A bill to create a new incentive fund that will encourage States to adopt the 21st Century Skills Framework.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``21st Century Skills Incentive Fund 
Act''.

SEC. 2. FINDINGS.

    Congress makes the following findings:
            (1) Students must be prepared in the core subjects of 
        English, reading, mathematics, science, foreign languages, 
        civics, government, economics, art, history, and geography.
            (2) In order for our Nation's students to be prepared to 
        succeed in our communities and workplaces, students need 21st 
        century content, beyond the traditional core subjects, that 
        includes global awareness, financial, economic, business and 
        entrepreneurial literacy, civic literacy, and health and 
        wellness awareness.
            (3) Students need to go beyond just learning today's 
        academic context to develop critical thinking and problem 
        solving skills, communication skills, creativity and innovation 
        skills, collaboration skills, contextual learning skills, and 
        information and media literacy skills.
            (4) Information and communications technology literacy is 
        the ability to use technology to develop 21st century content 
        knowledge and skills, in the content of learning core subjects, 
        and students must be able to use technology to learn content 
        and skills so that the students know how to learn, think 
        critically, solve problems, use information, communicate, 
        innovate, and collaborate.
            (5) Educators need to incorporate life skills into 
        pedagogy, including leadership, ethics, accountability, 
        adaptability, personal productivity, personal responsibility, 
        people skills, self-direction, and social responsibility.
            (6) There needs to be 21st century assessments of education 
        that measure the following priorities:
                    (A) Core subjects, and 21st century themes.
                    (B) Life and career skills.
                    (C) Thinking and innovation skills.
                    (D) Information media and technology skills.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Eligible state.--The term ``eligible State'' means a 
        State that--
                    (A) develops a comprehensive plan for implementing 
                a statewide 21st Century Skills initiative;
                    (B) demonstrates a commitment to advancing 21st 
                Century Skills within--
                            (i) standards and assessments;
                            (ii) curriculum;
                            (iii) professional development; and
                            (iv) the learning environment;
                    (C) achieves broad support for a statewide 21st 
                Century Skills initiative from among the State's 
                education leaders (including classroom practitioners), 
                business leaders, and civic leaders; and
                    (D) is approved as a 21st Century Partner State by 
                the nonprofit, nonpartisan Partnership for 21st Century 
                Skills.
            (2) Fund.--The term ``Fund'' means the 21st Century Skills 
        Incentive Fund established under section 6(a).

SEC. 4. GRANTS AUTHORIZED.

    (a) In General.--The Secretary is authorized to award grants, from 
amounts available in the Fund, to eligible States having applications 
approved under section 5 to enable the eligible States to pay the 
Federal share of the cost of establishing a statewide 21st Century 
Skills initiative.
    (b) Award Rule.--The Secretary shall award grants under this Act on 
a first-come, first-served basis, so that the grants are awarded--
            (1) to eligible States in the order the Secretary receives 
        approvable applications; and
            (2) in an amount determined on the basis of the amount of 
        the non-Federal share identified, and supported by the 
        information contained, in an approvable application.
    (c) Federal Share; Non-Federal Share.--
            (1) Federal share.--The Federal share shall be 50 percent.
            (2) Non-federal share.--The non-Federal share shall be 
        provided from State sources or from foundation sources.
    (d) Duration.--The Secretary shall award each grant under this Act 
for not less than 1 and not more than 3 years.
    (e) Maintenance of Effort.--The Secretary shall reduce the grant 
payable to an eligible State under this Act for a fiscal year by the 
amount, if any, by which the eligible State's expenditures for the 
activities assisted under the grant for the preceding fiscal year are 
less than such expenditures for the second fiscal year preceding the 
fiscal year for which the determination is made.
    (f) Supplement Not Supplant.--Grant funds provided under this Act 
shall be used to supplement and not supplant other State funds expended 
for activities assisted under this Act.

SEC. 5. APPLICATION.

    Each eligible State that desires a grant under this Act shall 
submit an application to the Secretary that--
            (1) describes the 21st Century Skills initiative for which 
        assistance is sought;
            (2) includes evidence that the eligible State has met each 
        of the eligibility criteria described in subparagraphs (A) 
        through (D) of section 3(1);
            (3) includes a description of how the eligible State will 
        provide the non-Federal share of the grant funds; and
            (4) includes a description of how the eligible State will 
        continue to provide the non-Federal share throughout the 
        duration of the grant and the successful statewide 
        implementation of the 21st Century Skills initiative.

SEC. 6. 21ST CENTURY SKILLS INCENTIVE FUND.

    (a) Fund Established.--The Secretary shall establish a 21st Century 
Skills Incentive Fund.
    (b) Deposits.--The Secretary shall deposit into the Fund all 
amounts appropriated under section 8.
    (c) Expenditures.--The Secretary shall use amounts in the Fund to 
award grants to eligible States in accordance with this Act.

SEC. 7. ADMINISTRATIVE PROVISIONS.

    (a) In General.--The Secretary shall administer all aspects of the 
program assisted under this Act, including determining State 
eligibility, making grant awards, determining award amounts and 
duration, and conducting program evaluations.
    (b) Evaluation.--Each eligible State receiving a grant under this 
Act--
            (1) shall conduct an evaluation of the 21st Century Skills 
        initiative assisted under this Act;
            (2) shall use the non-Federal share described in section 
        5(3) to pay the costs of the evaluation; and
            (3) shall submit a copy of the evaluation to the Secretary.

SEC. 8. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this Act 
(other than section 7(b))--
            (1) $100,000,000 for fiscal year 2007;
            (2) $100,000,000 for fiscal year 2008; and
            (3) such sums as may be necessary for each of the fiscal 
        years 2009, 2010, and 2011.

SEC. 9. SEPARATE PERCENTAGE LIMITATION FOR CORPORATE CHARITABLE 
              CONTRIBUTIONS TO 21ST CENTURY SKILLS INITIATIVES OF 
              ELIGIBLE STATES.

    (a) In General.--Section 170(b) of the Internal Revenue Code of 
1986 (related to percentage limitations) is amended by adding at the 
end the following new paragraph:
            ``(3) Special rule for corporate contributions to 21st 
        century skills initiatives of eligible states.--
                    ``(A) In general.--In the case of a corporation 
                which makes a 21st Century Skills initiative 
                contribution, the limitation under paragraph (2) shall 
                apply separately with respect to all such contributions 
                and all other charitable contributions.
                    ``(B) 21st century skills initiative 
                contribution.--For purposes of this paragraph, the term 
                `21st Century Skills initiative contribution' means a 
                charitable contribution in cash to an eligible State 
                (as defined in section 3(1) of the 21st Century Skills 
                Incentive Fund Act) which has a grant application 
                approved under section 5 of such Act.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to contributions made after the date of the enactment of this Act.

Summary: st Century Skills Incentive Fund Act - Authorizes the Secretary of Education to award matching grants to states to establish statewide 21st Century Skills initiatives. Conditions grant eligibility on a state's: (1) developing a comprehensive plan for such initiative. (2) showing a commitment to advancing such skills within standards and assessments, curriculum, professional development, and the learning environment. (3) achieving broad support for the initiative among state education, business, and civic leaders. And (4) being approved as a 21st Century Partner state by the nonprofit, nonpartisan Partnership for 21st Century Skills. Directs the Secretary to establish a 21st Century Skills Incentive Fund from which grants shall be awarded. Amends the Internal Revenue Code to require that the percentage limitation on corporate charitable contributions be applied separately to cash contributions to state 21st Century Skills initiatives and all other corporate charitable contributions.