[Congressional Record Volume 153, Number 41 (Friday, March 9, 2007)]
[Senate]
[Pages S2970-S2973]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. COLEMAN (for himself and Mr. Pryor):
  S. 833. A bill to make the United States competitive in a global 
economy; to the Committee on Finance.
  Mr. COLEMAN. Mr. President, I rise to introduce the Competitiveness 
Through Education, Technology, and Enterprise Act otherwise known as 
the COMPETE Act. The bill I introduce today is similar to legislation I 
have introduced in the 109th Congress. I am very pleased to be joined 
by my very good friend and colleague, Senator Mark Pryor, who shares my 
commitment to keeping the U. S. competitive not just for today but for 
tomorrow as well.
  Earlier this week Microsoft's Bill Gates came before the Health, 
Education, Labor and Pensions Committee to talk about keeping our 
country competitive. He said that ``the U.S. cannot maintain its 
economic leadership unless our workforce consists of people who have 
the knowledge and skills needed to drive innovation.'' Moreover he said 
that ``we simply cannot sustain an economy based on innovation unless 
our citizens are educated in math, science and engineering.''
  My bill is inspired by the same line of thinking. The COMPETE Act is 
based on three simple, fundamental ideas: 1. The U.S. needs to remain a 
leader when it comes to technology and innovation; 2. We must prepare 
our future workforce and ``up-skill'' our current workforce for our 
increasingly global and information technology driven economy; and 3. 
We must better utilize existing private-public partnerships to achieve 
these goals.
  The challenges we face are stark especially when it comes to the 
future competitiveness of our workforce. Today, China graduates four 
times as many engineers as the U.S. while the small nation of South 
Korea graduates just as many as we do. In three short years, Asia will 
be home to more than 90 percent of the world's scientists and 
engineers.
  According to a recent poll, 84 percent of middle school students 
preferred to eat their vegetables than do their math homework. As Tom 
Friedman wrote in his book the World is Flat when he was growing up as 
a kid his mother used to tell him to eat all his vegetables because 
kids in China were starving. Today, his mother would say do your 
homework because the kids in China are starving for our jobs.
  As if this were not enough, we also need to concern ourselves with 
the coming retirement wave of high-skilled workers in the fields of 
engineering, science, technology and math. According to the National 
Science Foundation, about a third of American scientists and engineers 
are over 50 years old.
  To encourage and promote our students to seek out these types of 
careers we need to improve the performance of students in science and 
math. Several reports have indicated that U.S. students do not perform 
at the level of their international counterparts in math and science. 
Our fourth graders compare fairly well internationally, but by high 
school American students slip to 24th place out of 29 developing 
nations in math literacy and problem solving.
  We must make sure that our educational system is up to the task in 
preparing our future workforce. To reward elementary and secondary 
schools for a job well done, COMPETE provides bonus grants to high 
performing elementary and secondary schools that show the greatest 
improvement in their State assessments in math and science. COMPETE 
also increases the alternative percentage limitation for corporate 
charitable contributions to the mathematics and science partnership 
program in order to encourage greater support from the corporate world.

  To help ensure that more students receive a higher education and have 
the skills necessary to compete in today's global economy COMPETE puts 
the Senate on record in support of raising the maximum Pell Grant to 
$5,400.
  In addition to undergraduate education, COMPETE also establishes a 
matching grant program where Federal and private resources will be used 
to help graduate students in science, technology, engineering and 
mathematics meet the cost of getting a graduate degree. This grant 
program will also support outreach and mentoring activities to increase 
the participation of underrepresented groups in these fields at every 
level of education.
  To keep today's workforce competitive and prepare our future 
workforce, COMPETE creates a tax credit to help ``up-skill'' America's 
workers so that

[[Page S2971]]

they can compete in today's increasingly information and technology-
driven global economy. COMPETE also creates a workforce development 
grant pilot program to encourage leading innovative small businesses to 
provide short-term workforce training opportunities for college 
students who major in the fields of science, technology, engineering 
and math. Our employers need more than just raw materials. They need a 
highly skilled workforce that provides extra value to their products 
and services.
  Finally in order to ensure our leadership in innovation, COMPETE 
makes the research and development credit permanent. We must look at 
ways to ensure the ability of American companies to stay at the 
forefront of the technological revolution. Temporarily extending the 
R&D tax credit makes it difficult for our businesses to undertake 
research and development activities necessary for our continued long-
term competitiveness in the global economy.
  Earlier this week, bipartisan comprehensive competitiveness 
legislation known as the America Competes Act was introduced. I am a 
proud original cosponsor of this bill which seeks to respond to the 
recommendations made by the National Academies' ``Rising Above the 
Gathering Storm'' report and the Council on Competitiveness'' 
``Innovate America'' report.
  In an effort to contribute to this important discussion I am 
introducing COMPETE, which complements the America Competes Act through 
its emphasis on innovation and workforce development and public-private 
education partnership in the areas of science, technology, engineering 
and math.
  We must realize the fact that our competitiveness relative to the 
global economy is in real danger. This situation is smoldering--it's 
not a five-alarm fire yet--I just hope we don't act too late. If you 
throw a frog into boiling water, it jumps out. If you throw a frog into 
warm water, it will sit there comfortably until its internal organs 
overheat and it dies. Let's not let ourselves wake up in a few years to 
see that our global competitiveness has slipped away.
  I am committed to working on this issue now. While the challenges to 
our leadership in the global economy are indeed significant, I am 
confident and optimistic that we will successfully address challenges 
to our leadership in the global economy.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 833

       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.--

[[Page S2972]]

       ``(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--

[[Page S2973]]

       (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.''.
                                 ______