II 

110TH CONGRESS 

1ST SESSION S. 833 

To make the United States competitive in a global economy. 

IN THE SENATE OF THE UNITED STATES 

MARCH 9, 2007 

Mr. COLEMAN (for himself and Mr. PRYOR) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To make the United States competitive in a global economy. 

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 (a) IN GENERAL.—This Act may be cited as the 

5 ‘‘Competitiveness through Education, Technology, and 

6 Enterprise Act of 2007’’ or the ‘‘COMPETE Act of 

7 2007’’. 

8 (b) TABLE OF CONTENTS.—The table of contents of 

9 this Act is as follows: 

Sec. 1. Short title. 

TITLE I—RESEARCH AND DEVELOPMENT INCENTIVES 

Sec. 101. Permanent extension of research credit. 


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TITLE II—WORKFORCE DEVELOPMENT INCENTIVES 

Sec. 201. Credit for information and communications technology education and 

training program expenses. 

Sec. 202. Eligible educational institution. 

Sec. 203. SBIR–STEM Workforce Development Grant Pilot Program. 

TITLE III—PUBLIC PARTNERSHIP PROVISIONS 

Sec. 301. Alternative percentage limitation for corporate charitable contributions to the mathematics and science partnership program. 

TITLE IV—EDUCATION PROVISIONS 

Sec. 401. Federal Pell Grants. 

Sec. 402. Matching funds program to promote American competitiveness 

through graduate education. 

Sec. 403. Mathematics and science partnership bonus grants. 

1 TITLE I—RESEARCH AND 

2 DEVELOPMENT INCENTIVES 

3 SEC. 101. PERMANENT EXTENSION OF RESEARCH CREDIT. 

4 (a) IN GENERAL.—Section 41 of the Internal Rev5 enue Code of 1986 is amended by striking subsection (h). 

6 (b) CONFORMING AMENDMENT.—Paragraph (1) of 

7 section 45C(b) of such Code is amended by striking sub8 paragraph (D). 

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

10 this section shall apply to amounts paid or incurred after 

11 the date of the enactment of this Act. 


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1 TITLE II—WORKFORCE 

2 DEVELOPMENT INCENTIVES 

3 SEC. 201. CREDIT FOR INFORMATION AND COMMUNICA4 TIONS TECHNOLOGY EDUCATION AND TRAIN5 ING PROGRAM EXPENSES. 

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

8 1986 is amended by adding at the end the following: 

9 ‘‘SEC. 30D. INFORMATION AND COMMUNICATIONS TECH10 NOLOGY EDUCATION AND TRAINING PRO11 GRAM EXPENSES. 

12 ‘‘(a) ALLOWANCE OF CREDIT.— 

13 ‘‘(1) IN GENERAL.—There shall be allowed as a 

14 credit against the tax imposed by this chapter for 

15 the taxable year an amount equal to 50 percent of 

16 information and communications technology edu17 cation and training program expenses paid or in18 curred by the taxpayer for the benefit of— 

19 ‘‘(A) in the case of a taxpayer engaged in 

20 a trade or business, an employee of the tax21 payer, or 

22 ‘‘(B) in the case of a taxpayer who is an 

23 individual not so engaged, such individual. 

24 ‘‘(2) COORDINATION OF CREDITS.—Credit shall 

25 be allowable to the employer with respect to an emVerDate Aug 31 2005 19:09 Mar 10, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S833.IS S833

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1 ployee only to the extent that the employee assigns 

2 some or all of the limitation applicable to such em3 ployee under subsection (b) to such employer. 

4 ‘‘(b) LIMITATIONS.— 

5 ‘‘(1) IN GENERAL.—The amount of expenses 

6 with respect to any individual which may be taken 

7 into account under subsection (a) for the taxable 

8 year shall not exceed $4,000. 

9 ‘‘(2) INCREASE IN CREDIT AMOUNT FOR PAR10 TICIPATION IN CERTAIN PROGRAMS AND FOR CER11 TAIN INDIVIDUALS.—Paragraph (1) shall be applied 

12 by substituting ‘$5,000’ for ‘$4,000’ in the case of 

13 expenses— 

14 ‘‘(A) with respect to a program operated— 

15 ‘‘(i) by an employer who has 200 or 

16 fewer employees for each business day in 

17 each of 20 or more calendar weeks in the 

18 current or preceding calendar year, 

19 ‘‘(ii) in an empowerment zone or en20 terprise community designated under part 

21 I of subchapter U or a renewal community 

22 designated under part I of subchapter X, 

23 ‘‘(iii) in a school district in which at 

24 least 50 percent of the students attending 

25 schools in such district are eligible for free 


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1 or reduced-cost lunches under the school 

2 lunch program established under the Rich3 ard B. Russell National School Lunch Act, 

4 ‘‘(iv) in an area designated as a dis5 aster area by the Secretary of Agriculture 

6 under section 321 of the Consolidated 

7 Farm and Rural Development Act or by 

8 the President under the Robert T. Stafford 

9 Disaster Relief and Emergency Assistance 

10 Act in the taxable year or the 4 preceding 

11 taxable years, 

12 ‘‘(v) in a rural enterprise community 

13 designated under section 766 of the Agri14 culture, Rural Development, Food and 

15 Drug Administration, and Related Agen16 cies Appropriations Act, 1999 (112 Stat. 

17 2681–37), 

18 ‘‘(vi) in an area designated by the 

19 Secretary of Agriculture as a Rural Eco20 nomic Area Partnership Zone, or 

21 ‘‘(vii) in an area over which an Indian 

22 tribal government (as defined in section 

23 7701(a)(40)) has jurisdiction, or 

24 ‘‘(B) in the case of an individual with a 

25 disability. 


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1 ‘‘(c) INFORMATION TECHNOLOGY EDUCATION AND

2 TRAINING PROGRAM EXPENSES.—For purposes of this 

3 section— 

4 ‘‘(1) IN GENERAL.—The term ‘information 

5 technology education and training program expenses’ 

6 means expenses paid or incurred by reason of the 

7 participation of the taxpayer (or any employee of the 

8 taxpayer) in any information and communications 

9 technology education and training program. Such ex10 penses shall include expenses paid in connection 

11 with— 

12 ‘‘(A) course work, 

13 ‘‘(B) certification testing, 

14 ‘‘(C) programs carried out under the Act 

15 of August 16, 1937 (50 Stat. 664, chapter 663; 

16 29 U.S.C. 50 et seq.) which are registered by 

17 the Department of Labor, and 

18 ‘‘(D) other expenses that are essential to 

19 assessing skill acquisition. 

20 ‘‘(2) INFORMATION TECHNOLOGY EDUCATION

21 AND TRAINING PROGRAM.—The term ‘information 

22 technology education and training program’ means a 

23 training program in information and communica24 tions technology workplace disciplines or other skill 

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1 credited college, university, private career school, 

2 postsecondary educational institution, a commercial 

3 information technology provider, or an employer4 owned information technology training organization. 

5 ‘‘(3) COMMERCIAL INFORMATION TECHNOLOGY

6 TRAINING PROVIDER.—The term ‘commercial infor7 mation technology training provider’ means a private 

8 sector organization providing an information and 

9 communications technology education and training 

10 program. 

11 ‘‘(4) EMPLOYER-OWNED INFORMATION TECH12 NOLOGY TRAINING ORGANIZATION.—The term ‘em13 ployer-owned information technology training organi14 zation’ means a private sector organization that pro15 vides information technology training to its employ16 ees using internal training development and delivery 

17 personnel. The training programs must use industry18 recognized training disciplines and evaluation meth19 ods, comparable to institutional and commercial 

20 training providers. 

21 ‘‘(d) DENIAL OF DOUBLE BENEFIT.— 

22 ‘‘(1) DISALLOWANCE OF OTHER CREDITS AND

23 DEDUCTIONS.—No deduction or credit shall be al24 lowed under any other provision of this chapter for 


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1 expenses taken into account in determining the cred2 it under this section. 

3 ‘‘(2) REDUCTION FOR HOPE AND LIFETIME

4 LEARNING CREDITS.—The amount taken into ac5 count under subsection (a) shall be reduced by the 

6 information technology education and training pro7 gram expenses taken into account in determining the 

8 credits under section 25A. 

9 ‘‘(e) CERTAIN RULES MADE APPLICABLE.—For pur10 poses of this section, rules similar to the rules of section 

11 45A(e)(2) and subsections (c), (d), and (e) of section 52 

12 shall apply. 

13 ‘‘(f) APPLICATION WITH OTHER CREDITS.—The 

14 credit allowed by subsection (a) for any taxable year shall 

15 not exceed the excess (if any) of— 

16 ‘‘(1) the regular tax for the taxable year re17 duced by the sum of the credits allowable under the 

18 subpart A and the previous sections of this subpart, 

19 over 

20 ‘‘(2) the tentative minimum tax for the taxable 

21 year.’’. 

22 (b) CLERICAL AMENDMENT.—The table of sections 

23 for subpart B of part IV of subchapter A of chapter 1 

24 of the Internal Revenue Code of 1986 is amended by add25 ing at the end the following: 


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‘‘Sec. 30D. Information and communications technology education and training 

program expenses.’’. 

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

2 this section shall apply to amounts paid or incurred in tax3 able years beginning after December 31, 2006. 

4 SEC. 202. ELIGIBLE EDUCATIONAL INSTITUTION. 

5 (a) IN GENERAL.—Section 25A(f)(2) of the Internal 

6 Revenue Code of 1986 (relating to eligible educational in7 stitution) is amended to read as follows: 

8 ‘‘(2) ELIGIBLE EDUCATIONAL INSTITUTION.— 

9 The term ‘eligible educational institution’ means— 

10 ‘‘(A) an institution— 

11 ‘‘(i) which is described in section 

12 101(b) or 102(a) of the Higher Education 

13 Act of 1965, and 

14 ‘‘(ii) which is eligible to participate in 

15 a program under title IV of such Act, or 

16 ‘‘(B) a commercial information and com17 munications technology training provider (as 

18 defined in section 30D(c)(3)).’’. 

19 (b) CONFORMING AMENDMENT.—The second sen20 tence of section 221(d)(2) of the Internal Revenue Code 

21 of 1986 is amended by striking ‘‘section 25A(f)(2)’’ and 

22 inserting ‘‘section 25A(f)(2)(A)’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2006. 

4 SEC. 203. SBIR–STEM WORKFORCE DEVELOPMENT GRANT 

5 PILOT PROGRAM. 

6 (a) DEFINITIONS.—In this section— 

7 (1) the term ‘‘Administrator’’ means the Ad8 ministrator of the Small Business Administration; 

9 (2) the term ‘‘eligible entity’’ means a grantee 

10 under the SBIR Program that provides an intern11 ship program for STEM college students; 

12 (3) the terms ‘‘Phase I’’ and ‘‘Phase II’’ mean 

13 Phase I and Phase II grants under the SBIR Pro14 gram, respectively; 

15 (4) the term ‘‘pilot program’’ means the SBIR– 

16 STEM Workforce Development Grant Pilot Program 

17 established under subsection (b); 

18 (5) the term ‘‘SBIR Program’’ has the meaning 

19 given that term in section 9(e) of the Small Business 

20 Act (15 U.S.C. 638(e)); and 

21 (6) the term ‘‘STEM college student’’ means a 

22 college student in the field of science, technology, en23 gineering, or math. 

24 (b) PILOT PROGRAM ESTABLISHED.—From amounts 

25 made available to carry out this section, the Administrator 


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1 shall establish an SBIR–STEM Workforce Development 

2 Grant Pilot Program to encourage the business commu3 nity to provide workforce development opportunities to 

4 STEM college students, by providing an SBIR bonus 

5 grant to eligible entities. 

6 (c) AWARDS.—A bonus grant to an eligible entity 

7 under the pilot program shall be in an amount equal to 

8 10 percent of either a Phase I or Phase II grant, as appli9 cable, with a total award maximum of not more than 

10 $10,000 per year. 

11 (d) EVALUATION.—Following the fifth year of fund12 ing under this section, the Administrator shall submit a 

13 report to Congress on the results of the pilot program. 

14 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated to carry out this sec16 tion— 

17 (1) $1,000,000 for fiscal year 2007; 

18 (2) $1,000,000 for fiscal year 2008; 

19 (3) $1,000,000 for fiscal year 2009; 

20 (4) $1,000,000 for fiscal year 2010; and 

21 (5) $1,000,000 for fiscal year 2011. 


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1 TITLE III—PUBLIC 

2 PARTNERSHIP PROVISIONS 

3 SEC. 301. ALTERNATIVE PERCENTAGE LIMITATION FOR 

4 CORPORATE CHARITABLE CONTRIBUTIONS 

5 TO THE MATHEMATICS AND SCIENCE PART6 NERSHIP PROGRAM. 

7 (a) IN GENERAL.—Section 170(b) of the Internal 

8 Revenue Code of 1986 (related to percentage limitations) 

9 is amended by adding at the end the following new para10 graph: 

11 ‘‘(3) SPECIAL RULE FOR CORPORATE CON12 TRIBUTIONS TO THE MATHEMATICS AND SCIENCE

13 PARTNERSHIP PROGRAM.— 

14 ‘‘(A) IN GENERAL.—In the case of a cor15 poration which makes an eligible mathematics 

16 and science contribution— 

17 ‘‘(i) the limitation under paragraph 

18 (2) shall apply separately with respect to 

19 all such contributions and all other chari20 table contributions, and 

21 ‘‘(ii) paragraph (2) shall be applied 

22 with respect to all eligible mathematics and 

23 science contributions by substituting ‘15 

24 percent’ for ‘10 percent’. 


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1 ‘‘(B) ELIGIBLE MATHEMATICS AND

2 SCIENCE CONTRIBUTION.— 

3 ‘‘(i) IN GENERAL.—For purposes of 

4 this paragraph, the term ‘eligible mathe5 matics and science contribution’ means a 

6 charitable contribution (other than a con7 tribution of used equipment) to a qualified 

8 partnership for the purpose of an activity 

9 described in section 2202(c) of the Ele10 mentary and Secondary Education Act of 

11 1965. 

12 ‘‘(ii) QUALIFIED PARTNERSHIP.—The 

13 term ‘qualified partnership’ means an eligi14 ble partnership (within the meaning of sec15 tion 2201(b)(1) of the Elementary and 

16 Secondary Education Act of 1965), but 

17 only to the extent that such partnership 

18 does not include a person other than a per19 son described in paragraph (1)(A).’’. 

20 (b) EFFECTIVE DATE.—The amendment made by 

21 this section shall apply to contributions made after the 

22 date of the enactment of this Act. 


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1 TITLE IV—EDUCATION 

2 PROVISIONS 

3 SEC. 401. FEDERAL PELL GRANTS. 

4 It is the sense of the Senate that the maximum Fed5 eral Pell Grant should be increased to— 

6 (1) $4,600 for academic year 2008–2009; 

7 (2) $4,800 for academic year 2009–2010; 

8 (3) $5,000 for academic year 2010–2011; 

9 (4) $5,200 for academic year 2011–2012; and 

10 (5) $5,400 for academic year 2012–2013. 

11 SEC. 402. MATCHING FUNDS PROGRAM TO PROMOTE AMER12 ICAN COMPETITIVENESS THROUGH GRAD13 UATE EDUCATION. 

14 (a) PURPOSE.—The purpose of this section is to pro15 mote American economic competitiveness and job creation 

16 by— 

17 (1) assisting graduate students studying the 

18 sciences, technology, engineering, and mathematics; 

19 (2) advancing education in the sciences, tech20 nology, engineering, and mathematics; 

21 (3) stimulating greater links between private in22 dustry and graduate education; and 

23 (4) enabling the Office of Science of the De24 partment of Energy to establish a matching funds 

25 program for eligible institutions of higher education. 


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1 (b) DEFINITIONS.—In this section: 

2 (1) ELIGIBLE INSTITUTION OF HIGHER EDU3 CATION.—The term ‘‘eligible institution of higher 

4 education’’ means an institution of higher education, 

5 as defined in section 101(a) of the Higher Education 

6 Act of 1965 (20 U.S.C. 1001), that offers an estab7 lished program of post-baccalaureate study leading 

8 to a graduate degree in the sciences, technology, en9 gineering, or mathematics. 

10 (2) SECRETARY.—The term ‘‘Secretary’’ means 

11 the Secretary of Energy. 

12 (c) GRANTS.— 

13 (1) GRANTS AUTHORIZED.—The Secretary, act14 ing through the Undersecretary for Energy, Science, 

15 and Environment, is authorized to award grants, on 

16 a competitive basis, to eligible institutions of higher 

17 education to enable the eligible institutions of higher 

18 education to carry out the authorized activities de19 scribed in subsection (e). 

20 (2) MATCHING FUNDS REQUIRED.—In order to 

21 receive a grant under this subsection, an eligible in22 stitution of higher education shall agree to provide 

23 matching funds, toward the cost of the authorized 

24 activities to be assisted under the grant, in an 


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1 amount equal to 25 percent of the funds received 

2 under the grant. 

3 (3) AWARD CONSIDERATIONS.—In awarding 

4 grants under this subsection, the Secretary shall 

5 take into consideration— 

6 (A) the demonstrated commitment of the 

7 eligible institution of higher education to pro8 viding matching funds (including tuition remis9 sion, tuition waivers, and other types of institu10 tional support) toward the cost of the author11 ized activities to be assisted under the grant; 

12 (B) the demonstrated capacity of the eligi13 ble institution of higher education to raise 

14 matching funds from private sources; 

15 (C) the demonstrated ability of the eligible 

16 institution of higher education to work with pri17 vate corporations and organizations to promote 

18 economic competitiveness and job creation; 

19 (D) the demonstrated ability of the eligible 

20 institution of higher education to increase the 

21 number of graduates of the eligible institution 

22 of higher education’s graduate programs in the 

23 sciences, technology, engineering, or mathe24 matics with the interdisciplinary background 

25 and the technical, professional, and personal 


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1 skills needed to contribute to American com2 petitiveness and job creation in the future; 

3 (E) the potential for the grant assistance 

4 to increase the number of graduates of the eli5 gible institution of higher education’s graduate 

6 programs in the sciences, technology, engineer7 ing, or mathematics; and 

8 (F) the demonstrated track record of the 

9 eligible institution of higher education in out10 reach and mentoring activities that have the ex11 pressed purpose of recruiting and retaining 

12 women, recognized minorities, and individuals 

13 with disabilities in the sciences, technology, en14 gineering, or mathematics. 

15 (4) AMOUNT.—The Secretary shall award each 

16 grant under this subsection in an amount that is not 

17 more than $1,000,000 for each fiscal year. 

18 (5) EQUITABLE DISTRIBUTION.—In awarding 

19 grants under this subsection, the Secretary shall en20 sure— 

21 (A) an equitable geographic distribution of 

22 the grants; and 

23 (B) an equitable distribution of the grants 

24 among public and private eligible institutions of 

25 higher education. 


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1 (d) APPLICATIONS.—Each eligible institution of high2 er education desiring a grant under this section shall sub3 mit an application to the Secretary at such time, in such 

4 manner, and accompanied by such information and assur5 ances as the Secretary may require. Each such application 

6 shall describe— 

7 (1) the authorized activities under subsection 

8 (e) for which assistance is sought; 

9 (2) the source and amount of the matching 

10 funds to be provided; and 

11 (3) the amount of funds raised by the eligible 

12 institution of higher education from private sources 

13 that will be allocated and spent to carry out the au14 thorized activities described in subsection (e). 

15 (e) AUTHORIZED ACTIVITIES; AGREEMENT.—Each 

16 eligible institution of higher education desiring a grant 

17 under this section shall enter into a written agreement 

18 with the Secretary under which the eligible institution of 

19 higher education agrees to use all of the grant funds— 

20 (1) to provide stipends or other financial assist21 ance (such as tuition assistance and related ex22 penses) for students who are enrolled in graduate 

23 programs in the sciences, technology, engineering, or 

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1 cation, as described in the application submitted 

2 under subsection (d); and 

3 (2) to support outreach and mentoring activities 

4 to increase the participation of underrepresented 

5 groups in the sciences, technology, engineering, or 

6 mathematics at all levels or any level of education, 

7 including elementary, secondary, and post-secondary 

8 education, as described in the application submitted 

9 under subsection (d). 

10 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated to carry out this sec12 tion— 

13 (1) $50,000,000 for fiscal year 2008; 

14 (2) $60,000,000 for fiscal year 2009; 

15 (3) $70,000,000 for fiscal year 2010; 

16 (4) $80,000,000 for fiscal year 2011; and 

17 (5) $90,000,000 for fiscal year 2012. 

18 SEC. 403. MATHEMATICS AND SCIENCE PARTNERSHIP 

19 BONUS GRANTS. 

20 Part B of title II of the Elementary and Secondary 

21 Education Act of 1965 (20 U.S.C. 6661 et seq.) is amend22 ed by adding at the end the following: 


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1 ‘‘SEC. 2204. MATHEMATICS AND SCIENCE PARTNERSHIP 

2 BONUS GRANTS. 

3 ‘‘(a) IN GENERAL.—From amounts appropriated 

4 under subsection (d), the Secretary shall award a grant— 

5 ‘‘(1) for each of the school years 2007–2008 

6 through 2016–2017, to each of the 5 elementary 

7 schools and each of the 5 secondary schools in each 

8 State, whose students demonstrate the most im9 provement in mathematics, as measured by the im10 provement in the students’ average score on the 

11 State’s assessments in mathematics for the school 

12 year for which the grant is awarded, as compared to 

13 the school year preceding the school year for which 

14 the grant is awarded; and 

15 ‘‘(2) for each of the school years 2011–2012 

16 through 2016–2017, to each of the 5 elementary 

17 schools and each of the 5 secondary schools in each 

18 State, whose students demonstrate the most im19 provement in science, as measured by the improve20 ment in the students’ average score on the State’s 

21 assessments in science for the school year for which 

22 the grant is awarded, as compared to the school year 

23 preceding the school year for which the grant is 

24 awarded. 

25 ‘‘(b) GRANT AMOUNT.—The amount of each grant 

26 awarded under this section shall be $500,000. 


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1 ‘‘(c) APPLICABILITY.—Sections 2201, 2202, and 

2 2203 shall not apply to this section. 

3 ‘‘(d) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section 

5 $130,000,000 for each of the fiscal years 2008 through 

6 2011, and $260,000,000 for each of the fiscal years 2012 

7 through 2017.’’. 

Æ 


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