[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 833 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 833

       To make the United States competitive in a global economy.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 9, 2007

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

_______________________________________________________________________

                                 A BILL


 
       To make the United States competitive in a global economy.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    (a) In General.--This Act may be cited as the ``Competitiveness 
through Education, Technology, and Enterprise Act of 2007'' or the 
``COMPETE Act of 2007''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title.
              TITLE I--RESEARCH AND DEVELOPMENT INCENTIVES

Sec. 101. Permanent extension of research credit.
               TITLE II--WORKFORCE DEVELOPMENT INCENTIVES

Sec. 201. Credit for information and communications technology 
                            education and training program expenses.
Sec. 202. Eligible educational institution.
Sec. 203. SBIR-STEM Workforce Development Grant Pilot Program.
                TITLE III--PUBLIC PARTNERSHIP PROVISIONS

Sec. 301. Alternative percentage limitation for corporate charitable 
                            contributions to the mathematics and 
                            science partnership program.
                     TITLE IV--EDUCATION PROVISIONS

Sec. 401. Federal Pell Grants.
Sec. 402. Matching funds program to promote American competitiveness 
                            through graduate education.
Sec. 403. Mathematics and science partnership bonus grants.

              TITLE I--RESEARCH AND DEVELOPMENT INCENTIVES

SEC. 101. PERMANENT EXTENSION OF RESEARCH CREDIT.

    (a) In General.--Section 41 of the Internal Revenue Code of 1986 is 
amended by striking subsection (h).
    (b) Conforming Amendment.--Paragraph (1) of section 45C(b) of such 
Code is amended by striking subparagraph (D).
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred after the date of the enactment of 
this Act.

               TITLE II--WORKFORCE DEVELOPMENT INCENTIVES

SEC. 201. CREDIT FOR INFORMATION AND COMMUNICATIONS TECHNOLOGY 
              EDUCATION AND TRAINING PROGRAM EXPENSES.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following:

``SEC. 30D. INFORMATION AND COMMUNICATIONS TECHNOLOGY EDUCATION AND 
              TRAINING PROGRAM EXPENSES.

    ``(a) Allowance of Credit.--
            ``(1) In general.--There shall be allowed as a credit 
        against the tax imposed by this chapter for the taxable year an 
        amount equal to 50 percent of information and communications 
        technology education and training program expenses paid or 
        incurred by the taxpayer for the benefit of--
                    ``(A) in the case of a taxpayer engaged in a trade 
                or business, an employee of the taxpayer, or
                    ``(B) in the case of a taxpayer who is an 
                individual not so engaged, such individual.
            ``(2) Coordination of credits.--Credit shall be allowable 
        to the employer with respect to an employee only to the extent 
        that the employee assigns some or all of the limitation 
        applicable to such employee under subsection (b) to such 
        employer.
    ``(b) Limitations.--
            ``(1) In general.--The amount of expenses with respect to 
        any individual which may be taken into account under subsection 
        (a) for the taxable year shall not exceed $4,000.
            ``(2) Increase in credit amount for participation in 
        certain programs and for certain individuals.--Paragraph (1) 
        shall be applied by substituting `$5,000' for `$4,000' in the 
        case of expenses--
                    ``(A) with respect to a program operated--
                            ``(i) by an employer who has 200 or fewer 
                        employees for each business day in each of 20 
                        or more calendar weeks in the current or 
                        preceding calendar year,
                            ``(ii) in an empowerment zone or enterprise 
                        community designated under part I of subchapter 
                        U or a renewal community designated under part 
                        I of subchapter X,
                            ``(iii) in a school district in which at 
                        least 50 percent of the students attending 
                        schools in such district are eligible for free 
                        or reduced-cost lunches under the school lunch 
                        program established under the Richard B. 
                        Russell National School Lunch Act,
                            ``(iv) in an area designated as a disaster 
                        area by the Secretary of Agriculture under 
                        section 321 of the Consolidated Farm and Rural 
                        Development Act or by the President under the 
                        Robert T. Stafford Disaster Relief and 
                        Emergency Assistance Act in the taxable year or 
                        the 4 preceding taxable years,
                            ``(v) in a rural enterprise community 
                        designated under section 766 of the 
                        Agriculture, Rural Development, Food and Drug 
                        Administration, and Related Agencies 
                        Appropriations Act, 1999 (112 Stat. 2681-37),
                            ``(vi) in an area designated by the 
                        Secretary of Agriculture as a Rural Economic 
                        Area Partnership Zone, or
                            ``(vii) in an area over which an Indian 
                        tribal government (as defined in section 
                        7701(a)(40)) has jurisdiction, or
                    ``(B) in the case of an individual with a 
                disability.
    ``(c) Information Technology Education and Training Program 
Expenses.--For purposes of this section--
            ``(1) In general.--The term `information technology 
        education and training program expenses' means expenses paid or 
        incurred by reason of the participation of the taxpayer (or any 
        employee of the taxpayer) in any information and communications 
        technology education and training program. Such expenses shall 
        include expenses paid in connection with--
                    ``(A) course work,
                    ``(B) certification testing,
                    ``(C) programs carried out under the Act of August 
                16, 1937 (50 Stat. 664, chapter 663; 29 U.S.C. 50 et 
                seq.) which are registered by the Department of Labor, 
                and
                    ``(D) other expenses that are essential to 
                assessing skill acquisition.
            ``(2) Information technology education and training 
        program.--The term `information technology education and 
        training program' means a training program in information and 
        communications technology workplace disciplines or other skill 
        sets which is provided in the United States by an accredited 
        college, university, private career school, postsecondary 
        educational institution, a commercial information technology 
        provider, or an employer-owned information technology training 
        organization.
            ``(3) Commercial information technology training 
        provider.--The term `commercial information technology training 
        provider' means a private sector organization providing an 
        information and communications technology education and 
        training program.
            ``(4) Employer-owned information technology training 
        organization.--The term `employer-owned information technology 
        training organization' means a private sector organization that 
        provides information technology training to its employees using 
        internal training development and delivery personnel. The 
        training programs must use industry-recognized training 
        disciplines and evaluation methods, comparable to institutional 
        and commercial training providers.
    ``(d) Denial of Double Benefit.--
            ``(1) Disallowance of other credits and deductions.--No 
        deduction or credit shall be allowed under any other provision 
        of this chapter for expenses taken into account in determining 
        the credit under this section.
            ``(2) Reduction for hope and lifetime learning credits.--
        The amount taken into account under subsection (a) shall be 
        reduced by the information technology education and training 
        program expenses taken into account in determining the credits 
        under section 25A.
    ``(e) Certain Rules Made Applicable.--For purposes of this section, 
rules similar to the rules of section 45A(e)(2) and subsections (c), 
(d), and (e) of section 52 shall apply.
    ``(f) Application With Other Credits.--The credit allowed by 
subsection (a) for any taxable year shall not exceed the excess (if 
any) of--
            ``(1) the regular tax for the taxable year reduced by the 
        sum of the credits allowable under the subpart A and the 
        previous sections of this subpart, over
            ``(2) the tentative minimum tax for the taxable year.''.
    (b) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following:

``Sec. 30D. Information and communications technology education and 
                            training program expenses.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred in taxable years beginning after 
December 31, 2006.

SEC. 202. ELIGIBLE EDUCATIONAL INSTITUTION.

    (a) In General.--Section 25A(f)(2) of the Internal Revenue Code of 
1986 (relating to eligible educational institution) is amended to read 
as follows:
            ``(2) Eligible educational institution.--The term `eligible 
        educational institution' means--
                    ``(A) an institution--
                            ``(i) which is described in section 101(b) 
                        or 102(a) of the Higher Education Act of 1965, 
                        and
                            ``(ii) which is eligible to participate in 
                        a program under title IV of such Act, or
                    ``(B) a commercial information and communications 
                technology training provider (as defined in section 
                30D(c)(3)).''.
    (b) Conforming Amendment.--The second sentence of section 221(d)(2) 
of the Internal Revenue Code of 1986 is amended by striking ``section 
25A(f)(2)'' and inserting ``section 25A(f)(2)(A)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.

SEC. 203. SBIR-STEM WORKFORCE DEVELOPMENT GRANT PILOT PROGRAM.

    (a) Definitions.--In this section--
            (1) the term ``Administrator'' means the Administrator of 
        the Small Business Administration;
            (2) the term ``eligible entity'' means a grantee under the 
        SBIR Program that provides an internship program for STEM 
        college students;
            (3) the terms ``Phase I'' and ``Phase II'' mean Phase I and 
        Phase II grants under the SBIR Program, respectively;
            (4) the term ``pilot program'' means the SBIR-STEM 
        Workforce Development Grant Pilot Program established under 
        subsection (b);
            (5) the term ``SBIR Program'' has the meaning given that 
        term in section 9(e) of the Small Business Act (15 U.S.C. 
        638(e)); and
            (6) the term ``STEM college student'' means a college 
        student in the field of science, technology, engineering, or 
        math.
    (b) Pilot Program Established.--From amounts made available to 
carry out this section, the Administrator shall establish an SBIR-STEM 
Workforce Development Grant Pilot Program to encourage the business 
community to provide workforce development opportunities to STEM 
college students, by providing an SBIR bonus grant to eligible 
entities.
    (c) Awards.--A bonus grant to an eligible entity under the pilot 
program shall be in an amount equal to 10 percent of either a Phase I 
or Phase II grant, as applicable, with a total award maximum of not 
more than $10,000 per year.
    (d)  Evaluation.--Following the fifth year of funding under this 
section, the Administrator shall submit a report to Congress on the 
results of the pilot program.
    (e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $1,000,000 for fiscal year 2007;
            (2) $1,000,000 for fiscal year 2008;
            (3) $1,000,000 for fiscal year 2009;
            (4) $1,000,000 for fiscal year 2010; and
            (5) $1,000,000 for fiscal year 2011.

                TITLE III--PUBLIC PARTNERSHIP PROVISIONS

SEC. 301. ALTERNATIVE PERCENTAGE LIMITATION FOR CORPORATE CHARITABLE 
              CONTRIBUTIONS TO THE MATHEMATICS AND SCIENCE PARTNERSHIP 
              PROGRAM.

    (a) In General.--Section 170(b) of the Internal Revenue Code of 
1986 (related to percentage limitations) is amended by adding at the 
end the following new paragraph:
            ``(3) Special rule for corporate contributions to the 
        mathematics and science partnership program.--
                    ``(A) In general.--In the case of a corporation 
                which makes an eligible mathematics and science 
                contribution--
                            ``(i) the limitation under paragraph (2) 
                        shall apply separately with respect to all such 
                        contributions and all other charitable 
                        contributions, and
                            ``(ii) paragraph (2) shall be applied with 
                        respect to all eligible mathematics and science 
                        contributions by substituting `15 percent' for 
                        `10 percent'.
                    ``(B) Eligible mathematics and science 
                contribution.--
                            ``(i) In general.--For purposes of this 
                        paragraph, the term `eligible mathematics and 
                        science contribution' means a charitable 
                        contribution (other than a contribution of used 
                        equipment) to a qualified partnership for the 
                        purpose of an activity described in section 
                        2202(c) of the Elementary and Secondary 
                        Education Act of 1965.
                            ``(ii) Qualified partnership.--The term 
                        `qualified partnership' means an eligible 
                        partnership (within the meaning of section 
                        2201(b)(1) of the Elementary and Secondary 
                        Education Act of 1965), but only to the extent 
                        that such partnership does not include a person 
                        other than a person described in paragraph 
                        (1)(A).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after the date of the enactment of this Act.

                     TITLE IV--EDUCATION PROVISIONS

SEC. 401. FEDERAL PELL GRANTS.

    It is the sense of the Senate that the maximum Federal Pell Grant 
should be increased to--
            (1) $4,600 for academic year 2008-2009;
            (2) $4,800 for academic year 2009-2010;
            (3) $5,000 for academic year 2010-2011;
            (4) $5,200 for academic year 2011-2012; and
            (5) $5,400 for academic year 2012-2013.

SEC. 402. MATCHING FUNDS PROGRAM TO PROMOTE AMERICAN COMPETITIVENESS 
              THROUGH GRADUATE EDUCATION.

    (a) Purpose.--The purpose of this section is to promote American 
economic competitiveness and job creation by--
            (1) assisting graduate students studying the sciences, 
        technology, engineering, and mathematics;
            (2) advancing education in the sciences, technology, 
        engineering, and mathematics;
            (3) stimulating greater links between private industry and 
        graduate education; and
            (4) enabling the Office of Science of the Department of 
        Energy to establish a matching funds program for eligible 
        institutions of higher education.
    (b) Definitions.--In this section:
            (1) Eligible institution of higher education.--The term 
        ``eligible institution of higher education'' means an 
        institution of higher education, as defined in section 101(a) 
        of the Higher Education Act of 1965 (20 U.S.C. 1001), that 
        offers an established program of post-baccalaureate study 
        leading to a graduate degree in the sciences, technology, 
        engineering, or mathematics.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (c) Grants.--
            (1) Grants authorized.--The Secretary, acting through the 
        Undersecretary for Energy, Science, and Environment, is 
        authorized to award grants, on a competitive basis, to eligible 
        institutions of higher education to enable the eligible 
        institutions of higher education to carry out the authorized 
        activities described in subsection (e).
            (2) Matching funds required.--In order to receive a grant 
        under this subsection, an eligible institution of higher 
        education shall agree to provide matching funds, toward the 
        cost of the authorized activities to be assisted under the 
        grant, in an amount equal to 25 percent of the funds received 
        under the grant.
            (3) Award considerations.--In awarding grants under this 
        subsection, the Secretary shall take into consideration--
                    (A) the demonstrated commitment of the eligible 
                institution of higher education to providing matching 
                funds (including tuition remission, tuition waivers, 
                and other types of institutional support) toward the 
                cost of the authorized activities to be assisted under 
                the grant;
                    (B) the demonstrated capacity of the eligible 
                institution of higher education to raise matching funds 
                from private sources;
                    (C) the demonstrated ability of the eligible 
                institution of higher education to work with private 
                corporations and organizations to promote economic 
                competitiveness and job creation;
                    (D) the demonstrated ability of the eligible 
                institution of higher education to increase the number 
                of graduates of the eligible institution of higher 
                education's graduate programs in the sciences, 
                technology, engineering, or mathematics with the 
                interdisciplinary background and the technical, 
                professional, and personal skills needed to contribute 
                to American competitiveness and job creation in the 
                future;
                    (E) the potential for the grant assistance to 
                increase the number of graduates of the eligible 
                institution of higher education's graduate programs in 
                the sciences, technology, engineering, or mathematics; 
                and
                    (F) the demonstrated track record of the eligible 
                institution of higher education in outreach and 
                mentoring activities that have the expressed purpose of 
                recruiting and retaining women, recognized minorities, 
                and individuals with disabilities in the sciences, 
                technology, engineering, or mathematics.
            (4) Amount.--The Secretary shall award each grant under 
        this subsection in an amount that is not more than $1,000,000 
        for each fiscal year.
            (5) Equitable distribution.--In awarding grants under this 
        subsection, the Secretary shall ensure--
                    (A) an equitable geographic distribution of the 
                grants; and
                    (B) an equitable distribution of the grants among 
                public and private eligible institutions of higher 
                education.
    (d) Applications.--Each eligible institution of higher education 
desiring a grant under this section shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information and assurances as the Secretary may require. Each such 
application shall describe--
            (1) the authorized activities under subsection (e) for 
        which assistance is sought;
            (2) the source and amount of the matching funds to be 
        provided; and
            (3) the amount of funds raised by the eligible institution 
        of higher education from private sources that will be allocated 
        and spent to carry out the authorized activities described in 
        subsection (e).
    (e) Authorized Activities; Agreement.--Each eligible institution of 
higher education desiring a grant under this section shall enter into a 
written agreement with the Secretary under which the eligible 
institution of higher education agrees to use all of the grant funds--
            (1) to provide stipends or other financial assistance (such 
        as tuition assistance and related expenses) for students who 
        are enrolled in graduate programs in the sciences, technology, 
        engineering, or mathematics at the eligible institution of 
        higher education, as described in the application submitted 
        under subsection (d); and
            (2) to support outreach and mentoring activities to 
        increase the participation of underrepresented groups in the 
        sciences, technology, engineering, or mathematics at all levels 
        or any level of education, including elementary, secondary, and 
        post-secondary education, as described in the application 
        submitted under subsection (d).
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $50,000,000 for fiscal year 2008;
            (2) $60,000,000 for fiscal year 2009;
            (3) $70,000,000 for fiscal year 2010;
            (4) $80,000,000 for fiscal year 2011; and
            (5) $90,000,000 for fiscal year 2012.

SEC. 403. MATHEMATICS AND SCIENCE PARTNERSHIP BONUS GRANTS.

    Part B of title II of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6661 et seq.) is amended by adding at the end the 
following:

``SEC. 2204. MATHEMATICS AND SCIENCE PARTNERSHIP BONUS GRANTS.

    ``(a) In General.--From amounts appropriated under subsection (d), 
the Secretary shall award a grant--
            ``(1) for each of the school years 2007-2008 through 2016-
        2017, to each of the 5 elementary schools and each of the 5 
        secondary schools in each State, whose students demonstrate the 
        most improvement in mathematics, as measured by the improvement 
        in the students' average score on the State's assessments in 
        mathematics for the school year for which the grant is awarded, 
        as compared to the school year preceding the school year for 
        which the grant is awarded; and
            ``(2) for each of the school years 2011-2012 through 2016-
        2017, to each of the 5 elementary schools and each of the 5 
        secondary schools in each State, whose students demonstrate the 
        most improvement in science, as measured by the improvement in 
        the students' average score on the State's assessments in 
        science for the school year for which the grant is awarded, as 
        compared to the school year preceding the school year for which 
        the grant is awarded.
    ``(b) Grant Amount.--The amount of each grant awarded under this 
section shall be $500,000.
    ``(c) Applicability.--Sections 2201, 2202, and 2203 shall not apply 
to this section.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $130,000,000 for each of the 
fiscal years 2008 through 2011, and $260,000,000 for each of the fiscal 
years 2012 through 2017.''.
                                 <all>