To increase community service by students at risk of education failure and thereby reduce youth and gang violence.

Summary: At-Risk Youth Protection Act of 2006 - Authorizes the Secretary of Education to make grants to states for subgrants to alternative public schools or programs that serve the needs of students who are at risk of educational failure. Requires subgrantees to require their secondary school students to perform at least 100 hours of community service each school year and receive training or counseling on conflict resolution as a prerequisite to performing such service.

Amends the Internal Revenue Code of 1986 to provide a tax deduction to a business of: (1) $750 per 100 hours of community service provided by such a student through such business during the taxable year; and (2) $2,000 for each graduate of such alternative school or program who completes one year of employment with such business.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``At-Risk Youth Protection Act of 
2006''.

SEC. 2. GRANTS TO REDUCE YOUTH AND GANG VIOLENCE.

    (a) Grants to SEAs.--
            (1) In general.--The Secretary of Education may make grants 
        to State educational agencies for the purpose of making 
        subgrants to alternative schools or programs that agree to 
        implement a community service requirement and thereby reduce 
        youth and gang violence.
            (2) Application.--To seek a grant under this section, a 
        State educational agency shall submit an application to the 
        Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
    (b) Subgrants to Alternative Schools or Programs.--
            (1) In general.--A State educational agency receiving a 
        grant under this section shall use the grant to make subgrants 
        to alternative schools or programs that agree to require each 
        secondary school student enrolled in the school or program--
                    (A) to perform not less than 100 hours of community 
                service each school year; and
                    (B) to receive training or counseling on conflict 
                resolution as a prerequisite to performing such 
                community service.
            (2) Application.--To seek a subgrant under this section, an 
        alternative school or program shall submit an application to 
        the State educational agency at such time, in such manner, and 
        containing such information as the Secretary may require.
    (c) Definitions.--In this section:
            (1) The term ``alternative school or program'' means a 
        public school or program designed to address student needs that 
        typically cannot be met in regular schools because the student 
        is at risk of education failure (as indicated by poor grades, 
        truancy, disruptive behavior, pregnancy, or similar factors 
        associated with temporary or permanent withdrawal from school).
            (2) The term ``community service'' means a method of 
        service learning--
                    (A) under which the student involved learns and 
                develops through active participation in thoughtfully 
                organized and adult-supervised service that--
                            (i) is conducted in, and meets the needs 
                        of, a community;
                            (ii) is coordinated with the student's 
                        alternative school or program, and with the 
                        community; and
                            (iii) helps foster civic responsibility; 
                        and
                    (B) that--
                            (i) is integrated into and enhances the 
                        academic curriculum of the student, or the 
                        educational components of the community service 
                        program in which the student is enrolled; and
                            (ii) provides structured time for the 
                        student to reflect on the service experience.
            (3) The term ``institution of higher education'' has the 
        meaning given to that term in section 101 of the Higher 
        Education Act of 1965 (20 U.S.C. 1001).
            (4) The term ``secondary school'' has the meaning given to 
        that term in section 9101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801).
            (5) The term ``Secretary'' means the Secretary of 
        Education.
            (6) The term ``State educational agency'' has the meaning 
        given to that term in section 9101 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7801).

SEC. 3. COMMUNITY SERVICE DEDUCTION.

    (a) In General.--Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to itemized deductions for 
individuals and corporations) is amended by inserting after section 181 
the following new section:

``SEC. 182. COMMUNITY SERVICE DEDUCTION.

    ``(a) Allowance of Deduction.--In the case of a business, there 
shall be allowed as a deduction an amount determined in accordance with 
subsection (b).
    ``(b) Amount of Deduction.--In the case of a business, the amount 
determined under this subsection, with respect to a taxable year, is 
the sum of--
            ``(1) $750 per 100 hours of community service completed by 
        a qualified student through such business during such taxable 
        year, plus
            ``(2) $2,000 per qualified employee employed through such 
        business.
    ``(c) Dollar Limitation.--In the case of a business, the amount 
determined under subsection (b)(1), with respect to each qualified 
student completing hours of community service through such business, 
shall not exceed $1,500.
    ``(d) Definitions.--For purposes of this section, with respect to a 
taxable year--
            ``(1) Qualified student.--The term `qualified student' 
        means a student enrolled in an alternative school or program 
        (as defined in section 2(c) of the At-Risk Youth Protection Act 
        of 2006) who performs community service through a place of 
        business located not more than 20 miles from the location of 
        the student's alternative school or program in order to comply 
        with such school or program's community service requirement.
            ``(2) Qualified employee.--With respect to a business, the 
        term `qualified employee' means a graduate of an alternative 
        school or program (as defined in section 2(c) of the At-Risk 
        Youth Protection Act of 2006) who completes 1 year of 
        employment through such business during such taxable year.
            ``(3) Community service.--The term `community service' has 
        the meaning given to such term in section 2(c) of the At-Risk 
        Youth Protection Act of 2006.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary or appropriate to carry out the purposes of this 
section and to ensure that the community service completed by a 
qualified student through a business that is allowed a deduction under 
subsection (a) meets the requirements described in section 2(c) of the 
At-Risk Youth Protection Act of 2006.''.
    (b) Clerical Amendment.--The table of sections for part VI of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 181 the following new item:

``Sec. 182. Community service deduction.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.