1.This Act may be cited as the
STEM Education Opportunity
Act
.
2.STEM qualified
higher education expenses
(a)Part VII of
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by
inserting after section 222 the following new section:
222A.STEM qualified
higher education expenses
(a)In the case of an
individual, there shall be allowed as a deduction an amount equal to the STEM
higher education expenses paid by the taxpayer during the taxable year.
(b)STEM higher
education expensesFor
purposes of this section, the term STEM higher education expense
means any expense of a type which is taken into account in determining the cost
of attendance (as defined in section 472 of the Higher Education Act of 1965
(20 U.S.C. 1087ll)) at an eligible educational institution with respect to the
attendance of an individual—
(1)at such
institution for the academic period for which the deduction under this section
is being determined,
(2)majoring in a course of study at such
institution leading to an associate degree or higher in—
(A)science,
technology, engineering, or mathematics (within the meaning of section
131(g)(4) of the Higher Education Act of 1965 (20 U.S.C. 1015(g)(4)), or
(B)education with a
focus on any area described in subparagraph (A), and
(3)who at all times during such period is
making satisfactory academic progress (as defined in section 668.34 of title
34, Code of Federal Regulations, or any successor regulation) in the pursuit of
such degree.
(c)Definition and
special rulesFor purposes of
this section—
(1)Eligible
educational institutionThe term eligible educational
institution has the meaning given the term institution of higher
education in section 102 of the Higher Education Act of 1965 (20 U.S.C.
1002).
(2)Room and board
included for students who are at least half-timeSubsection (a)
shall not apply to any costs of an individual for room and board while
attending an eligible educational institution, unless such individual is an
eligible individual (as defined in section 25A(b)(3)).
(3)Carryforward of
unused deductionIf for any taxable year the deduction allowable
under subsection (a) exceeds the taxpayer’s taxable income (determined without
regard to this section), the amount of STEM higher education expenses of the
taxpayer attributable to such excess shall be treated as STEM higher education
expenses paid by the taxpayer in the succeeding taxable year.
(4)Identification
requirementNo deduction shall be allowed under subsection (a) to
a taxpayer with respect to STEM higher education expenses of an individual
unless the taxpayer includes the name and taxpayer identification number of the
individual on the return of tax for the taxable year.
(5)Certain
prepayments allowedIf STEM higher education 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.
(6)Coordination
with other education incentives
(A)Denial of
deduction if other credit electedNo deduction shall be allowed under
subsection (a) for any taxable year with respect to the STEM higher education
expenses with respect to an individual if the taxpayer or any other person
elects to have section 25A apply with respect to such individual for such year
or if a credit is allowed under section 36D with respect to such individual for
such taxable year.
(B)Coordination
with exclusionsThe total amount of STEM higher education
expenses shall be reduced by the amount of such expenses taken into account in
determining any amount excluded under section 135, 529(c), or 530(d)(2). For
purposes of the preceding sentence, the amount taken into account in
determining the amount excluded under section 529(c)(1) shall not include that
portion of the distribution which represents a return of any contributions to
the plan.
(7)Adjustment for
certain scholarshipsRules similar to the rules of 25A(g)(2)
shall apply for purposes of this section.
(8)No
deduction shall be allowed under subsection (a) to any individual with respect
to whom a deduction under section 151 is allowable to another taxpayer for a
taxable year beginning in the calendar year in which such individual’s taxable
year begins.
(9)If the taxpayer is a nonresident alien individual for any
portion of the taxable year, this section shall only apply 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.
(d)This section shall not apply to taxable
years beginning more than 10 years after the date of the enactment of the STEM
Education Opportunity
Act.
.
(b)Deduction
allowed whether or not taxpayer itemizes other
deductionsSubsection (a) of section 62 of such Code is amended
by inserting after paragraph (21) the following new paragraph:
(22)STEM qualified
higher education expensesThe
deduction allowed by section
222A.
.
(c)The table of
sections for part VII of subchapter B of chapter 1 of such Code is amended by
inserting after the item relating to section 222 the following new item:
Sec. 222A. STEM qualified higher education
expenses.
.
(d)The amendments made by this section shall apply to payments
made in taxable years beginning after the date of the enactment of this
Act.
3.Credits for
certain contributions benefitting science, technology, engineering, and
mathematics education at the elementary and secondary school level
(a)Subpart D of part IV of subchapter A of chapter 1 of the
Internal Revenue Code of 1986 (relating to business related credits) is amended
by adding at the end the following new section:
45S.Contributions
benefitting science, technology, engineering, and mathematics education at the
elementary and secondary school level
(a)For purposes of
section 38, the elementary and secondary school STEM contributions credit
determined under this section for the taxable year is an amount equal to the
qualified STEM contributions made by the taxpayer during the taxable year to
one or more elementary or secondary schools.
(b)
(1)The amount of
qualified STEM contributions made to any school which may be taken into account
under this section by the taxpayer for the taxable year shall not exceed the
portion of the limitation under paragraph (2) which is allocated by such school
to the taxpayer for such year.
(2)The amount of qualified STEM contributions made to any
school which may be allocated under this section by the school to all taxpayers
for all taxable years shall not exceed $100,000.
(c)Qualified STEM
contributionsFor purposes of this section—
(1)The term qualified STEM contributions
means—
(A)STEM property
contributions,
(B)STEM service
contributions, and
(C)STEM student and
educator training contributions.
(2)STEM property
contributions
(A)The term STEM property contribution means
the amount which would (but for subsection (d)) be allowed as a deduction under
section 170 for a charitable contribution of STEM property if—
(i)the donee is an
elementary or secondary school,
(ii)substantially all of the use of the
property by the donee is within the United States for STEM education in any of
the grades K–12 for use during the school day or in after-school
programs,
(iii)the original use
of the property begins with the donee,
(iv)the property will
fit productively into the donee’s education plan,
(v)the property is
not transferred by the donee in exchange for money, other property, or
services, except for shipping, installation and transfer costs, and
(vi)the donee’s use
and disposition of the property will be in accordance with the provisions of
clauses (ii) through (v).
(B)The term STEM property means—
(i)computer equipment and software,
(ii)microscopes,
(iii)lab equipment,
including glassware, digital scales, and temperature measuring devices,
(iv)property used to
maintain, renovate, or improve laboratory facilities,
(v)STEM education curricula, and
(vi)whiteboards,
smartboards, cameras, and other relevant STEM education materials.
(3)STEM service
contributions
(A)The term STEM service contributions means
the amount paid or incurred during the taxable year to provide STEM services in
the United States for the exclusive benefit of students at an elementary or
secondary school but only if no charge is imposed for providing such
services.
(B)The term STEM
services
means—
(i)providing students the opportunity to
engage in hands-on technical equipment training in a STEM education field,
and
(ii)bringing experts in a STEM education field
into the classroom or after school programs for demonstrations, talks, or
mentoring exercises.
(4)STEM student and
educator training contributions
(A)The term STEM student and educator training
contributions means the amount paid or incurred during the taxable year
to provide STEM student and educator training services in the United States for
the exclusive benefit of students at an elementary or secondary school but only
if no charge is imposed for providing such services.
(B)STEM student and
educator training servicesThe term STEM student and
educator training services means—
(i)on-site technical equipment training in a
STEM education field,
(ii)field trips to
research or related facilities in a STEM education field,
(iii)student
internships or long term on-site training in a STEM education field, and
(iv)educator training
exercises in a STEM education field.
(5)The term STEM
education means education in the biological sciences, mathematics, earth
and physical sciences, computer and information science, engineering,
geosciences, and social and behavioral sciences.
(6)Elementary or
secondary school
(A)The term elementary or secondary school
means any school which provides elementary education or secondary education
(kindergarten through grade 12), as determined under State law.
(B)Such term includes consortia or other groupings of such
schools if all such schools in the consortia or grouping are located within the
same State.
(d)No deduction shall be allowed under this chapter for any
amount allowed as a credit under this
section.
.
(b)
(1)Section 38(b) of
such Code is amended by striking plus
at the end of paragraph
(35), by striking the period at the end of paragraph (36), and inserting
, plus
, and by adding at the end the following new
paragraph:
(37)the elementary
and secondary school STEM contributions credit determined under section
45S.
.
(2)The table of
sections for subpart D of part IV of subchapter A of chapter 1 of such Code is
amended by adding at the end the following new item:
Sec. 45S. Contributions benefitting
science, technology, engineering, and mathematics education at the elementary
and secondary school
level.
.
(c)The amendments made by this section shall apply to taxable
years beginning after the date of the enactment of this Act.
4.Not later than 5 years
after the date of the enactment of this Act, the Government Accountability
Office, in consultation with the Secretary of the Treasury, shall submit to
Congress a report detailing—
(1)the efficacy of
the STEM Education Opportunity Act in increasing higher education enrollment in
the fields of math, science, engineering, and technology, and
(2)any effect such
Act has had on the price of higher education tuition in such fields.