I 

108TH CONGRESS 

1ST SESSION H. R. 2763

To amend the Internal Revenue Code of 1986 to allow a business credit 

for donations for vocational educational purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 16, 2003

Mr. POMBO introduced the following bill; which was referred to the Committee 

on Ways and Means 

A BILL

To amend the Internal Revenue Code of 1986 to allow a 

business credit for donations for vocational educational 

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Public Private Voca5 tional Partnership Act of 2003’’. 

6 SEC. 2. DONATIONS TO HIGH SCHOOLS AND COMMUNITY 

7 COLLEGES FOR VOCATIONAL EDUCATION 

8 PURPOSES. 

9 (a) IN GENERAL.—Subpart D of part IV of sub10 chapter A of chapter 1 of the Internal Revenue Code of 
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1 1986 (relating to business-related credits) is amended by 

2 adding at the end the following new section: 

3 ‘‘SEC. 45G. DONATIONS TO HIGH SCHOOLS AND COMMU4 NITY COLLEGES FOR VOCATIONAL EDU5 CATION PURPOSES. 

6 ‘‘(a) GENERAL RULE.—For purposes of section 38, 

7 in the case of a corporation (as defined in section 

8 170(e)(4)(D)), the vocational education donation credit 

9 determined under this section for the taxable year is an 

10 amount equal to the sum of—

11 ‘‘(1) 90 percent of the fair market value of 

12 qualified property donations made during the tax13 able year, plus 

14 ‘‘(2) the aggregate of the intern credit amounts. 

15 ‘‘(b) LIMITATIONS.—

16 ‘‘(1) QUALIFIED PROPERTY DONATIONS.—The 

17 amount allowed as a credit under subsection (a)(1) 

18 shall not exceed $50,000. 

19 ‘‘(2) INTERN CREDIT AMOUNT.—

20 ‘‘(A) IN GENERAL.—The amount allowed 

21 as a credit under subsection (a)(2) with respect 

22 to a qualified intern shall be the amount equal 

23 to $100 multiplied by the number of months 

24 during the taxable year in which the intern was 

25 an employee of the taxpayer. 
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1 ‘‘(B) AGGREGATE PER INTERN CREDIT

2 AMOUNTS.—The aggregate amount allowed to 

3 the taxpayer as a credit under subsection (a)(2) 

4 for the taxable year shall not exceed $6,000. 

5 ‘‘(c) QUALIFIED PROPERTY DONATIONS.—For pur6 poses of this section, the term ‘qualified property dona7 tions’ means a charitable contribution (as defined in sec8 tion 170(c)) of tangible personal property if—

9 ‘‘(1) the contribution is to an educational orga10 nization described in section 170(b)(1)(A)(ii) which 

11 is a high school or community college, 

12 ‘‘(2) substantially all of the use of the property 

13 by the donee is for use within the United States for 

14 educational purposes that are related to the purpose 

15 or function of the donee, 

16 ‘‘(3) the property is not transferred by the 

17 donee in exchange for money, other property, or 

18 services, except for shipping, installation and trans19 fer costs, 

20 ‘‘(4) the property will fit productively into the 

21 donee’s education plan, 

22 ‘‘(5) the donee’s use and disposition of the 

23 property will be in accordance with the provisions of 

24 paragraphs (2), (3), and (4), and 
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1 ‘‘(6) the property meets such standards, if any, 

2 as the Secretary may prescribe by regulation to as3 sure that the property meets minimum functionality 

4 and suitability standards for educational purposes. 

5 ‘‘(d) QUALIFIED INTERN.—For purposes of this sec6 tion—

7 ‘‘(1) IN GENERAL.—The term ‘qualified intern’ 

8 means an individual—

9 ‘‘(A) who is enrolled full-time as a student 

10 in a high school or community college, and 

11 ‘‘(B) who is employed for not more than 

12 20 hours per week by the taxpayer as part of 

13 a vocational education course approved by such 

14 school or college. 

15 ‘‘(2) HIGH SCHOOL.—The term ‘high school’ 

16 means any school which provides secondary edu17 cation in grades 9 through 12, as determined under 

18 State law, and which offers a program of education 

19 in vocational education. 

20 ‘‘(3) COMMUNITY COLLEGE.—The term ‘com21 munity college’ means a public or nonprofit private 

22 postsecondary regionally accredited institution that 

23 provides not less than a 2-year program of instruc24 tion that is acceptable for full credit toward a bach25 elor’s degree at an accredited institution and whose 
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1 highest degree offered is predominantly the associate 

2 degree. 

3 ‘‘(e) AGGREGATION RULE.—For purposes of sub4 section (b), all persons treated as a single employer under 

5 subsection (a) or (b) of section 52 or subsection (n) or 

6 (o) of section 414 shall be treated as one person. 

7 ‘‘(f) COORDINATION WITH SECTION 170(b).—The 

8 limitation which would (but for this subsection) apply 

9 under section 170(b) for any taxable year shall be reduced 

10 (but not below zero) by the fair market value of property 

11 taken into account in determining the credit allowed under 

12 subsection (a)(1) for such year.’’. 

13 (b) CREDIT TO BE PART OF GENERAL BUSINESS

14 CREDIT.—

15 (1) Subsection (b) of section 38 of such Code 

16 (relating to general business credit) is amended by 

17 striking ‘‘plus’’ at the end of paragraph (14), by 

18 striking the period at the end of paragraph (15) and 

19 inserting ‘‘, plus’’, and by adding at the end the fol20 lowing new paragraph: 

21 ‘‘(16) in the case of a corporation (as defined 

22 in section 170(e)(4)(D)), the vocational education 

23 donation credit determined under section 45G(a).’’. 
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1 (2) Section 39(d) of such Code (relating to transition 

2 rules) is amended by adding at the end the following new 

3 paragraph: 

4 ‘‘(11) NO CARRYBACK OF VOCATIONAL EDU5 CATION DONATION CREDIT BEFORE EFFECTIVE

6 DATE.—No portion of the unused business credit for 

7 any taxable year which is attributable to the voca8 tional education donation credit determined under 

9 section 45G may be carried to a taxable year begin10 ning before January 1, 2003.’’. 

11 (c) DENIAL OF DOUBLE BENEFIT.—Section 280C of 

12 such Code (relating to certain expenses for which credits 

13 are allowable) is amended by adding at the end the fol14 lowing new subsection: 

15 ‘‘(d) VOCATIONAL EDUCATION DONATIONS.—The 

16 deduction otherwise allowed for amounts taken into ac17 count under section 45G shall be reduced by the amount 

18 of the credit determined under section 45G(a) with respect 

19 to such amounts.’’. 

20 (d) CONFORMING AMENDMENT.—The table of sec21 tions for subpart D of part IV of subchapter A of chapter 

22 1 of such Code is amended by inserting after the item 

23 relating to section 45F the following new item:

‘‘Sec. 45G. Donations to high schools and community colleges for vocational 

education purposes.’’.
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1 (e) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2002.

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