In
general</header><text>The term <term>qualified parental contribution</term>
means, with respect to any taxable year, a contribution by an individual to a
young savers account established and maintained on behalf of an individual
who—</text>
<clause commented="no" display-inline="no-display-inline" id="id137A8053C8654AD8A72167405AB6D6A6"><enum>(i)</enum><text>is the child of
the individual making the contribution, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idEAD86CC0AE1340EF9BFF7240D175C63A"><enum>(ii)</enum><text>with respect to
whom a deduction for an additional exemption is allowable for the taxable year
under section 151(c) to the individual making the contribution.</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id97BCB000FF1547C5AA852315D6C5EEE2"><enum>(B)</enum><header>Dollar
limitations</header>
<clause commented="no" display-inline="no-display-inline" id="idEAFBFD245A4E477A9EAB9429B951FCA4"><enum>(i)</enum><header>In
general</header><text>The aggregate amount of qualified parental contributions
which may be made for any taxable year on behalf of an individual shall not
exceed the dollar amount in effect under section 219(b)(1)(A) for the taxable
year.</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id31B1F3FD593A48108DA1124A2C42C1AA"><enum>(ii)</enum><header>Limit on each
parent</header><text>The aggregate amount of qualified parental contributions
which an individual may make for any taxable year on behalf of 1 or more of the
individual's children shall not exceed the contribution limit applicable to the
individual under subsection (c)(2) for the taxable year, reduced by any
contributions made by or on behalf of the individual to any Roth IRA
established and maintained on behalf of the individual.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id5F9167E868944B1AB292158C1AB1C4F5"><enum>(5)</enum><header>Qualified
distributions for higher education expenses</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id32041C15DB4449EE9215A495F52A2C17"><enum>(A)</enum><header>In
general</header><text>In the case of any young savers account, for purposes of
subsection (d), the term <term>qualified distribution</term> includes any
qualified higher education distribution.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id3136FB89D2C148DB8094483B95149DC1"><enum>(B)</enum><header>Qualified
higher education distribution</header><text>For purposes of subparagraph (A),
the term <term>qualified higher education distribution</term> means any
distribution to which subparagraph (E) of section 72(t)(2)
applies.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idBD93604509B349A2B6BE13A2090D7A94"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2006.</text>
</subsection></section></subtitle><subtitle id="id86EAC4AD64C84E9180AA3BB26F3ECFBF"><enum>C</enum><header>Benefits for past
expenses</header>
<section changed="not-changed" commented="no" id="id463A4DB8033E40629CB9C29007B985E9"><enum>821.</enum><header>Increased
deduction for student loan interest</header>
<subsection changed="not-changed" commented="no" id="idBF79C33A66804AF79D4E3AF35A6A7D41"><enum>(a)</enum><header>Increase in
deduction amount</header><text>Paragraph (1) of section 221(b) of the Internal
Revenue Code of 1986 (relating to maximum deduction) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id566401B80C9044119B5902AC991C3CCF" style="OLC">
<paragraph commented="no" id="idA95C57966C9B4435B52C3650C38C0DBB"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the deduction
allowed by subsection (a) for the taxable year shall not exceed
$3,000.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection changed="not-changed" commented="no" id="id51D70798DAA44F8EBE8D0999B7356F14"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2006.</text>
</subsection></section></subtitle><subtitle id="idA5F759AF9EEC4F8CBD7325D68C3C8C3C"><enum>D</enum><header>Other tax
incentives</header>
<section id="idB44653404B374F65B179AFFAB89DA3DD"><enum>831.</enum><header>Extension of
QZABs and expansion to financing certain postsecondary institutions</header>
<subsection id="id753A51ACCB4442FF8580E0A788DAB363"><enum>(a)</enum><header>Extension</header><text>Section
1397E(e)(1) of the Internal Revenue Code of 1986 (relating to national
limitation) is amended by striking <quote>and 2005</quote> and inserting
<quote>2005, 2006, and 2007</quote>.</text>
</subsection><subsection id="idD193D1DDBE364484985E28F664A2E29B"><enum>(b)</enum><header>Expansion</header><text>Section
1397E(d)(4) of the Internal Revenue Code of 1986 (defining qualified zone
academy) is amended—</text>
<paragraph id="id543AB523D73A4F2193F2A1F2C2483F11"><enum>(1)</enum><text>by striking
<quote>The term</quote> in subparagraph (A) and inserting <quote>Except as
provided in subparagraph (C), the term</quote>, and</text>
</paragraph><paragraph id="id4DF81AC5436947B4B03B09431DD2FF0B"><enum>(2)</enum><text>by adding at the
end of the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="idA156C8FF51404D16AB5E14B9DCA93762" style="OLC">
<subparagraph id="id2476923791E346C19C5EDFFC29037486"><enum>(C)</enum><header>Tribally
controlled college or university</header>
<clause id="id11B32CB2BE2C452D917F691E75D84B9B"><enum>(i)</enum><header>In
general</header><text>The term <term>qualified zone academy</term> means any
tribally controlled college or university if—</text>
<subclause id="idD6EEEE0394FB4950B22970E43A3505E1"><enum>(I)</enum><text>such college or
university is designed, in cooperation with business, to better prepare
students for the rigors of the increasingly complex workforce, and</text>
</subclause><subclause id="id2D543DD3251644F6B4FA1899C85B5192"><enum>(II)</enum><text>has an endowment
of not more than $25,000,000.</text>
</subclause></clause><clause id="idDC67A6AA04474E8B825D3D9FC0F55B5E"><enum>(ii)</enum><header>Tribally
controlled college or university</header><text>The term <term>tribally
controlled college or university</term> has the meaning given such term by
section 2(a)(4) of the Tribally Controlled College or University Assistance Act
of 1978 (25 U.S.C. 1801(a)(4)).</text>
</clause><clause id="id601A91E5C5754848946D73EAF4A1C616"><enum>(iii)</enum><header>Role of
Indian tribe</header><text>For purposes of this section, in applying paragraphs
(1)(A), (1)(C)(iii), and (2), <quote>Indian tribe</quote> shall be substituted
for <quote>eligible local education agency</quote> each place it
appears.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id731382719F6C40A8B6844E96BFA5D3A4"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to bonds
issued after December 31, 2005.</text>
</subsection></section><section changed="added" id="H4C438CE5912140388C287883C0D011FE"><enum>832.</enum><header>Additional
standard deduction for real property taxes for nonitemizers</header>
<subsection id="HCBAE76BA3F864BF1B7A50FFF5A16118B"><enum>(a)</enum><header>In general</header><text>Section
63(c)(1) (defining standard deduction) is amended by striking
<quote>and</quote> at the end of subparagraph (A), by striking the period at
the end of subparagraph (B) and inserting <quote>, and</quote>, and by adding
at the end the following new subparagraph:</text>
<quoted-block changed="added" id="HA7FE2798268C4A86A0411E1010552A55">
<subparagraph id="HECD838B0DCDA4F179B132338A1D7D25E"><enum>(C)</enum><text>the real property tax
deduction.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection changed="added" id="H0B5D4B6A24914DB4BC6B054E6CF439B5"><enum>(b)</enum><header>Definition</header><text>Section
63(c) is amended by adding at the end the following new paragraph:</text>
<quoted-block changed="added" id="H0DE6DAC102BC4AFDB7547364B30DB0B4">
<paragraph id="H8313C4A2DE7C4E14842DDFA07CDBC415"><enum>(8)</enum><header>Real property tax
deduction</header><text>For purposes of paragraph (1), the real property tax
deduction is so much of the amount of State and local real property taxes
(within the meaning of section 164) paid or accrued by the taxpayer during the
taxable year which do not exceed $500 ($1,000 in the case of a joint
return).</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H45F2ED121A6C46ADA11F86B3FD0D28F3"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2006.</text>
</subsection></section><section id="ID41E4BE25FCAD4B57AB8D46C6C4C15633"><enum>833.</enum><header>Extension and
expansion of charitable contribution allowed for scientific property used for
research and for computer technology and equipment used for educational
purposes</header>
<subsection id="IDED946C2A2B134DA981F074821B617A2D"><enum>(a)</enum><header>Scientific
property used for research</header>
<paragraph id="IDF0CC1579FAC143F9BE91723B83949439"><enum>(1)</enum><header>In
general</header><text>Clause (ii) of section 170(e)(4)(B) (defining qualified
research contributions) is amended by inserting <quote>or assembled</quote>
after <quote>constructed</quote>.</text>
</paragraph><paragraph id="IDA6DD3D1198A8497A988137E5FDD40C8C"><enum>(2)</enum><header>Conforming
amendment</header><text>Clause (iii) of section 170(e)(4)(B) is amended by
inserting <quote>or assembling</quote> after
<quote>construction</quote>.</text>
</paragraph></subsection><subsection id="ID68F83C0CA13A4078A4DA267228C33622"><enum>(b)</enum><header>Computer
technology and equipment for educational purposes</header>
<paragraph id="ID6C5A230A222A4E389701C562D4B42E3F"><enum>(1)</enum><header>In
general</header><text>Clause (ii) of section 170(e)(6)(B) is amended by
inserting <quote>or assembled</quote> after <quote>constructed</quote> and
<quote>or assembling</quote> after <quote>construction</quote>.</text>
</paragraph><paragraph id="IDC630D17D333C47B68661C50C692C45EF"><enum>(2)</enum><header>Special rule
extended</header><text>Section 170(e)(6)(G) is amended by striking
<quote>2005</quote> and inserting <quote>2007</quote>.</text>
</paragraph><paragraph id="ID99A052DF366A431A85B74701CC3ACAE9"><enum>(3)</enum><header>Conforming
amendments</header><text>Subparagraph (D) of section 170(e)(6) is amended by
inserting <quote>or assembled</quote> after <quote>constructed</quote> and
<quote>or assembling</quote> after <quote>construction</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID00955C9D86CF4543BF7EB7E1F86611BB"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2005.</text>
</subsection></section><section changed="added" id="HA83066C16C7645B09E8B67EAC2ECDCE2"><enum>834.</enum><header>Modification of
charitable deduction for contributions of book inventory</header>
<subsection id="HBA2F0A02EAD34B0EA8BB3B564F267AB8"><enum>(a)</enum><header>In general</header><text>Subparagraph
(D) of section 170(e)(3) (relating to special rule for certain contributions of
inventory and other property) is amended to read as follows:</text>
<quoted-block id="H07848F4F378A4E26B4EE7CE759AD0FCE">
<subparagraph id="H712433C04F0E4C9ABA8F2F4D2EB72E31"><enum>(D)</enum><header>Special rule for
contributions of book inventory for educational purposes</header>
<clause changed="added" id="H9FBD9B6CF6C143AAB720D9AECC93DA6F"><enum>(i)</enum><header>Contributions of
book inventory</header><text>In determining whether a qualified book
contribution is a qualified contribution, subparagraph (A) shall be applied
without regard to whether—</text>
<subclause id="H91A838D65ED54B7789E6A3500B160A3D"><enum>(I)</enum><text>the donee is an organization described in
the matter preceding clause (i) of subparagraph (A), and</text>
</subclause><subclause id="HAB283D57EE09443BB5CE63ABE1EE8F2D"><enum>(II)</enum><text>the property is to be used by the donee
solely for the care of the ill, the needy, or infants.</text>
</subclause></clause><clause changed="added" id="HF7912EF7694D4EC28A2CFF491407EEE9"><enum>(ii)</enum><header>Amount of
reduction</header><text>Notwithstanding subparagraph (B), the amount of the
reduction determined under paragraph (1)(A) shall not exceed the amount by
which the fair market value of the contributed property (as determined by the
taxpayer using a bona fide published market price for such book) exceeds twice
the basis of such property.</text>
</clause><clause changed="added" id="HCAE22C9B6F984431996530008D51E196"><enum>(iii)</enum><header>Qualified book
contribution</header><text>For purposes of this paragraph, the term
<term>qualified book contribution</term> means a charitable contribution of
books, but only if the requirements of clauses (iv) and (v) are met.</text>
</clause><clause changed="added" id="HDBB9AEDC62514245AE387168450A127C"><enum>(iv)</enum><header>Identity of
donee</header><text>The requirement of this clause is met if the contribution
is to an organization—</text>
<subclause id="H7117586DB9714DBF8F9A5D150AA4074B"><enum>(I)</enum><text>described in paragraph (6)(B)(i),
or</text>
</subclause><subclause id="HA13028B6B450428F9309A74796A75DE6"><enum>(II)</enum><text>described in section 501(c)(3) and
exempt from tax under section 501(a) (other than a private foundation, as
defined in section 509(a), which is not an operating foundation, as defined in
section 4942(j)(3)), which is organized primarily to make books available to
the general public at no cost or to operate a literacy program.</text>
</subclause></clause><clause changed="added" id="H1A44F81AD9864F9088B3EE0753D17B5C"><enum>(v)</enum><header>Certification by
donee</header><text>The requirement of this clause is met if, in addition to
the certifications required by subparagraph (A) (as modified by this
subparagraph), the donee certifies in writing that—</text>
<subclause id="H04ACC44DD94E4760B75B872B9AA68915"><enum>(I)</enum><text>the books are suitable, in terms of
currency, content, and quantity, for use in the donee’s educational programs,
and</text>
</subclause><subclause id="H3B9A27A140884016B5C020974D56DC33"><enum>(II)</enum><text>the donee will use the books in its
educational programs.</text>
</subclause></clause><clause changed="added" id="H037B3316F08D406583EA2270C9D2F58F"><enum>(vi)</enum><header>Bona fide
published market price</header><text>For purposes of this subparagraph, the
term <term>bona fide published market price</term> means, with respect to any
book, a price—</text>
<subclause id="H5DDC5FA2C3F64308A3746693E9FD4C41"><enum>(I)</enum><text>determined using the same printing and
edition,</text>
</subclause><subclause id="HD00737D75A8F4D3B85F2E47F44F5DA87"><enum>(II)</enum><text>determined in the usual market in which
such a book has been customarily sold by the taxpayer, and</text>
</subclause><subclause id="H96465F9621B242E9B52858883BD310FD"><enum>(III)</enum><text>for which the taxpayer can demonstrate
to the satisfaction of the Secretary that the taxpayer customarily sold such
books in arm’s length transactions within 7 years preceding the contribution of
such a book.</text>
</subclause></clause><clause changed="added" id="H3F9BED397B594D66800395ADA6D85215"><enum>(vii)</enum><header>Termination</header><text>This
subparagraph shall not apply to contributions made after December 31,
2007.</text>
</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="H133EAAF8FF2D4CD2AB0FFA09E1AAA8A2"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to
contributions made after December 31, 2005.</text>
</subsection></section></subtitle>