I

103D CONGRESS

1ST SESSION H. R. 2906

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

contributions made by businesses to public elementary and secondary

schools located in poverty areas.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 5, 1993

Mr. TUCKER (for himself, Mr. DIXON, Mr. MARTINEZ, Mr. MFUME, Mr.

REYNOLDS, Mr. MINETA, Mr. HORN, Mr. EDWARDS of California, Mr.

SERRANO, Mr. TORRES, Mr. DELLUMS, Mr. STOKES, Mr. LEWIS of Georgia, Miss COLLINS of Michigan, and Mr. FAZIO) 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

credit for charitable contributions made by businesses

to public elementary and secondary schools located in

poverty areas.

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 ‘‘Adopt-A-School Act

5 of 1993’’.
2

•HR 2906 IH

1 SEC. 2. CREDIT FOR CERTAIN BUSINESS CONTRIBUTIONS

2 TO PUBLIC ELEMENTARY AND SECONDARY

3 SCHOOLS LOCATED IN POVERTY AREAS.

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

6 1986 is amended by adding at the end thereof the follow7 ing new section:

8 ‘‘SEC. 30A. CERTAIN BUSINESS CONTRIBUTIONS TO PUBLIC

9 ELEMENTARY AND SECONDARY SCHOOLS LO10 CATED IN POVERTY AREAS.

11 ‘‘(a) IN GENERAL.—In the case of a taxpayer en12 gaged in a trade or business, there shall be allowed as

13 a credit against the tax imposed by this chapter for the

14 taxable year an amount equal to 70 percent of the quali15 fied public school contributions made during such taxable

16 year.

17 ‘‘(b) QUALIFIED PUBLIC SCHOOL CONTRIBUTION.—

18 ‘‘(1) IN GENERAL.—The term ‘qualified public

19 school contribution’ means—

20 ‘‘(A) any contribution to a qualified public

21 school for its exclusive use if—

22 ‘‘(i) such contribution is—

23 ‘‘(I) cash to be used by such

24 school for qualified tangible personal

25 property or for additions or improve26 ments to such school, or
3

•HR 2906 IH

1 ‘‘(II) qualified tangible personal

2 property, and

3 ‘‘(ii) the taxpayer receives from the

4 donee a written statement representing

5 that such school is a qualified public school

6 and that the contribution will be used in

7 accordance with this subparagraph, and

8 ‘‘(B) any amount paid or incurred by the

9 taxpayer for training services provided to stu10 dents attending a qualified public school as part

11 of an educational program approved by such

12 school.

13 In the case of a contribution of property, the

14 amount taken into account under subsection (a)

15 shall be the amount which would (but for subsection

16 (c)) be allowed as a deduction under section 170 for

17 such contribution.

18 ‘‘(2) QUALIFIED PUBLIC SCHOOL.—The term

19 ‘qualified public school’ means any school for the

20 education of students at or below the 12 grade level

21 if—

22 ‘‘(A) such school is owned and operated by

23 a local government,

24 ‘‘(B) such school is located in a population

25 census tract having a poverty rate of at least 15
4

•HR 2906 IH

1 percent (as determined using the most recent

2 decennial census data available), and

3 ‘‘(C) the funding provided for such school

4 from government sources is not reduced by rea5 son of any contribution to which this section

6 applies.

7 ‘‘(3) QUALIFIED TANGIBLE PERSONAL PROP8 ERTY.—The term ‘qualified tangible personal prop9 erty’ means tangible personal property to be used by

10 students attending the qualified public school or by

11 teachers at such school as part of the educational

12 program of such school.

13 ‘‘(4) AREAS NOT WITHIN CENSUS TRACTS.—In

14 the case of an area which is not tracted for popu15 lation census tracts, the equivalent county divisions

16 (as defined by the Bureau of the Census for pur17 poses of defining poverty areas) shall be used for

18 purposes of paragraph (2)(B).

19 ‘‘(c) DENIAL OF DEDUCTION.—No deduction shall be

20 allowed under provision of this chapter for any amount

21 which is taken into account in determining the credit

22 under this section.

23 ‘‘(d) APPLICATION WITH OTHER CREDITS.—The

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

25 not exceed the excess (if any) of—
5

•HR 2906 IH

1 ‘‘(1) the regular tax for the taxable year re2 duced by the sum of the credits allowable under sub3 part A and the preceding sections of this subpart,

4 and

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

6 year.’’.

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

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

9 of such Code is amended by adding at the end thereof

10 the following new item:

‘‘Sec. 30A. Certain business contributions to public elementary

and secondary schools located in poverty areas.’’.

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

12 this section shall apply to contributions made after the

13 date of the enactment of this Act in taxable years ending

14 after such date.

Æ