I

103D CONGRESS

2D SESSION H. R. 4207

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

against income tax for providing work experiences for high school juniors

and seniors for which the students receive credit toward graduation.

IN THE HOUSE OF REPRESENTATIVES

APRIL 13, 1994

Mr. RICHARDSON 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 businesses a credit against income tax for providing work

experiences for high school juniors and seniors for which

the students receive credit toward graduation.

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 ‘‘Student and Business

5 Partnership for Credit Act of 1994’’.
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1 SEC. 2. CREDIT FOR PROVIDING EDUCATIONAL WORK EX2 PERIENCES FOR HIGH SCHOOL JUNIORS AND

3 SENIORS.

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

6 1986 (relating to business related credits) is amended by

7 adding at the end the following new section:

8 ‘‘SEC. 45C. EDUCATIONAL WORK EXPERIENCES FOR HIGH

9 SCHOOL STUDENTS.

10 ‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec11 tion 38, in the case of a taxpayer engaged in a trade or

12 business, the educational work experience credit deter13 mined under this section for any taxable year is $2,000

14 for each work experience program participant whose work

15 experience period with the taxpayer ends during such tax16 able year.

17 ‘‘(b) WORK EXPERIENCE PROGRAM PARTICIPANT.—

18 For purposes of this section—

19 ‘‘(1) IN GENERAL.—The term ‘work experience

20 program participant’ means any individual who is

21 performing services for the taxpayer pursuant to a

22 qualified work experience program.

23 ‘‘(2) QUALIFIED WORK EXPERIENCE PRO24 GRAM.—The term ‘qualified work experience pro25 gram’ means any program if—
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1 ‘‘(A) the program is operated by a local

2 school system,

3 ‘‘(B) only qualified students may partici4 pate in the program,

5 ‘‘(C) the program places qualified students

6 with 1 or more local business for—

7 ‘‘(i) a work experience that is deter8 mined by the student’s high school prin9 cipal to be appropriate to the educational

10 needs of the student,

11 ‘‘(ii) a minimum of 10, and a maxi12 mum of 20, hours per week, and

13 ‘‘(iii) a period not to exceed 5 months

14 during any school year,

15 ‘‘(D) each participant in the program re16 ceives credit toward high school graduation for

17 satisfactory participation in the program,

18 ‘‘(E) participants in the program do not

19 receive compensation from any source for serv20 ices performed for any business pursuant to the

21 program,

22 ‘‘(F) the program requires each business

23 receiving a student pursuant to the program to

24 provide such supervision of the student’s work

25 experience, and such reports to the student’s
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1 high school principal with respect to such expe2 rience, as the such principal may require, and

3 ‘‘(G) such program meets such other re4 quirements as may be prescribed by the Sec5 retary (after consultation with the Secretary of

6 Education).

7 ‘‘(3) QUALIFIED STUDENT.—The term ‘quali8 fied student’ means any full-time student enrolled in

9 the 11th or 12th grade at a high school.

10 ‘‘(4) HIGH SCHOOL.—The term ‘high school’

11 means a secondary school (as defined in section

12 1471(21) of the Elementary and Secondary Edu13 cation Act of 1965).

14 ‘‘(c) WORK EXPERIENCE PERIOD.—For purposes of

15 subsection (a), the term ‘work experience period’ means

16 the period that an individual performs services for the tax17 payer pursuant to a qualified work experience program.’’

18 (b) CREDIT TO BE PART OF GENERAL BUSINESS

19 CREDIT.—Subsection (b) of section 38 of such Code (re20 lating to general business credit) is amended by striking

21 ‘‘plus’’ at the end of paragraph (10), by striking the period

22 at the end of paragraph (11) and inserting ‘‘, plus’’, and

23 by adding at the end the following new paragraph:
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1 ‘‘(12) in the case of a taxpayer engaged in a

2 trade or business, the educational work experience

3 credit determined under section 45C(a).’’

4 (c) CLERICAL AMENDMENT.—The table of sections

5 for such subpart D of part IV of subchapter A of chapter

6 1 of such Code is amended by adding at the end the follow7 ing new item:

‘‘Sec. 45C. Educational work experiences for high school students.’’

8 (d) EFFECTIVE DATE.—The amendments made by

9 this section shall apply to taxable years ending after Au10 gust 31, 1994, with respect to work experience periods

11 ending after such date.

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