STEM Education Opportunity Act

To amend the Internal Revenue Code of 1986 to provide incentives for education in the areas of science, technology, engineering, and mathematics. 1. Short title This Act may be cited as the STEM Education Opportunity Act 2. Deduction for STEM qualified higher education expenses (a) In general Part VII of subchapter B of chapter 1 222A. STEM qualified higher education expenses (a) In general In the case of an individual, there shall be allowed as a deduction an amount equal to the STEM higher education expenses paid by the taxpayer during the taxable year. (b) STEM higher education expenses For purposes of this section, the term STEM higher education expense 20 U.S.C. 1087ll (1) at such institution for the academic period for which the deduction under this section is being determined, (2) majoring in a course of study at such institution leading to an associate degree or higher in— (A) science, technology, engineering, or mathematics (within the meaning of section 131(g)(4) of the Higher Education Act of 1965 ( 20 U.S.C. 1015(g)(4) (B) education with a focus on any area described in subparagraph (A), and (3) who at all times during such period is making satisfactory academic progress (as defined in section 668.34 of title 34, Code of Federal Regulations, or any successor regulation) in the pursuit of such degree. (c) Definition and special rules For purposes of this section— (1) Eligible educational institution The term eligible educational institution institution of higher education 20 U.S.C. 1002 (2) Room and board included for students who are at least half-time Subsection (a) shall not apply to any costs of an individual for room and board while attending an eligible educational institution, unless such individual is an eligible individual (as defined in section 25A(b)(3)). (3) Carryforward of unused deduction If for any taxable year the deduction allowable under subsection (a) exceeds the taxpayer’s taxable income (determined without regard to this section), the amount of STEM higher education expenses of the taxpayer attributable to such excess shall be treated as STEM higher education expenses paid by the taxpayer in the succeeding taxable year. (4) Identification requirement No deduction shall be allowed under subsection (a) to a taxpayer with respect to STEM higher education expenses of an individual unless the taxpayer includes the name and taxpayer identification number of the individual on the return of tax for the taxable year. (5) Certain prepayments allowed If STEM higher education expenses are paid by the taxpayer during a taxable year for an academic period which begins during the first 3 months following such taxable year, such academic period shall be treated for purposes of this section as beginning during such taxable year. (6) Coordination with other education incentives (A) Denial of deduction if other credit elected No deduction shall be allowed under subsection (a) for any taxable year with respect to the STEM higher education expenses with respect to an individual if the taxpayer or any other person elects to have section 25A apply with respect to such individual for such year. (B) Coordination with exclusions The total amount of STEM higher education expenses shall be reduced by the amount of such expenses taken into account in determining any amount excluded under section 135, 529(c), or 530(d)(2). For purposes of the preceding sentence, the amount taken into account in determining the amount excluded under section 529(c)(1) shall not include that portion of the distribution which represents a return of any contributions to the plan. (7) Adjustment for certain scholarships Rules similar to the rules of 25A(g)(2) shall apply for purposes of this section. (8) Dependents No deduction shall be allowed under subsection (a) to any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins. (9) Nonresident aliens If the taxpayer is a nonresident alien individual for any portion of the taxable year, this section shall only apply if such individual is treated as a resident alien of the United States for purposes of this chapter by reason of an election under subsection (g) or (h) of section 6013. (d) Termination This section shall not apply to taxable years beginning more than 10 years after the date of the enactment of the STEM Education Opportunity Act. . (b) Deduction allowed whether or not taxpayer itemizes other deductions Subsection (a) of section 62 of such Code is amended by inserting after paragraph (21) the following new paragraph: (22) STEM qualified higher education expenses The deduction allowed by section 222A. . (c) Clerical amendment The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 222 the following new item: Sec. 222A. STEM qualified higher education expenses. . (d) Effective date The amendments made by this section shall apply to payments made in taxable years beginning after the date of the enactment of this Act. 3. Credits for certain contributions benefitting science, technology, engineering, and mathematics education at the elementary and secondary school level (a) In general Subpart D of part IV of subchapter A of chapter 1 45S. Contributions benefitting science, technology, engineering, and mathematics education at the elementary and secondary school level (a) In general For purposes of section 38, the elementary and secondary school STEM contributions credit determined under this section for the taxable year is an amount equal to the qualified STEM contributions made by the taxpayer during the taxable year to one or more elementary or secondary schools. (b) Maximum credit (1) Per taxpayer The amount of qualified STEM contributions made to any school which may be taken into account under this section by the taxpayer for the taxable year shall not exceed the portion of the limitation under paragraph (2) which is allocated by such school to the taxpayer for such year. (2) Per school The amount of qualified STEM contributions made to any school which may be allocated under this section by the school to all taxpayers for all taxable years shall not exceed $100,000. (c) Qualified STEM contributions For purposes of this section— (1) In general The term qualified STEM contributions (A) STEM property contributions, (B) STEM service contributions, and (C) STEM student and educator training contributions. (2) STEM property contributions (A) In general The term STEM property contribution (i) the donee is an elementary or secondary school, (ii) substantially all of the use of the property by the donee is within the United States for STEM education in any of the grades K–12 for use during the school day or in after-school programs, (iii) the original use of the property begins with the donee, (iv) the property will fit productively into the donee’s education plan, (v) the property is not transferred by the donee in exchange for money, other property, or services, except for shipping, installation and transfer costs, and (vi) the donee’s use and disposition of the property will be in accordance with the provisions of clauses (ii) through (v). (B) STEM property The term STEM property (i) computer equipment and software, (ii) microscopes, (iii) lab equipment, including glassware, digital scales, and temperature measuring devices, (iv) property used to maintain, renovate, or improve laboratory facilities, (v) STEM education curricula, and (vi) whiteboards, smartboards, cameras, and other relevant STEM education materials. (3) STEM service contributions (A) In general The term STEM service contributions (B) STEM services The term STEM services (i) providing students the opportunity to engage in hands-on technical equipment training in a STEM education field, and (ii) bringing experts in a STEM education field into the classroom or after school programs for demonstrations, talks, or mentoring exercises. (4) STEM student and educator training contributions (A) In general The term STEM student and educator training contributions (B) STEM student and educator training services The term STEM student and educator training services (i) on-site technical equipment training in a STEM education field, (ii) field trips to research or related facilities in a STEM education field, (iii) student internships or long term on-site training in a STEM education field, and (iv) educator training exercises in a STEM education field. (5) STEM education The term STEM education (6) Elementary or secondary school (A) In general The term elementary or secondary school (B) Groupings of schools Such term includes consortia or other groupings of such schools if all such schools in the consortia or grouping are located within the same State. (d) Denial of double benefit No deduction shall be allowed under this chapter for any amount allowed as a credit under this section. . (b) Conforming amendments (1) Section 38(b) of such Code is amended by striking plus , plus (37) the elementary and secondary school STEM contributions credit determined under section 45S. . (2) The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45S. Contributions benefitting science, technology, engineering, and mathematics education at the elementary and secondary school level. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 4. GAO Study Not later than 5 years after the date of the enactment of this Act, the Government Accountability Office, in consultation with the Secretary of the Treasury, shall submit to Congress a report detailing— (1) the efficacy of the STEM Education Opportunity Act in increasing higher education enrollment in the fields of math, science, engineering, and technology, and (2) any effect such Act has had on the price of higher education tuition in such fields.

Summary: STEM Education Opportunity Act This bill amends the Internal Revenue Code to allow: (1) individual taxpayers a deduction from gross income for STEM (i.e., science, technology, engineering, and mathematics) higher education expenses; and (2) a business-related tax credit for contributions of STEM property (e.g., computer equipment and software, microscopes, and lab equipment), services, and training made to an elementary or secondary school to promote education in the biological sciences, mathematics, earth and physical sciences, computer and information science, engineering, geosciences, and social and behavioral sciences. The bill defines "STEM higher education expenses" to include any expenses incurred by an individual attending an institution of higher education who is majoring in science, technology, engineering, or mathematics. The Government Accountability Office must submit to Congress a report detailing: (1) the efficacy of this Act in increasing higher education enrollment in the fields of mathematics, science, engineering, and technology; and (2) any effect this Act has had on the price of higher education tuition in such fields.