I 

108TH CONGRESS 

1ST SESSION H. R. 3064

To amend the Internal Revenue Code of 1986 to encourage stronger math 

and science programs at elementary and secondary schools. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 10, 2003

Mr. EHLERS 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 encourage 

stronger math and science programs at elementary and 

secondary schools.

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 ‘‘National Science Edu5 cation Incentive Act of 2003’’. 

6 SEC. 2. FINDINGS. 

7 The Congress finds the following: 

8 (1) As concluded in the report of the Com9 mittee on Science of the House of Representatives, 

10 ‘‘Unlocking Our Future Toward a New National 
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1 Science Policy,’’ which was adopted by the House of 

2 Representatives, the United States must maintain 

3 and improve its preeminent position in science and 

4 technology in order to advance human under5 standing of the universe and all it contains, and to 

6 improve the lives, health, and freedoms of all people. 

7 (2) It is estimated that more than half of the 

8 economic growth of the United States today results 

9 directly from research and development in science 

10 and technology. The most fundamental research is 

11 responsible for investigating our perceived universe, 

12 to extend our observations to the outer limits of 

13 what our minds and methods can achieve, and to 

14 seek answers to questions that have never been 

15 asked before. Applied research continues the process 

16 by applying the answers from basic science to the 

17 problems faced by individuals, organizations, and 

18 governments in the everyday activities that make our 

19 lives more livable. 

20 (3) The effectiveness of the United States in 

21 promoting economic growth will be largely deter22 mined by the intellectual capital of the United 

23 States. Education is critical to developing this re24 source. 
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1 (4) The education program of the United States 

2 needs to provide for 3 different kinds of intellectual 

3 capital. First, it needs scientists and engineers to 

4 continue the research and development that is cen5 tral to the economic growth of the United States. 

6 Second, it needs technologically proficient workers 

7 who are comfortable and capable dealing with the 

8 demands of a science-based, high-technology work9 place. Last, it needs scientifically literate voters and 

10 consumers to make intelligent decisions about public 

11 policy. 

12 (5) Student performance on the recent Third 

13 International Math and Science Study highlights the 

14 shortcomings of current K–12 science and mathe15 matics education in the United States, particularly 

16 when compared to other countries. We must expect 

17 more from our Nation’s educators and students if 

18 we are to build on the accomplishments of previous 

19 generations. New methods of teaching mathematics 

20 and science are required, as well as better curricula 

21 and improved training of teachers. 

22 (6) Science is more than a collection of facts, 

23 theories, and results. It is a process of inquiry built 

24 upon observations and data that leads to a way of 
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1 knowing and explaining in logically derived concepts 

2 and theories. 

3 (7) Students should learn science primarily by 

4 doing science. Science education ought to reflect the 

5 scientific process and be object-oriented, experiment6 centered, and concept-based. 

7 (8) Children are naturally curious and inquisi8 tive. To successfully tap into these innate qualities, 

9 education in science must begin at an early age and 

10 continue throughout the entire school experience. 

11 (9) Teachers provide the essential connection 

12 between students and the content they are learning. 

13 High-quality prospective teachers need to be identi14 fied and recruited by presenting to them a career 

15 that is respected by their peers, is financially and in16 tellectually rewarding, and contains sufficient oppor17 tunities for advancement. 

18 (10) Teachers need to have incentives to remain 

19 in the classroom and improve their practice, and 

20 training of teachers is essential if the results are to 

21 be good. Teachers need to be knowledgeable of their 

22 content area, of their curriculum, of up-to-date re23 search in teaching and learning, and of techniques 

24 that can be used to connect that information to their 

25 students in their classroom. 
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1 SEC. 3. REFUNDABLE CREDIT FOR PORTION OF TUITION 

2 PAID FOR UNDERGRADUATE EDUCATION OF 

3 CERTAIN TEACHERS. 

4 (a) IN GENERAL.—Subpart C of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to refundable credits) is amended by redes7 ignating section 36 as section 37 and by inserting after 

8 section 35 the following new section: 

9 ‘‘SEC. 36. TUITION FOR UNDERGRADUATE EDUCATION OF 

10 CERTAIN TEACHERS. 

11 ‘‘(a) IN GENERAL.—In the case of an individual who 

12 is an eligible teacher for the taxable year, there shall be 

13 allowed as a credit against the tax imposed by this subtitle 

14 an amount equal to 10 percent of qualified undergraduate 

15 tuition paid by such individual. 

16 ‘‘(b) LIMITATIONS.—

17 ‘‘(1) DOLLAR AMOUNT.—The credit allowed by 

18 this section for any taxable year shall not exceed 

19 $1,000.

20 ‘‘(2) CREDIT ALLOWED ONLY FOR 10 YEARS.—

21 No credit shall be allowed under this section for any 

22 taxable year after the 10th taxable year for which 

23 credit is allowed under this section. 

24 ‘‘(c) ELIGIBLE TEACHER.—For purposes of this sec25 tion—
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1 ‘‘(1) IN GENERAL.—The term ‘eligible teacher’ 

2 means, with respect to a taxable year, any indi3 vidual—

4 ‘‘(A) who is a full-time teacher, including 

5 a full-time substitute teacher, in any of grades 

6 kindergarten through 12th grade for the aca7 demic year ending in such taxable year, 

8 ‘‘(B)(i) who teaches primarily math, 

9 science, engineering, or technology courses in 1 

10 or more of grades 9 through 12 during such 

11 academic year, or 

12 ‘‘(ii) who teaches math, science, engineer13 ing, or technology courses in 1 or more of 

14 grades kindergarten through 8 during such aca15 demic year, 

16 ‘‘(C) who received a baccalaureate or simi17 lar degree with a major in mathematics, 

18 science, engineering, or technology from a quali19 fied educational institution, and 

20 ‘‘(D) who is highly qualified (as defined in 

21 section 9101(23) of the Elementary and Sec22 ondary Education Act of 1965). 

23 ‘‘(2) SPECIAL RULE FOR ADMINISTRATIVE PER24 SONNEL.—School administrative functions shall be 

25 treated as teaching courses referred to in paragraph 
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1 (1)(B) if such functions primarily relate to such 

2 courses or are for a school which focuses primarily 

3 on such courses. 

4 ‘‘(3) QUALIFIED EDUCATIONAL INSTITUTION.—

5 The term ‘qualified educational institution’ means 

6 any eligible educational institution (as defined in 

7 section 25A(f)(2)) if—

8 ‘‘(A) more than 80 percent of such institu9 tion’s graduates who apply for certification by 

10 any State as a teacher are so certified, and 

11 ‘‘(B) such institution’s school of education 

12 (or equivalent unit) has an advisory committee 

13 which includes (on a rotating basis or other14 wise) practicing mathematicians and scientists 

15 and representatives from several of the appro16 priate science, mathematics, engineering, and 

17 technology departments of such institution. 

18 ‘‘(d) QUALIFIED UNDERGRADUATE TUITION.—For 

19 purposes of this section, the term ‘qualified undergraduate 

20 tuition’ means qualified higher education expenses (as de21 fined in section 529(e)(3)) for a qualified educational in22 stitution, reduced as provided in section 25A(g)(2) and by 

23 any credit allowed by section 25A with respect to such 

24 expenses. 
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1 ‘‘(e) REGULATIONS.—The Secretary shall prescribe 

2 such regulations as may be appropriate to carry out the 

3 purposes of this section.’’.

4 (b) CONFORMING AMENDMENTS.—

5 (1) Paragraph (2) of section 1324(b) of title 

6 31, United States Code, is amended by inserting ‘‘or 

7 36’’ after ‘‘section 35’’. 

8 (2) The table of sections for subpart C of part 

9 IV of subchapter A of chapter 1 of such Code is 

10 amended by striking the last item and inserting the 

11 following new items:

‘‘Sec. 36. Tuition for undergraduate education of certain teachers. 

‘‘Sec. 37. Overpayments of tax.’’.

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 the date of the enactment of this Act; except that only 

15 periods of being an eligible teacher (as defined in section 

16 36(c) of the Internal Revenue Code of 1986, as added by 

17 this section) after such date shall be taken into account 

18 under section 36(b)(2) of such Code, as so added.
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1 SEC. 4. CREDITS FOR CERTAIN CONTRIBUTIONS BENE2 FITING SCIENCE, MATHEMATICS, ENGINEER3 ING, AND TECHNOLOGY EDUCATION AT THE 

4 ELEMENTARY AND SECONDARY SCHOOL 

5 LEVEL. 

6 (a) IN GENERAL.—Subpart D of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986 (relating to business related credits) is amended by 

9 adding at the end the following new section: 

10 ‘‘SEC. 45G. CONTRIBUTIONS BENEFITING SCIENCE, MATHE11 MATICS, ENGINEERING, AND TECHNOLOGY 

12 EDUCATION AT THE ELEMENTARY AND SEC13 ONDARY SCHOOL LEVEL. 

14 ‘‘(a) IN GENERAL.—For purposes of section 38, the 

15 elementary and secondary science, mathematics, engineer16 ing, and technology (SMET) contributions credit deter17 mined under this section for the taxable year is an amount 

18 equal to 100 percent of the qualified SMET contributions 

19 of the taxpayer for such taxable year. 

20 ‘‘(b) QUALIFIED SMET CONTRIBUTIONS.—For pur21 poses of this section, the term ‘qualified SMET contribu22 tions’ means—

23 ‘‘(1) SMET school contributions, 

24 ‘‘(2) SMET teacher externship expenses, and 

25 ‘‘(3) SMET teacher training expenses. 
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1 ‘‘(c) SMET SCHOOL CONTRIBUTIONS.—For pur2 poses of this section—

3 ‘‘(1) IN GENERAL.—The term ‘SMET school 

4 contributions’ means—

5 ‘‘(A) SMET property contributions, and 

6 ‘‘(B) SMET service contributions. 

7 ‘‘(2) SMET PROPERTY CONTRIBUTIONS.—The 

8 term ‘SMET property contributions’ means the 

9 amount which would (but for subsection (f)) be al10 lowed as a deduction under section 170 for a chari11 table contribution of SMET inventory property if—

12 ‘‘(A) the donee is an elementary or sec13 ondary school described in section 

14 170(b)(1)(A)(ii), 

15 ‘‘(B) substantially all of the use of the 

16 property by the donee is within the United 

17 States for educational purposes in any of the 

18 grades K–12 that are related to the purpose or 

19 function of the donee, 

20 ‘‘(C) the original use of the property be21 gins with the donee, 

22 ‘‘(D) the property will fit productively into 

23 the donee’s education plan, 

24 ‘‘(E) the property is not transferred by the 

25 donee in exchange for money, other property, or 
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1 services, except for shipping, installation and 

2 transfer costs, and 

3 ‘‘(F) the donee’s use and disposition of the 

4 property will be in accordance with the provi5 sions of subparagraphs (B) and (E). 

6 The determination of the amount of deduction under 

7 section 170 for purposes of this paragraph shall be 

8 made as if the limitation under section 170(e)(3)(B) 

9 applied to all SMET inventory property. 

10 ‘‘(3) SMET SERVICE CONTRIBUTIONS.—The 

11 term ‘SMET service contributions’ means the 

12 amount paid or incurred during the taxable year for 

13 SMET services provided in the United States for the 

14 exclusive benefit of students at an elementary or sec15 ondary school described in section 170(b)(1)(A)(ii) 

16 but only if—

17 ‘‘(A) the taxpayer is engaged in the trade 

18 or business of providing such services on a com19 mercial basis, and 

20 ‘‘(B) no charge is imposed for providing 

21 such services. 

22 ‘‘(4) SMET INVENTORY PROPERTY.—The term 

23 ‘SMET inventory property’ means, with respect to 

24 any contribution to a school, any property—
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1 ‘‘(A) which is described in paragraph (1) 

2 or (2) of section 1221(a) with respect to the 

3 donor, and 

4 ‘‘(B) which is determined by the school to 

5 be needed by the school in providing education 

6 in grades K–12 in the areas of science, mathe7 matics, engineering, or technology. 

8 ‘‘(5) SMET SERVICES.—The term ‘SMET serv9 ices’ means, with respect to any contribution to a 

10 school, any service determined by the school to be 

11 needed by the school in providing education in 

12 grades K–12 in the areas of science, mathematics, 

13 engineering, or technology, including teaching 

14 courses of instruction at such school in any such 

15 area. 

16 ‘‘(d) SMET TEACHER EXTERNSHIP EXPENSES.—

17 For purposes of this section—

18 ‘‘(1) IN GENERAL.—The term ‘SMET teacher 

19 externship expenses’ means any amount paid or in20 curred to carry out a SMET externship program of 

21 the taxpayer but only to the extent that such 

22 amount is attributable to the participation in such 

23 program of any eligible SMET teacher, including 

24 amounts paid to such a teacher as a stipend while 

25 participating in such program.
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1 ‘‘(2) SMET EXTERNSHIP PROGRAM.—The term 

2 ‘SMET externship program’ means any program—

3 ‘‘(A) established by a taxpayer engaged in 

4 a trade or business within an area of science, 

5 mathematics, engineering, or technology, and 

6 ‘‘(B) under which eligible SMET teachers 

7 receive training to enhance their teaching skills 

8 in the areas of science, mathematics, engineer9 ing, or technology or otherwise improve their 

10 knowledge in such areas. 

11 ‘‘(3) ELIGIBLE SMET TEACHER.—The term ‘eli12 gible SMET teacher’ means any individual—

13 ‘‘(A) who is a teacher in grades K–12 at 

14 an educational organization described in section 

15 170(b)(1)(A)(ii) which is located in the United 

16 States or which is located on a United States 

17 military base outside the United States, and 

18 ‘‘(B) whose teaching responsibilities at 

19 such school include, or are likely to include, any 

20 course in the areas of science, mathematics, en21 gineering, or technology. 

22 ‘‘(e) SMET TEACHER TRAINING EXPENSES.—The 

23 term ‘SMET teacher training expenses’ means any 

24 amount paid or incurred by a taxpayer engaged in a trade 

25 or business within an area of science, mathematics, engi-
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1 neering, or technology which is attributable to the partici2 pation of any eligible SMET teacher in a regular training 

3 program provided to employees of the taxpayer which is 

4 determined by such teacher’s school as enhancing such 

5 teacher’s teaching skills in the areas of science, mathe6 matics, engineering, or technology. 

7 ‘‘(f) DENIAL OF DOUBLE BENEFIT.—No deduction 

8 shall be allowed under this chapter for any amount allowed 

9 as a credit under this section.’’. 

10 (b) CONFORMING AMENDMENTS.—

11 (1) Section 38(b) of such Code is amended—

12 (A) by striking ‘‘plus’’ at the end of para13 graph (14), 

14 (B) by striking the period at the end of 

15 paragraph (15), and inserting ‘‘, plus’’, and 

16 (C) by adding at the end the following new 

17 paragraph: 

18 ‘‘(16) the elementary and secondary science, 

19 mathematics, engineering, and technology (SMET) 

20 contributions credit determined under section 45G.’’. 

21 (2) Subsection (d) of section 39 of such Code 

22 (relating to carryback and carryforward of unused 

23 credits) is amended by adding at the end the fol24 lowing new paragraph: 
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1 ‘‘(11) NO CARRYBACK OF SECTION 45G CREDIT

2 BEFORE ENACTMENT OF CREDIT.—No portion of the 

3 unused business credit for any taxable year which is 

4 attributable to the credit determined under section 

5 45G may be carried back to a taxable year beginning 

6 before the date of the enactment of this para7 graph.’’. 

8 (3) The table of sections for subpart D of part 

9 IV of subchapter A of chapter 1 of such Code is 

10 amended by adding at the end the following new 

11 item:

‘‘Sec. 45G. Contributions benefiting science, mathematics, engineering, and technology education at the elementary and secondary school level.’’.

12 (c) EFFECTIVE DATE.—The amendments made by 

13 this section shall apply to taxable years beginning after 

14 the date of the enactment of this Act. 

15 SEC. 5. ASSURANCE OF CONTINUED LOCAL CONTROL. 

16 Nothing in this Act may be construed to authorize 

17 any department, agency, officer, or employee of the United 

18 States to exercise any direction, supervision, or control 

19 over the curriculum, program of instruction, administra20 tion, or personnel of any educational institution or school 

21 system.

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