I 

108TH CONGRESS 

1ST SESSION H. R. 3590

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

against income tax to encourage them to have their employees provide 

volunteer services that aid science, mathematics, and engineering education in grades K–12. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 21, 2003

Mr. CRAMER 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 employers a credit against income tax to encourage them 

to have their employees provide volunteer services that 

aid science, mathematics, and engineering education in 

grades K–12.

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 ‘‘Technology Education 

5 Incentive Act of 2003’’. 
2

•HR 3590 IH 

1 SEC. 2. EMPLOYER CREDIT FOR EMPLOYEE VOLUNTEER 

2 SERVICES IN GRADES K–12. 

3 (a) IN GENERAL.—Subpart D of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of 

5 1986 (relating to business related credits) is amended by 

6 inserting after section 45F the following new section: 

7 ‘‘SEC. 45G. EMPLOYER CREDIT FOR EMPLOYEE VOLUNTEER 

8 SERVICES IN GRADES K–12. 

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

10 volunteer education services credit determined under this 

11 section for the taxable year is an amount equal to 20 per12 cent of the wages paid or incurred by the taxpayer during 

13 the taxable year for qualified employee services. 

14 ‘‘(b) MAXIMUM CREDIT PER EMPLOYEE.—The credit 

15 determined under this section with respect to services per16 formed by an employee during the taxable year shall not 

17 exceed $1,000. 

18 ‘‘(c) DEFINITIONS.—For purposes of this section—

19 ‘‘(1) QUALIFIED EMPLOYEE SERVICES.—The 

20 term ‘qualified employee services’ means any service 

21 furnished by an employee of the taxpayer if—

22 ‘‘(A) the services are performed at a quali23 fied K–12 school, 

24 ‘‘(B) the services are related to science, 

25 mathematics, or engineering education at 

26 grades K–12 at a qualified K–12 school, 
3

•HR 3590 IH 

1 ‘‘(C) the employee receives no additional 

2 compensation for performing such services and 

3 the employer receives no compensation for such 

4 services, and 

5 ‘‘(D) the services are determined by the 

6 qualified K–12 school to be valuable to the 

7 school in providing education in grades K–12 in 

8 the areas of science, mathematics, or engineer9 ing. 

10 ‘‘(2) QUALIFIED K–12 SCHOOL.—The term 

11 ‘qualified K–12 school’ means any school located in 

12 the United States which provides education in 

13 grades K–12 and which meets the requirements of 

14 State law for providing such education. 

15 ‘‘(3) WAGES.—The term ‘wages’ has the mean16 ing given to such term by section 51(c). 

17 ‘‘(d) CONTROLLED GROUPS.—Rules similar to the 

18 rules of section 1397(b) shall apply for purposes of this 

19 section.’’

20 (b) DENIAL OF DOUBLE BENEFIT.—Subsection (a) 

21 of section 280C of such Code is amended by inserting 

22 ‘‘45G(a),’’ after ‘‘45A(a),’’. 

23 (c) CREDIT MADE PART OF GENERAL BUSINESS

24 CREDIT.—
4

•HR 3590 IH 

1 (1) IN GENERAL.—Subsection (b) of section 38 

2 of such Code (relating to current year business cred3 it) is amended by striking ‘‘plus’’ at the end of para4 graph (14), by striking the period at the end of 

5 paragraph (15) and inserting ‘‘, plus’’, and by add6 ing at the end thereof the following new paragraph: 

7 ‘‘(16) volunteer education services credit deter8 mined under section 45G(a).’’. 

9 (2) LIMITATION ON CARRYBACK.—Subsection 

10 (d) of section 39 of such Code is amended by adding 

11 at the end the following new paragraph: 

12 ‘‘(11) NO CARRYBACK OF VOLUNTEER EDU13 CATION SERVICES CREDIT BEFORE EFFECTIVE

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

15 any taxable year which is attributable to the credit 

16 determined under section 45G may be carried back 

17 to any taxable year ending before the date of the en18 actment of this paragraph.’’. 

19 (3) DEDUCTION FOR CERTAIN UNUSED BUSI20 NESS CREDITS.—Subsection (c) of section 196 of 

21 such Code is amended by striking ‘‘and’’ at the end 

22 of paragraph (9), by striking the period at the end 

23 of paragraph (10) and inserting ‘‘, and’’, and by 

24 adding after paragraph (10) the following new para25 graph: 
5

•HR 3590 IH 

1 ‘‘(11) the volunteer education services credit de2 termined under section 45G(a).’’. 

3 (d) CLERICAL AMENDMENT.—The table of sections 

4 for subpart D of part IV of subchapter A of chapter 1 

5 of such Code is amended by inserting after the item relat6 ing to section 45F the following new item:

‘‘Sec. 45G. Employer credit for employee volunteer services in 

grades K–12.’’.

7 (e) EFFECTIVE DATE.—The amendments made by 

8 this section shall apply to taxable years beginning after 

9 the date of the enactment of this Act. 

10 (f) STUDY.—The Secretary of Education and the 

11 Secretary of the Treasury shall jointly conduct a study 

12 of the effect of the credit under section 45G of the Inter13 nal Revenue Code of 1986, as added by this Act, on the 

14 providing of volunteer services to which such credit ap15 plies. The results of such study, together with any rec16 ommendations for improving the effectiveness of such 

17 credit, shall be submitted to the Congress not later than 

18 the date which is 2 years after the date of the enactment 

19 of this Act.

Æ