I 

112TH CONGRESS 

1ST SESSION H. R. 2549 

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

for donations for vocational educational purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 14, 2011 

Mr. YOUNG of Alaska (for himself, Mr. COURTNEY, and Mr. MANZULLO) 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 

business credit for donations for vocational educational 

purposes. 

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 ‘‘Public Private Voca5 tional Partnership Act of 2011’’. 


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1 SEC. 2. DONATIONS TO SECONDARY SCHOOLS AND COMMU2 NITY COLLEGES FOR VOCATIONAL EDU3 CATION PURPOSES. 

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. 45S. DONATIONS TO SECONDARY SCHOOLS AND COM9 MUNITY COLLEGES FOR VOCATIONAL EDU10 CATION PURPOSES. 

11 ‘‘(a) IN GENERAL.—For purposes of section 38, in 

12 the case of a corporation (as defined in section 

13 170(e)(4)(D)), the vocational education donation credit 

14 determined under this section for the taxable year is an 

15 amount equal to the sum of— 

16 ‘‘(1) 90 percent of the fair market value of 

17 qualified property donations made during the tax18 able year, plus 

19 ‘‘(2) the aggregate of the intern credit amounts. 

20 ‘‘(b) LIMITATIONS.— 

21 ‘‘(1) QUALIFIED PROPERTY DONATIONS.—The 

22 amount allowed as a credit under subsection (a)(1) 

23 shall not exceed $50,000. 

24 ‘‘(2) INTERN CREDIT AMOUNT.— 

25 ‘‘(A) IN GENERAL.—The amount allowed 

26 as a credit under subsection (a)(2) with respect 


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1 to a qualified intern shall be the amount equal 

2 to $100 multiplied by the number of months 

3 during the taxable year in which the intern was 

4 an employee of the taxpayer. 

5 ‘‘(B) AGGREGATE PER INTERN CREDIT

6 AMOUNTS.—The aggregate amount allowed to 

7 the taxpayer as a credit under subsection (a)(2) 

8 for the taxable year shall not exceed $6,000. 

9 ‘‘(c) QUALIFIED PROPERTY DONATIONS.—For pur10 poses of this section, the term ‘qualified property dona11 tions’ means a charitable contribution (as defined in sec12 tion 170(c)) of tangible personal property if— 

13 ‘‘(1) the contribution is to an educational orga14 nization described in section 170(b)(1)(A)(ii) which 

15 is a secondary school, community college, or tech16 nical school, 

17 ‘‘(2) substantially all of the use of the property 

18 by the donee is for use within the United States for 

19 educational purposes that are related to the purpose 

20 or function of the donee, 

21 ‘‘(3) the property is not transferred by the 

22 donee in exchange for money, other property, or 

23 services, except for shipping, installation and trans24 fer costs, 


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1 ‘‘(4) the property will fit productively into the 

2 donee’s education plan, 

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

4 property will be in accordance with the provisions of 

5 paragraphs (2), (3), and (4), and 

6 ‘‘(6) the property meets such standards, if any, 

7 as the Secretary may prescribe by regulation to as8 sure that the property meets minimum functionality 

9 and suitability standards for educational purposes. 

10 ‘‘(d) QUALIFIED INTERN.—For purposes of this sec11 tion— 

12 ‘‘(1) IN GENERAL.—The term ‘qualified intern’ 

13 means an individual— 

14 ‘‘(A) who is enrolled full-time as a student 

15 in a secondary school or community college, and 

16 ‘‘(B) who is employed for not more than 

17 20 hours per week by the taxpayer as part of 

18 a vocational education course approved by such 

19 school or college. 

20 ‘‘(2) SECONDARY SCHOOL.—The term ‘sec21 ondary school’ means a secondary school (as defined 

22 by section 9101(38) of the Elementary and Sec23 ondary Education Act of 1965 (20 U.S.C. 7801(38)) 

24 which offers a program of education in vocational 

25 education. 


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1 ‘‘(3) COMMUNITY COLLEGE.—The term ‘com2 munity college’ means a public or nonprofit private 

3 postsecondary regionally accredited institution that 

4 provides not less than a 2-year program of instruc5 tion that is acceptable for full credit toward a bach6 elor’s degree at an accredited institution and whose 

7 highest degree offered is predominantly the associate 

8 degree. 

9 ‘‘(e) AGGREGATION RULE.—For purposes of sub10 section (b), all persons treated as a single employer under 

11 subsection (a) or (b) of section 52 or subsection (n) or 

12 (o) of section 414 shall be treated as one person. 

13 ‘‘(f) COORDINATION WITH SECTION 170(b).—The 

14 limitation which would (but for this subsection) apply 

15 under section 170(b) for any taxable year shall be reduced 

16 (but not below zero) by the fair market value of property 

17 taken into account in determining the credit allowed under 

18 subsection (a)(1) for such year.’’. 

19 (b) CREDIT TO BE PART OF GENERAL BUSINESS

20 CREDIT.—Subsection (b) of section 38 of such Code (re21 lating to general business credit) is amended by striking 

22 ‘‘plus’’ at the end of paragraph (35), by striking the period 

23 at the end of paragraph (36) and inserting ‘‘, plus’’, and 

24 by adding at the end the following new paragraph: 


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1 ‘‘(37) in the case of a corporation (as defined 

2 in section 170(e)(4)(D)), the vocational education 

3 donation credit determined under section 45S(a).’’. 

4 (c) DENIAL OF DOUBLE BENEFIT.—Section 280C of 

5 such Code (relating to certain expenses for which credits 

6 are allowable) is amended by adding at the end the fol7 lowing new subsection: 

8 ‘‘(i) VOCATIONAL EDUCATION DONATIONS.—The de9 duction otherwise allowed for amounts taken into account 

10 under section 45S shall be reduced by the amount of the 

11 credit determined under section 45S(a) with respect to 

12 such amounts.’’. 

13 (d) CONFORMING AMENDMENT.—The table of sec14 tions for subpart D of part IV of subchapter A of chapter 

15 1 of such Code is amended by adding at the end the fol16 lowing new item: 

‘‘45S. Donations to secondary schools and community colleges for vocational 

education purposes.’’. 

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

18 this section shall apply to taxable years beginning after 

19 December 31, 2011. 

Æ 


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