[Congressional Record Volume 143, Number 38 (Friday, March 21, 1997)]
[Extensions of Remarks]
[Page E556]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




  INTRODUCING THE 21ST CENTURY CLASSROOMS ACT FOR PRIVATE TECHNOLOGY 
                               INVESTMENT

                                 ______
                                 

                     HON. RANDY ``DUKE'' CUNNINGHAM

                             of california

                    in the house of representatives

                        Thursday, March 20, 1997

  Mr. CUNNINGHAM. Mr. Speaker, today, I introduce the 21st Century 
Classrooms Act for Private Technology Investment.
  Our children and our country's future depend upon the investment we 
make today in their classrooms. We know that advanced technology has 
improved America's economic competitiveness, transformed commerce and 
communications, and improved the quality of life for millions of 
Americans. By the year 2000, some 60 percent of American jobs will 
require technological skills.
  Unfortunately, the revolution in technology has not yet transformed 
the education of our children. Our classrooms lack the technology our 
children need to succeed. More big Government is not the answer; I 
believe that only by harnessing the power and ingenuity of private 
enterprise will we bring our classrooms into the 21st century.
  We can hasten that work through my new proposal: The 21st Century 
Classrooms Act for Private Technology Investment. It provides new, 
expanded incentives for businesses to invest equipment and cash to 
prepare 21st century classrooms. By taking advantage of employers' 
constant need to update computer systems, schools, and certain 
nonprofits can vastly multiply the technology available to our young 
people.
  First, it encourages employers to donate computer technology, 
equipment and software for K-12 education. It does this by expanding 
the incentive that encourages donations to scientific research 
institutions to also include donations to schools and nonprofits 
involved in K-12 education.
  Second, it provides employers a 110-percent tax credit for cash 
contributions to K-12 education to purchase computer technology, 
equipment and software. Every dollar contributed for this purpose 
reduces the employer's taxable income by $1.10, up to the usual limits.
  And third, and most importantly, these new incentives will increase 
private involvement in our local schools. That's something everybody 
agrees we need more of.
  Members of the House have already received a packet of information 
and the text of the 21st Century Classrooms Act. It is also available 
on my Internet website, http://www.house.gov/cunningham, on my ``What's 
New'' link.
  America is confronted with three possible solutions to the gap in 
technological literacy. First, we can do nothing, which has a huge cost 
in terms of our future competitiveness, our well-being as a nation, and 
the lives of our young people. Second, we can create more Federal 
programs and increase Government spending. Or third, we can harness the 
power and energy of private enterprise to create true 21st century 
classrooms, which is the motivation behind my 21st Century Classrooms 
Act.
  As a former teacher and coach, as one who once trained the Navy's Top 
Gun fighter pilots, and most of all as a father, I am tremendously 
excited by the potential of this initiative. I welcome Members' 
support.

        Section-by-Section Analysis 21st Century Classrooms Act

          (By Representative Randy ``Duke'' Cunningham, R-CA)


                         section 1: short title

       ``21st Century Classrooms Act for Private Technology 
     Investment.''


                    section 2: findings and purpose

       The purpose of the legislation is ``to direct the 
     innovation and energy of private enterprise to the education 
     of our young people, expand technological literacy, and bring 
     the education of our young people into the 21st Century.''


  section 3: Contributions for computer technology and equipment for 
                elementary or secondary school purposes

       This section establishes tax incentives for corporations to 
     donate equipment or cash to help being classrooms into the 
     21st Century.
       (a) Section 170(e) of the Internal Revenue Code of 1986 is 
     amended by creating a new special rule (6) for contributions 
     of computer technology and equipment for elementary or 
     secondary school purposes.
       (A) When a corporation contributes computer technology or 
     equipment to a qualified recipient, it may deduct from its 
     taxable income an amount to one-half the market value of the 
     donated material, not to exceed twice the cost of producing 
     it.
       (B) A qualified contribution is a charitable contribution 
     of computer technology or equipment by a corporation that is:
       (i) Made to a public or private elementary or secondary 
     school, or to a non-profit 501(c)(3) organization that is 
     ``organized primarily for purposes of supporting elementary 
     and secondary education;''
       (ii) Made within two years after the property to be donated 
     was either acquired or produced;
       (iii) To benefit K--12 education;
       (iv) Donated free of charge, except for shipping and 
     installation;
       (v) Productive to the recipient's education plan;
       (vi) Beneficial to K--12 educational and donated free 
     (except for shipping and installation), in the case of a 
     recipient that is a non-profit that is not a school.
       (C) A corporation's contribution of computer technology or 
     equipment to its own private foundation, particularly if the 
     foundation is not ``organized primarily for purposes of 
     elementary and secondary education,'' is eligible for the tax 
     deduction in (A) if:
       (i) The contribution is made within two years after the 
     property to be donated was either acquired or produced, and 
     donated free of charge, except for shipping and installation;
       (ii) The recipient foundation forwards the contribution to 
     an eligible school or non-profit within 30 days, and notifies 
     the corporate donor.
       (D) Applies a technical definition relating to the 
     determination of contributors' stake in the donated property.
       (E) Applies current law definitions of computer technology 
     and corporations into the Act.
       (b) Amends Section 170(a) of the Internal Revenue Code so 
     that corporate contributions of cash for schools and 
     qualified nonprofits to purchase computer technology and 
     equipment are provided a 110 percent credit against the 
     corporation's taxable income.
       (c) The Act takes effect at the beginning of the taxable 
     year following enactment.

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