21st Century Classrooms Act for Private Technology Investment

Summary: 21st Century Classrooms Act for Private Technology Investment - Amends the Internal Revenue Code to provide businesses with a deduction for:  (1) the donation of computer technology and equipment (within two years of production or acquisition) to elementary or secondary schools, tax-exempt entities supporting education, or private foundations that contribute such property to these entities; and (2) cash contributions used for such purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``21st Century Classrooms Act for 
Private Technology Investment''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) The General Accounting Office reported in 1995 that 
        ``America's schools are not designed or equipped for the 21st 
        Century'';
            (2) an excellent education that provides American children 
        with a fighting chance at the American Dream includes rigorous 
        academic basic instruction, plus technological literacy and 
        proficiency in working with computers;
            (3) by the year 2000, 60 percent of American jobs will 
        require technology skills; thus, without early training in 
        technological literacy, many of our future leaders will start 
        their adult lives at a severe economic disadvantage;
            (4) while America's classrooms are supported by dedicated 
        teachers, involved families, and bright young children, many of 
        our Nation's classrooms lack the important technological 
        resources that they need to prepare both teachers and students 
        for a technologically advanced present and future;
            (5) advanced technology has improved America's economic 
        competitiveness, transformed commerce and communications, and 
        improved the quality of life of millions of Americans, but it 
        has not yet made as transforming an impact on the way schools 
        educate children;
            (6) the Internet and the World Wide Web are revolutionizing 
        the way individuals and organizations share and find 
        information, yet only 14 percent of our classrooms have a 
        telephone jack, and about 1 in 50 are connected to the 
        Internet; furthermore, the most common computer in our Nation's 
        schools is the Apple 2c, introduced over a decade ago and now 
        on display at the Smithsonian Institution; and while 50 percent 
        of schools have local area computer networks (LANs), less than 
        10 percent of those networks connect with computers in 
        classrooms;
            (7) therefore, bringing America's classrooms into the 21st 
        Century requires a major national investment in technology, 
        including computers, software, and interactive 
        interconnectivity;
            (8) the sums required to bring our classrooms into the 21st 
        Century extend into the tens of billions of dollars;
            (9) Congress has authorized and funded several programs 
        which invest in education technology; however, because of the 
        immense scale of the need, and because primary and secondary 
        education are primarily a local and State responsibility, 
        bringing our classrooms into the 21st Century is best done in a 
        manner that does not increase Federal Government expenditures 
        or bureaucracy and keeps control as close as possible to the 
        children and teachers who will benefit; and
            (10) many businesses invest their time and resources into 
        classrooms; but the tremendous need for additional computer 
        equipment and software in our classrooms, plus the wave of 
        computer upgrades taking place among businesses in the United 
        States, argue persuasively for an additional financial 
        incentive to encourage businesses to invest their equipment 
        into 21st Century classrooms.
    (b) Purpose.--The purpose of this Act is to direct the innovation 
and energy of private enterprise to the education of our young people, 
expand technological literacy, and bring the education of our young 
people into the 21st Century.

SEC. 3. CONTRIBUTIONS FOR COMPUTER TECHNOLOGY AND EQUIPMENT FOR 
              ELEMENTARY OR SECONDARY SCHOOL PURPOSES.

    (a) Contributions of Computer Technology and Equipment for 
Elementary or Secondary School Purposes.--Subsection (e) of section 170 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new paragraph:
            ``(6) Special rule for contributions of computer technology 
        and equipment for elementary or secondary school purposes.--
                    ``(A) Limit on reduction.--In the case of a 
                qualified elementary or secondary educational 
                contribution, the reduction under paragraph (1)(A) 
                shall be no greater than the amount determined under 
                paragraph (3)(B).
                    ``(B) Qualified elementary or secondary educational 
                contribution.--For purposes of this paragraph, the term 
                `qualified elementary or secondary educational 
                contribution' means a charitable contribution by a 
                corporation of any computer technology or equipment, 
                but only if--
                            ``(i) the contribution is to--
                                    ``(I) an educational organization 
                                described in subsection (b)(1)(A)(ii), 
                                or
                                    ``(II) an entity described in 
                                section 501(c)(3) and exempt from tax 
                                under section 501(a) (other than an 
                                entity described in subclause (I)) that 
                                is organized primarily for purposes of 
                                supporting elementary and secondary 
                                education,
                            ``(ii) the contribution is made not later 
                        than 2 years after the date the taxpayer 
                        acquired the property (or in the case of 
                        property constructed by the taxpayer, the date 
                        the construction of the property is 
                        substantially completed),
                            ``(iii) substantially all of the use of the 
                        property by the donee is for use within the 
                        United States for educational purposes in any 
                        of the grades K-12 that are related to the 
                        purpose or function of the organization or 
                        entity,
                            ``(iv) the property is not transferred by 
                        the donee in exchange for money, other 
                        property, or services, except for shipping, 
                        installation and transfer costs,
                            ``(v) the property will fit productively 
                        into the entity's education plan, and
                            ``(vi) the entity's use and disposition of 
                        the property will be in accordance with the 
                        provisions of clauses (iii) and (iv).
                    ``(C) Contribution to private foundation.--A 
                contribution by a corporation of any computer 
technology or equipment to a private foundation (as defined in section 
509) shall be treated as a qualified elementary or secondary 
educational contribution for purposes of this paragraph if--
                            ``(i) the contribution to the private 
                        foundation satisfies the requirements of 
                        clauses (ii) and (iv) of subparagraph (B), and
                            ``(ii) within 30 days after such 
                        contribution, the private foundation--
                                    ``(I) contributes the property to 
                                an entity described in clause (i) of 
                                subparagraph (B) that satisfies the 
                                requirements of clauses (iii) through 
                                (vi) of subparagraph (B), and
                                    ``(II) notifies the donor of such 
                                contribution.
                    ``(D) Special rule relating to construction of 
                property.--For the purposes of this paragraph, 
                paragraph (4)(C) shall apply.
                    ``(E) Definitions.--For the purposes of this 
                paragraph--
                            ``(i) Computer technology or equipment.--
                        The term `computer technology or equipment' 
                        means computer software (as defined by section 
                        197(e)(3)(B)), computer or peripheral equipment 
                        (as defined by section 168(i)(2)(B)), and fiber 
                        optic cable related to computer use.
                            ``(ii) Corporation.--The term `corporation' 
                        has the meaning given to such term by paragraph 
                        (4)(D).''
    (b) Contributions of Cash for Computer Technology and Equipment for 
Elementary or Secondary School Purposes.--Subsection (a) of section 170 
of such Code is amended by adding at the end the following new 
paragraph:
            ``(4) In the case of a corporation, the amount of each 
        charitable contribution of cash to an organization or entity 
        described in subsection (e)(6)(B)(i) to be used by such 
        organization or entity for the purpose of acquiring computer 
        technology or equipment (as defined in subsection (e)(6)(E)(i)) 
        shall be treated for purposes of this section as being equal to 
        110 percent of the amount of such contribution which (but for 
        this sentence) would otherwise be taken into account under this 
        section.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the calendar year in which this 
Act is enacted.