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Billno should always have and extension i.e. h1.ih

Public Private Vocational Partnership Act of 2003 (Introduced in House)

HR 2763 IH

108th CONGRESS

1st Session

H. R. 2763

To amend the Internal Revenue Code of 1986 to allow a business credit for donations for vocational educational purposes.

IN THE HOUSE OF REPRESENTATIVES

July 16, 2003

Mr. POMBO introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow a business credit for donations for vocational educational purposes.

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 `Public Private Vocational Partnership Act of 2003'.

SEC. 2. DONATIONS TO HIGH SCHOOLS AND COMMUNITY COLLEGES FOR VOCATIONAL EDUCATION PURPOSES.

(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 new section:

`SEC. 45G. DONATIONS TO HIGH SCHOOLS AND COMMUNITY COLLEGES FOR VOCATIONAL EDUCATION PURPOSES.

`(a) GENERAL RULE- For purposes of section 38, in the case of a corporation (as defined in section 170(e)(4)(D)), the vocational education donation credit determined under this section for the taxable year is an amount equal to the sum of--

`(1) 90 percent of the fair market value of qualified property donations made during the taxable year, plus

`(2) the aggregate of the intern credit amounts.

`(b) LIMITATIONS-

`(1) QUALIFIED PROPERTY DONATIONS- The amount allowed as a credit under subsection (a)(1) shall not exceed $50,000.

`(2) INTERN CREDIT AMOUNT-

`(A) IN GENERAL- The amount allowed as a credit under subsection (a)(2) with respect to a qualified intern shall be the amount equal to $100 multiplied by the number of months during the taxable year in which the intern was an employee of the taxpayer.

`(B) AGGREGATE PER INTERN CREDIT AMOUNTS- The aggregate amount allowed to the taxpayer as a credit under subsection (a)(2) for the taxable year shall not exceed $6,000.

`(c) QUALIFIED PROPERTY DONATIONS- For purposes of this section, the term `qualified property donations' means a charitable contribution (as defined in section 170(c)) of tangible personal property if--

`(1) the contribution is to an educational organization described in section 170(b)(1)(A)(ii) which is a high school or community college,

`(2) substantially all of the use of the property by the donee is for use within the United States for educational purposes that are related to the purpose or function of the donee,

`(3) the property is not transferred by the donee in exchange for money, other property, or services, except for shipping, installation and transfer costs,

`(4) the property will fit productively into the donee's education plan,

`(5) the donee's use and disposition of the property will be in accordance with the provisions of paragraphs (2), (3), and (4), and

`(6) the property meets such standards, if any, as the Secretary may prescribe by regulation to assure that the property meets minimum functionality and suitability standards for educational purposes.

`(d) QUALIFIED INTERN- For purposes of this section--

`(1) IN GENERAL- The term `qualified intern' means an individual--

`(A) who is enrolled full-time as a student in a high school or community college, and

`(B) who is employed for not more than 20 hours per week by the taxpayer as part of a vocational education course approved by such school or college.

`(2) HIGH SCHOOL- The term `high school' means any school which provides secondary education in grades 9 through 12, as determined under State law, and which offers a program of education in vocational education.

`(3) COMMUNITY COLLEGE- The term `community college' means a public or nonprofit private postsecondary regionally accredited institution that provides not less than a 2-year program of instruction that is acceptable for full credit toward a bachelor's degree at an accredited institution and whose highest degree offered is predominantly the associate degree.

`(e) AGGREGATION RULE- For purposes of subsection (b), all persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (n) or (o) of section 414 shall be treated as one person.

`(f) COORDINATION WITH SECTION 170(b)- The limitation which would (but for this subsection) apply under section 170(b) for any taxable year shall be reduced (but not below zero) by the fair market value of property taken into account in determining the credit allowed under subsection (a)(1) for such year.'.

(b) CREDIT TO BE PART OF GENERAL BUSINESS CREDIT-

(1) Subsection (b) of section 38 of such Code (relating to general business credit) is amended by striking `plus' at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting `, plus', and by adding at the end the following new paragraph:

`(16) in the case of a corporation (as defined in section 170(e)(4)(D)), the vocational education donation credit determined under section 45G(a).'.

(2) Section 39(d) of such Code (relating to transition rules) is amended by adding at the end the following new paragraph:

`(11) NO CARRYBACK OF VOCATIONAL EDUCATION DONATION CREDIT BEFORE EFFECTIVE DATE- No portion of the unused business credit for any taxable year which is attributable to the vocational education donation credit determined under section 45G may be carried to a taxable year beginning before January 1, 2003.'.

(c) DENIAL OF DOUBLE BENEFIT- Section 280C of such Code (relating to certain expenses for which credits are allowable) is amended by adding at the end the following new subsection:

`(d) VOCATIONAL EDUCATION DONATIONS- The deduction otherwise allowed for amounts taken into account under section 45G shall be reduced by the amount of the credit determined under section 45G(a) with respect to such amounts.'.

(d) CONFORMING AMENDMENT- The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 45F the following new item:

`Sec. 45G. Donations to high schools and community colleges for vocational education purposes.'.

(e) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2002.

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