[Congressional Record Volume 145, Number 162 (Tuesday, November 16, 1999)]
[Senate]
[Pages S14635-S14637]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD (for himself and Mr. Bennett):
  S. 1934. A bill to amend the Internal Revenue Code of 1986 to allow a 
tax credit for business-provided student education and training; to the 
Committee on Finance.


       THE BUSINESSES EDUCATING STUDENTS IN TECHNOLOGY (BEST) ACT

 Mr. DODD. Mr. President, today I rise to introduce legislation 
with my colleague from Utah, Senator Bennett, that addresses the 
serious shortage of students graduating from our nation's colleges and 
universities with technology-based education and skills.
  Technology is reshaping our world at a rapid pace. Competition to 
meet the needs, wants, and expectations of businesses and consumers has 
accelerated the rate of technological progress to a level inconceivable 
even a few years ago. Today, technology is playing an increasingly 
important role in the lives of every American and is a key ingredient 
in sustaining America's economic growth. It is the wellspring from 
which new businesses, high-wage jobs, and a rising quality of life will 
flow in the 21st century.
  This profound technological change, coupled with a period of 
sustained fiscal discipline in the federal government, has led to an 
unprecedented period of economic growth in our nation. For the first 
time in three decades, we are enjoying the prospect of budget surpluses 
that could total one trillion dollars over the next ten years. We have 
the lowest unemployment in 29 years. Inflation has fallen to its lowest 
rate in almost 30 years. Our economy has created 20 million new jobs in 
the last seven years.
  If we want to build on this progress, we must encourage people to 
develop and use emerging technologies. Technological progress has 
become the single most important determining factor in sustaining 
economic growth in our economy. It is estimated that technological 
innovation has accounted for as much as half the nation's long-term 
economic growth over the past 50 years and is expected to account for 
an even higher percentage in the next 50 years.
  And yet, there is growing evidence that we are not doing enough to 
prepare people to make the most of this emerging ``New Economy.'' The 
explosive growth in the technology industry has resulted in a growing 
shortage of qualified and educated workers with skills in computer 
science and other technologically advanced systems. For example, more 
than 350,000 information technology positions are currently vacant 
throughout the United States. That is an astounding statistic. While we 
have managed to erase the budget deficit, our nation faces a rising 
knowledge deficit that could just as readily impede economic growth.
  At this moment, there is little sign that this technology deficit 
will be erased. The supply of technology-savvy U.S. college graduates 
appears to be on the wane. In my home state of Connecticut, public and 
private colleges

[[Page S14636]]

combined produced only 297 computer and information science graduates 
in 1997, a 50 percent decline since 1987. The decline in students 
receiving engineering degrees is even more troubling. From 1989 to 
1999, the number of Connecticut students graduating in this field has 
decreased by 65 percent.
  This trend is not limited to any one state; it is nationwide in 
scope. The number of graduates receiving bachelor of science degrees in 
engineering has fallen to a 17-year low of 19.8 percent. Between 1990 
and 1996, the number of students obtaining high-tech degrees declined 
by 5 percent. These are clearly trends that must be reversed if we wish 
to continue building upon the technological achievements we have 
already made and ensure that our economy can continue to grow and 
create jobs to its full potential.

  Indeed, at large and mid-sized companies, there is already one 
vacancy for every 10 information technology jobs, and eight out of 10 
companies expect to hire information technology workers in the year 
ahead. Over the next decade, the Department of Commerce estimates that 
1.3 million new jobs will be created for systems analysts, computer 
engineers, and computer scientists. Moreover, by 2006, nearly half of 
the U.S. workforce will be employed by industries that are either 
producers or significant users of technology products and services.
  Clearly, we must do more to eliminate this shortage of 
technologically skilled workers. Some have suggested stop-gap measures 
such as extending more visas to foreign nationals who possess the 
skills most in demand here in the United States. More important than 
steps such as this are efforts to promote technology-based learning 
among American students. In Connecticut, many businesses are making 
such efforts. They are establishing scholarships, donating lab 
equipment and computers, planning curricula, and sending employees into 
colleges and universities to instruct and help prepare students for 
technology-based jobs.
  For instance, one Connecticut company, the Bayer Corporation, has 
committed $1.1 million to the University of New Haven over six years to 
help increase the effectiveness of its science curriculum. This 
partnership includes the donation of equipment, scholarships, 
internships, and other efforts that seek to engage students more 
actively in science and technology.
  Another positive example of cooperation between business and academic 
institutions in Connecticut is the support provided to the 
biotechnology program at Middlesex Community-Technical College by the 
Bristol Myers Squibb Pharmaceutical Research Institute and the Curagen 
Corporation. These companies, too, have established scholarships, 
donated lab equipment, and encouraged their research scientists to give 
lectures to students.
  While these partnerships do exist in Connecticut, and indeed, across 
the country, businesses and academic institutions should not be left to 
tackle alone the challenge of helping students obtain the technological 
learning and skills they need to succeed in the new century. The Senate 
has before it the opportunity to assist in this effort, to encourage 
the growth of innovation and education, and to address the shortage of 
skilled high-tech workers so vital to our continued technological and 
economic growth.
  That is why I am pleased to have the opportunity today to introduce 
legislation that will encourage businesses to form partnerships with 
institutions of higher learning in order to improve technology-based 
learning so that more of our nation's students will be better prepared 
to fill the jobs of the 21st century.
  The ``Businesses Educating Students in Technology,'' or BEST Act, 
will give a tax credit to any business that joins with a university, 
college, or community-technical school to support technology-based 
educational activities which are directly related to the purpose of 
that business. The legislation would allow businesses to claim a tax 
credit for 40 percent of these educational expenses, up to a maximum of 
$100,000 for any one company.
  Mr. President, it is my hope that this tax credit will provide the 
incentive for more of our country's corporate leaders to take a more 
active role in the technological education, training, and skill 
development of our nation's most valuable resource--its students.
  If businesses take advantage of this credit, they will help create a 
larger pool of skilled workers to draw from and, in turn, help our 
nation foster a better educated population that possesses the knowledge 
to succeed in the information-based economy of the future.
  I hope my colleagues join me and Senator Bennett in supporting this 
important legislation. Mr. President, I ask that the text of the 
legislation be printed in the Record.
  The bill follows:

                                S. 1934

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Businesses Educating 
     Students in Technology (BEST) Act''.

     SEC. 2. FINDINGS.

       Congress finds the following:
       (1) Technological progress is the single most important 
     determining factor in sustaining growth in the Nation's 
     economy. It is estimated that technological innovation has 
     accounted for as much as half the Nation's long-term economic 
     growth over the past 50 years and will account for an even 
     higher percentage in the next 50 years.
       (2) The number of jobs requiring technological expertise is 
     growing rapidly. For example, it is estimated that 1,300,000 
     new computer engineers, programmers, and systems analysts 
     will be needed over the next decade in the United States 
     economy. Yet, our Nation's computer science programs are only 
     graduating 25,000 students with bachelor's degrees yearly.
       (3) There are more than 350,000 information technology 
     positions currently unfilled throughout the United States, 
     and the number of students graduating from colleges with 
     computer science degrees has declined dramatically.
       (4) In order to help alleviate the shortage of graduates 
     with technology-based education and skills, businesses in a 
     number of States have formed partnerships with colleges, 
     universities, community-technical schools, and other 
     institutions of higher learning to give lectures, donate 
     equipment, plan curricula, and perform other activities 
     designed to help students acquire the skills and knowledge 
     needed to fill jobs in technology-based industries.
       (5) Congress should encourage these partnerships by 
     providing a tax credit to businesses that enter into them. 
     Such a tax credit will help students obtain the knowledge and 
     skills they need to obtain jobs in technology-based 
     industries which are among the best paying jobs being created 
     in the economy. The credit will also assist businesses in 
     their efforts to develop a more highly-skilled, better 
     trained workforce that can fill the technology jobs such 
     businesses are creating.

     SEC. 3. ALLOWANCE OF CREDIT FOR BUSINESS-PROVIDED STUDENT 
                   EDUCATION AND TRAINING.

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

     ``SEC. 45D. BUSINESS-PROVIDED STUDENT EDUCATION AND TRAINING.

       ``(a) Allowance of Credit.--For purposes of section 38, the 
     business-provided student education and training credit 
     determined under this section for the taxable year is an 
     amount equal to 40 percent of the qualified student education 
     and training expenditures of the taxpayer for such taxable 
     year.
       ``(b) Dollar Limitation.--The credit allowable under 
     subsection (a) for any taxable year shall not exceed 
     $100,000.
       ``(c) Definitions.--For purposes of this section--
       ``(1) Qualified student education and training 
     expenditure.--
       ``(A) In general.--The term `qualified student education 
     and training expenditure' means--
       ``(i) any amount paid or incurred by the taxpayer for the 
     qualified student education and training services provided by 
     any employee of the taxpayer, and
       ``(ii) the basis of the taxpayer in any tangible personal 
     property contributed by the taxpayer and used in connection 
     with the provision of any qualified student education and 
     training services.
       ``(B) Exclusion for amounts funded by grants, etc.--The 
     term `qualified student education and training expenditure' 
     shall not include any amount to the extent such amount is 
     funded by any grant, contract, or otherwise by another person 
     (or any governmental entity).
       ``(2) Qualified student education and training services.--
       ``(A) In general.--For purposes of paragraph (1), the term 
     `qualified student education and training services' means 
     technology-based education and training of students in any 
     eligible educational institution in employment skills related 
     to the trade or business of the taxpayer.
       ``(B) Technology-based education and training.--
       ``(i) In general.--For purposes of subparagraph (A), the 
     term `technology-based education and training' means 
     education and training in--

       ``(I) aerospace technology,

[[Page S14637]]

       ``(II) biotechnology,
       ``(III) electronic device technology,
       ``(IV) environmental technology,
       ``(V) medical device technology,
       ``(VI) computer technology or equipment, or
       ``(VII) advanced materials.

       ``(ii) Definitions.--For purposes of clause (i)--

       ``(I) Aerospace technology.--The term `aerospace 
     technology' means technology used in the manufacture, design, 
     maintenance, or servicing of aircraft, aircraft components, 
     or other aeronautics, including space craft or space craft 
     components.
       ``(II) Biotechnology.--The term `biotechnology' means 
     technology (including products and services) developed as the 
     result of the study of the functioning of biological systems 
     from the macro level to the molecular and sub-atomic levels.
       ``(III) Electronic device technology.--The term `electronic 
     device technology' means technology involving 
     microelectronics, semiconductors, electronic equipment, 
     instrumentation, radio frequency, microwave, millimeter 
     electronics, optical and optic-electrical devices, or data 
     and digital communications and imaging devices.
       ``(IV) Environmental technology.--The term `environmental 
     technology' means technology involving the assessment and 
     prevention of threats or damage to human health or the 
     environment, environmental cleanup, or the development of 
     alternative energy sources.
       ``(V) Medical device technology.--The term `medical device 
     technology' means technology involving any medical equipment 
     or product (other than a pharmaceutical product) which has 
     therapeutic value, diagnostic value, or both, and is 
     regulated by the Federal Food and Drug Administration.
       ``(VI) Computer technology or equipment.--The term 
     `computer technology or equipment' has the meaning given such 
     term in section 170(e)(6)(E)(i).
       ``(VII) Advanced materials.--The term `advanced materials' 
     means materials with engineered properties created through 
     the development of specialized processing and synthesis 
     technology, including ceramics, high value-added metals, 
     electronics materials, composites, polymers, and 
     biomaterials.

       ``(C) Eligible educational institution.--For purposes of 
     subparagraph (A), the term `eligible educational institution' 
     has the meaning given such term by section 529(e)(5).
       ``(d) Special Rules.--For purposes of this section--
       ``(1) Aggregation rules.--All persons which are treated as 
     a single employer under subsections (a) and (b) of section 52 
     shall be treated as a single taxpayer.
       ``(2) Pass-thru in the case of estates and trusts.--Under 
     regulations prescribed by the Secretary, rules similar to the 
     rules of subsection (d) of section 52 shall apply.
       ``(3) Allocation in the case of partnerships.--In the case 
     of partnerships, the credit shall be allocated among partners 
     under regulations prescribed by the Secretary.
       ``(f) No Double Benefit.--No deduction or credit shall be 
     allowed under any other provision of this chapter with 
     respect to any expenditure taken into account in computing 
     the amount of the credit determined under this section.''
       (b) Conforming Amendments.--
       (1) Section 38(b) of the Internal Revenue Code of 1986 is 
     amended--
       (A) by striking out ``plus'' at the end of paragraph (11),
       (B) by striking out the period at the end of paragraph 
     (12), and inserting a comma and ``plus'', and
       (C) by adding at the end the following:
       ``(13) the business-provided student education and training 
     credit determined under section 45D.''
       (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:

``Sec. 45D. Business-provided student education and training credit.''

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     1999.
                                 ______