[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
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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.--
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``(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--
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(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.''.
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