SECTION 1. CHARITABLE CONTRIBUTIONS OF SCIENTIFIC EQUIPMENT TO 
              ELEMENTARY AND SECONDARY SCHOOLS.

    (a) In General.--Subparagraph (B) of section 170(e)(4) of the 
Internal Revenue Code of 1986 is amended to read as follows:
                    ``(B) Qualified research or education 
                contribution.--For purposes of this paragraph, the term 
                `qualified research or education contribution' means a 
                charitable contribution by a corporation of tangible 
                personal property (including computer software), but 
                only if--
                            ``(i) the contribution is to--
                                    ``(I) an educational organization 
                                described in subsection (b)(1)(A)(ii),
                                    ``(II) a governmental unit 
                                described in subsection (c)(1), or
                                    ``(III) an organization described 
                                in section 41(e)(6)(B),
                            ``(ii) the contribution is made not later 
                        than 3 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) the property is scientific 
                        equipment or apparatus substantially all of the 
                        use of which by the donee is for--
                                    ``(I) research or experimentation 
                                (within the meaning of section 174), or 
                                for research training, in the United 
                                States in physical or biological 
                                sciences, or
                                    ``(II) in the case of an 
                                organization described in clause (i) 
                                (I) or (II), use within the United 
                                States for educational purposes related 
                                to the purpose or function of the 
                                organization,
                            ``(iv) the original use of the property 
                        began with the taxpayer (or in the case of 
                        property constructed by the taxpayer, with the 
                        donee),
                            ``(v) the property is not transferred by 
                        the donee in exchange for money, other 
                        property, or services, and
                            ``(vi) the taxpayer receives from the donee 
                        a written statement representing that its use 
                        and disposition of the property will be in 
                        accordance with the provisions of clauses (iv) 
                        and (v).''
    (b) Donations to Charity for Refurbishing.--Section 170(e)(4) of 
the Internal Revenue Code of 1986 is amended by adding at the end the 
following new subparagraph:
                    ``(D) Donations to charity for refurbishing.--For 
                purposes of this paragraph, a charitable contribution 
                by a corporation shall be treated as a qualified 
                research or education contribution if--
                            ``(i) such contribution is a contribution 
                        of property described in subparagraph (B)(iii) 
                        to an organization described in section 
                        501(c)(3) and exempt from taxation under 
                        section 501(a),
                            ``(ii) such organization repairs and 
                        refurbishes the property and donates the 
                        property to an organization described in 
                        subparagraph (B)(i), and
                            ``(iii) the taxpayer receives from the 
                        organization to whom the taxpayer contributed 
                        the property a written statement representing 
                        that its use of the property (and any use by 
                        the organization to which it donates the 
                        property) meets the requirements of this 
                        paragraph.''
    (c) Conforming Amendments.--
            (1) Paragraph (4)(A) of section 170(e) of the Internal 
        Revenue Code of 1986 is amended by striking ``qualified 
        research contribution'' each place it appears and inserting 
        ``qualified research or education contribution''.
            (2) The heading for section 170(e)(4) of such Code is 
        amended by inserting ``or education'' after ``research''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1996.
Amends the Internal Revenue Code to revise the rules concerning a "qualified research contribution," for purposes of the deduction for charitable contributions.  Redefine such term as a "qualified research or education contribution."
A bill to amend the Internal Revenue Code of 1986 to allow companies to donate scientific equipment to elementary and secondary schools for use in their educational programs, and for other purposes.