STEM Education Opportunity Act

Summary: STEM Education Opportunity Act This bill amends the Internal Revenue Code to allow: (1) individual taxpayers a deduction from gross income for STEM (i.e., science, technology, engineering, and mathematics) higher education expenses; and (2) a business-related tax credit for contributions of STEM&nbsp;property (e.g., computer equipment&nbsp;and software, microscopes, and lab equipment), services, and training&nbsp;made to an elementary or secondary school&nbsp;to promote education in the biological sciences, mathematics, earth and physical sciences, computer and information science, engineering, geosciences, and social and behavioral sciences. The bill defines "STEM higher education expenses" to include any expenses incurred by an individual attending an institution of higher education who is majoring in science, technology, engineering, or mathematics. The Government Accountability Office must submit to Congress a report detailing: (1) the efficacy of this Act in increasing higher education enrollment in the fields of mathematics, science, engineering, and technology; and (2) any effect&nbsp;this Act has had on the price of higher education tuition in such fields. 

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``STEM Education Opportunity Act''.

SEC. 2. DEDUCTION FOR STEM QUALIFIED HIGHER EDUCATION EXPENSES.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 222 
the following new section:

``SEC. 222A. STEM QUALIFIED HIGHER EDUCATION EXPENSES.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction an amount equal to the STEM higher education 
expenses paid by the taxpayer during the taxable year.
    ``(b) STEM Higher Education Expenses.--For purposes of this 
section, the term `STEM higher education expense' means any expense of 
a type which is taken into account in determining the cost of 
attendance (as defined in section 472 of the Higher Education Act of 
1965 (20 U.S.C. 1087ll)) at an eligible educational institution with 
respect to the attendance of an individual--
            ``(1) at such institution for the academic period for which 
        the deduction under this section is being determined,
            ``(2) majoring in a course of study at such institution 
        leading to an associate degree or higher in--
                    ``(A) science, technology, engineering, or 
                mathematics (within the meaning of section 131(g)(4) of 
                the Higher Education Act of 1965 (20 U.S.C. 
                1015(g)(4)), or
                    ``(B) education with a focus on any area described 
                in subparagraph (A), and
            ``(3) who at all times during such period is making 
        satisfactory academic progress (as defined in section 668.34 of 
        title 34, Code of Federal Regulations, or any successor 
        regulation) in the pursuit of such degree.
    ``(c) Definition and Special Rules.--For purposes of this section--
            ``(1) Eligible educational institution.--The term `eligible 
        educational institution' has the meaning given the term 
        `institution of higher education' in section 102 of the Higher 
        Education Act of 1965 (20 U.S.C. 1002).
            ``(2) Room and board included for students who are at least 
        half-time.--Subsection (a) shall not apply to any costs of an 
        individual for room and board while attending an eligible 
        educational institution, unless such individual is an eligible 
        individual (as defined in section 25A(b)(3)).
            ``(3) Carryforward of unused deduction.--If for any taxable 
        year the deduction allowable under subsection (a) exceeds the 
        taxpayer's taxable income (determined without regard to this 
        section), the amount of STEM higher education expenses of the 
        taxpayer attributable to such excess shall be treated as STEM 
        higher education expenses paid by the taxpayer in the 
        succeeding taxable year.
            ``(4) Identification requirement.--No deduction shall be 
        allowed under subsection (a) to a taxpayer with respect to STEM 
        higher education expenses of an individual unless the taxpayer 
        includes the name and taxpayer identification number of the 
        individual on the return of tax for the taxable year.
            ``(5) Certain prepayments allowed.--If STEM higher 
        education expenses are paid by the taxpayer during a taxable 
        year for an academic period which begins during the first 3 
        months following such taxable year, such academic period shall 
        be treated for purposes of this section as beginning during 
        such taxable year.
            ``(6) Coordination with other education incentives.--
                    ``(A) Denial of deduction if other credit 
                elected.--No deduction shall be allowed under 
                subsection (a) for any taxable year with respect to the 
                STEM higher education expenses with respect to an 
                individual if the taxpayer or any other person elects 
                to have section 25A apply with respect to such 
                individual for such year.
                    ``(B) Coordination with exclusions.--The total 
                amount of STEM higher education expenses shall be 
                reduced by the amount of such expenses taken into 
                account in determining any amount excluded under 
                section 135, 529(c), or 530(d)(2). For purposes of the 
                preceding sentence, the amount taken into account in 
                determining the amount excluded under section 529(c)(1) 
                shall not include that portion of the distribution 
                which represents a return of any contributions to the 
                plan.
            ``(7) Adjustment for certain scholarships.--Rules similar 
        to the rules of 25A(g)(2) shall apply for purposes of this 
        section.
            ``(8) Dependents.--No deduction shall be allowed under 
        subsection (a) to any individual with respect to whom a 
        deduction under section 151 is allowable to another taxpayer 
        for a taxable year beginning in the calendar year in which such 
        individual's taxable year begins.
            ``(9) Nonresident aliens.--If the taxpayer is a nonresident 
        alien individual for any portion of the taxable year, this 
        section shall only apply if such individual is treated as a 
        resident alien of the United States for purposes of this 
        chapter by reason of an election under subsection (g) or (h) of 
        section 6013.
    ``(d) Termination.--This section shall not apply to taxable years 
beginning more than 10 years after the date of the enactment of the 
STEM Education Opportunity Act.''.
    (b) Deduction Allowed Whether or Not Taxpayer Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
inserting after paragraph (21) the following new paragraph:
            ``(22) STEM qualified higher education expenses.--The 
        deduction allowed by section 222A.''.
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by inserting after 
the item relating to section 222 the following new item:

``Sec. 222A. STEM qualified higher education expenses.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to payments made in taxable years beginning after the date of the 
enactment of this Act.

SEC. 3. CREDITS FOR CERTAIN CONTRIBUTIONS BENEFITTING SCIENCE, 
              TECHNOLOGY, ENGINEERING, AND MATHEMATICS EDUCATION AT THE 
              ELEMENTARY AND SECONDARY SCHOOL LEVEL.

    (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. 45S. CONTRIBUTIONS BENEFITTING SCIENCE, TECHNOLOGY, ENGINEERING, 
              AND MATHEMATICS EDUCATION AT THE ELEMENTARY AND SECONDARY 
              SCHOOL LEVEL.

    ``(a) In General.--For purposes of section 38, the elementary and 
secondary school STEM contributions credit determined under this 
section for the taxable year is an amount equal to the qualified STEM 
contributions made by the taxpayer during the taxable year to one or 
more elementary or secondary schools.
    ``(b) Maximum Credit.--
            ``(1) Per taxpayer.--The amount of qualified STEM 
        contributions made to any school which may be taken into 
        account under this section by the taxpayer for the taxable year 
        shall not exceed the portion of the limitation under paragraph 
        (2) which is allocated by such school to the taxpayer for such 
        year.
            ``(2) Per school.--The amount of qualified STEM 
        contributions made to any school which may be allocated under 
        this section by the school to all taxpayers for all taxable 
        years shall not exceed $100,000.
    ``(c) Qualified STEM Contributions.--For purposes of this section--
            ``(1) In general.--The term `qualified STEM contributions' 
        means--
                    ``(A) STEM property contributions,
                    ``(B) STEM service contributions, and
                    ``(C) STEM student and educator training 
                contributions.
            ``(2) STEM property contributions.--
                    ``(A) In general.--The term `STEM property 
                contribution' means the amount which would (but for 
                subsection (d)) be allowed as a deduction under section 
                170 for a charitable contribution of STEM property if--
                            ``(i) the donee is an elementary or 
                        secondary school,
                            ``(ii) substantially all of the use of the 
                        property by the donee is within the United 
                        States for STEM education in any of the grades 
                        K-12 for use during the school day or in after-
                        school programs,
                            ``(iii) the original use of the property 
                        begins with the donee,
                            ``(iv) the property will fit productively 
                        into the donee's education plan,
                            ``(v) the property is not transferred by 
                        the donee in exchange for money, other 
                        property, or services, except for shipping, 
                        installation and transfer costs, and
                            ``(vi) the donee's use and disposition of 
                        the property will be in accordance with the 
                        provisions of clauses (ii) through (v).
                    ``(B) STEM property.--The term `STEM property' 
                means--
                            ``(i) computer equipment and software,
                            ``(ii) microscopes,
                            ``(iii) lab equipment, including glassware, 
                        digital scales, and temperature measuring 
                        devices,
                            ``(iv) property used to maintain, renovate, 
                        or improve laboratory facilities,
                            ``(v) STEM education curricula, and
                            ``(vi) whiteboards, smartboards, cameras, 
                        and other relevant STEM education materials.
            ``(3) STEM service contributions.--
                    ``(A) In general.--The term `STEM service 
                contributions' means the amount paid or incurred during 
                the taxable year to provide STEM services in the United 
                States for the exclusive benefit of students at an 
                elementary or secondary school but only if no charge is 
                imposed for providing such services.
                    ``(B) STEM services.--The term `STEM services' 
                means--
                            ``(i) providing students the opportunity to 
                        engage in hands-on technical equipment training 
                        in a STEM education field, and
                            ``(ii) bringing experts in a STEM education 
                        field into the classroom or after school 
                        programs for demonstrations, talks, or 
                        mentoring exercises.
            ``(4) STEM student and educator training contributions.--
                    ``(A) In general.--The term `STEM student and 
                educator training contributions' means the amount paid 
                or incurred during the taxable year to provide STEM 
                student and educator training services in the United 
                States for the exclusive benefit of students at an 
                elementary or secondary school but only if no charge is 
                imposed for providing such services.
                    ``(B) STEM student and educator training 
                services.--The term `STEM student and educator training 
                services' means--
                            ``(i) on-site technical equipment training 
                        in a STEM education field,
                            ``(ii) field trips to research or related 
                        facilities in a STEM education field,
                            ``(iii) student internships or long term 
                        on-site training in a STEM education field, and
                            ``(iv) educator training exercises in a 
                        STEM education field.
            ``(5) STEM education.--The term `STEM education' means 
        education in the biological sciences, mathematics, earth and 
        physical sciences, computer and information science, 
        engineering, geosciences, and social and behavioral sciences.
            ``(6) Elementary or secondary school.--
                    ``(A) In general.--The term `elementary or 
                secondary school' means any school which provides 
                elementary education or secondary education 
                (kindergarten through grade 12), as determined under 
                State law.
                    ``(B) Groupings of schools.--Such term includes 
                consortia or other groupings of such schools if all 
                such schools in the consortia or grouping are located 
                within the same State.
    ``(d) Denial of Double Benefit.--No deduction shall be allowed 
under this chapter for any amount allowed as a credit under this 
section.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended by striking 
        ``plus'' at the end of paragraph (35), by striking the period 
        at the end of paragraph (36), and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(37) the elementary and secondary school STEM 
        contributions credit determined under section 45S.''.
            (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 new item:

``Sec. 45S. Contributions benefitting science, technology, engineering, 
                            and mathematics education at the elementary 
                            and secondary school level.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 4. GAO STUDY.

    Not later than 5 years after the date of the enactment of this Act, 
the Government Accountability Office, in consultation with the 
Secretary of the Treasury, shall submit to Congress a report 
detailing--
            (1) the efficacy of the STEM Education Opportunity Act in 
        increasing higher education enrollment in the fields of math, 
        science, engineering, and technology, and
            (2) any effect such Act has had on the price of higher 
        education tuition in such fields.