I 
109TH CONGRESS 
1ST SESSION 
H. R. 450 
To amend the Internal Revenue Code of 1986 to encourage stronger math 
and science programs at elementary and secondary schools. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 1, 2005 
Mr. EHLERS 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 encourage 
stronger math and science programs at elementary and 
secondary schools. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Science Edu-
cation Incentive Act of 2005’’. 
SEC. 2. FINDINGS. 
The Congress finds the following: 
(1) As concluded in the report of the Com-
mittee on Science of the House of Representatives, 
‘‘Unlocking Our Future: Toward a New National
Science Policy,’’ which was adopted by the House of 
Representatives, the United States must maintain 
and improve its preeminent position in science and 
technology in order to advance human under-
standing of the universe and all it contains, and to 
improve the lives, health, and freedoms of all people. 
(2) It is estimated that more than half of the 
economic growth of the United States today results 
directly from research and development in science 
and technology. The most fundamental research is 
responsible for investigating our perceived universe, 
to extend our observations to the outer limits of 
what our minds and methods can achieve, and to 
seek answers to questions that have never been 
asked before. Applied research continues the process 
by applying the answers from basic science to the 
problems faced by individuals, organizations, and 
governments in the everyday activities, so that our 
lives may become more meaningful and livable. 
(3) The effectiveness of the United States in 
promoting economic growth will be largely deter-
mined by the intellectual capital and innovativeness 
of the United States. Education is critical to devel-
oping this resource.
(4) The education programs of the United 
States need to provide for 3 different kinds of intel-
lectual capital. First, the country needs scientists 
and engineers to continue the research and develop-
ment that is central to the economic growth of the 
United States. Second, it needs technologically pro-
ficient workers who are comfortable and capable 
dealing with the demands of a science-based, high- 
technology workplace. Last, it needs scientifically lit-
erate voters and consumers to make intelligent deci-
sions about public policy. 
(5) Student performance on the recent Trends 
in International Math and Science Study and the 
Program for International Student Assessment high-
lights the shortcomings of current K–12 science and 
mathematics education in the United States, par-
ticularly when compared to other countries. We must 
expect more from our Nation’s educators and stu-
dents if we are to build on the accomplishments of 
previous generations. New methods of teaching 
mathematics and science are required, as well as 
better curricula and improved training of teachers, 
coupled with strong parental involvement and sup-
port.
(6) Science is more than a collection of facts, 
theories, and results. It is a process of inquiry built 
upon observations and data that leads to a way of 
knowing and explaining the perceived universe in 
logically derived concepts and theories. 
(7) Students should learn science primarily by 
doing science. Science education ought to reflect the 
scientific process and be object-oriented, experiment- 
centered, and concept-based. 
(8) Children are naturally curious and inquisi-
tive. To successfully tap into these innate qualities, 
education in science must begin at an early age and 
continue throughout the entire school experience. 
(9) Teachers provide the essential connection 
between students and the content they are learning. 
High-quality, well-trained prospective teachers need 
to be identified and recruited by presenting to them 
a career that is respected by their peers, is finan-
cially and intellectually rewarding, and contains suf-
ficient opportunities for advancement. 
(10) Teachers must have incentives to remain 
in the classroom and improve their practice, and 
training of teachers is essential if the results are to 
be superior. Teachers need to be knowledgeable of 
their content area, of their curriculum, of up-to-date
research in teaching and learning, and of techniques 
that can be used to connect that information to their 
students in their classroom. 
SEC. 3. REFUNDABLE CREDIT FOR PORTION OF TUITION 
PAID FOR UNDERGRADUATE EDUCATION OF 
CERTAIN TEACHERS. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable credits) is amended by redes-
ignating section 36 as section 37 and by inserting after 
section 35 the following new section: 
‘‘SEC. 36. TUITION FOR UNDERGRADUATE EDUCATION OF 
CERTAIN TEACHERS. 
‘‘(a) IN GENERAL.—In the case of an individual who 
is an eligible teacher for the taxable year, there shall be 
allowed as a credit against the tax imposed by this subtitle 
an amount equal to 10 percent of qualified undergraduate 
tuition paid by such individual. 
‘‘(b) LIMITATIONS.— 
‘‘(1) DOLLAR AMOUNT.—The credit allowed by 
this section for any taxable year shall not exceed 
$1,000. 
‘‘(2) TEACHERS IN HIGH-NEEDS SCHOOLS DIS-
TRICTS.—In the case of one of the first 5 taxable 
years in which a teacher is an eligible teacher who
teaches in an elementary school or a secondary 
school (as those terms are defined in section 9101 
of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7801)) receiving funds under part 
A of title I of such Act (20 U.S.C. 6311 et seq.), 
subparagraph (A) shall be applied by substituting 
‘$1,500’ for ‘$1,000’. 
‘‘(3) CREDIT ALLOWED ONLY FOR 10 YEARS.— 
No credit shall be allowed under this section for any 
taxable year after the 10th taxable year for which 
credit is allowed under this section. 
‘‘(c) ELIGIBLE TEACHER.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘eligible teacher’ 
means, with respect to a taxable year, any indi-
vidual— 
‘‘(A) who is a full-time teacher, including 
a full-time substitute teacher, in any of grades 
kindergarten through 12th grade for the aca-
demic year ending in such taxable year, 
‘‘(B)(i) 
who 
teaches 
primarily 
math, 
science, engineering, or technology courses in 1 
or more of grades 9 through 12 during such 
academic year, or
‘‘(ii) who teaches math, science, engineer-
ing, or technology courses in 1 or more of 
grades kindergarten through 8 during such aca-
demic year, 
‘‘(C) who, in the case that such individual 
is a middle or secondary school teacher, re-
ceived a baccalaureate or similar degree with a 
major in mathematics, science, engineering, or 
technology from an institution of higher edu-
cation, and 
‘‘(D) who is highly qualified (as defined in 
section 9101(23) of the Elementary and Sec-
ondary Education Act of 1965). 
‘‘(2) SPECIAL RULE FOR ADMINISTRATIVE PER-
SONNEL.—School administrative functions shall be 
treated as teaching courses referred to in paragraph 
(1)(B) if such functions primarily relate to such 
courses or are for a school which focuses primarily 
on such courses. 
‘‘(d) QUALIFIED UNDERGRADUATE TUITION.—For 
purposes of this section, the term ‘qualified undergraduate 
tuition’ means qualified higher education expenses (as de-
fined in section 529(e)(3)) for enrollment or attendance 
at an institution of higher education, reduced as provided
in section 25A(g)(2) and by any credit allowed by section 
25A with respect to such expenses. 
‘‘(e) INSTITUTION
OF HIGHER EDUCATION.—The 
term ‘institution of higher education’ means an institution 
of higher education as defined in section 102 of the Higher 
Education Act of 1965 (20 U.S.C. 1002). 
‘‘(f) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be appropriate to carry out the 
purposes of this section.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting ‘‘or 
36’’ after ‘‘section 35’’. 
(2) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by striking the last 
item and inserting the following new items: 
‘‘Sec. 36. Tuition for undergraduate education of certain teachers. 
‘‘Sec. 37. Overpayments of tax.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act; except that only 
periods of being an eligible teacher (as defined in section 
36(c) of the Internal Revenue Code of 1986, as added by 
this section) after such date shall be taken into account 
under section 36(b)(3) of such Code, as so added.
SEC. 4. CREDITS FOR CERTAIN CONTRIBUTIONS BENE-
FITING SCIENCE, TECHNOLOGY, ENGINEER-
ING, AND MATHEMATICS EDUCATION AT THE 
ELEMENTARY 
AND 
SECONDARY 
SCHOOL 
LEVEL. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to business related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45J. CONTRIBUTIONS BENEFITING SCIENCE, TECH-
NOLOGY, ENGINEERING, AND MATHEMATICS 
EDUCATION AT THE ELEMENTARY AND SEC-
ONDARY SCHOOL LEVEL. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
elementary and secondary science, technology, engineer-
ing, and mathematics (STEM) contributions credit deter-
mined under this section for the taxable year is an amount 
equal to 100 percent of the qualified STEM contributions 
of the taxpayer for such taxable year. 
‘‘(b) QUALIFIED STEM CONTRIBUTIONS.—For pur-
poses of this section, the term ‘qualified STEM contribu-
tions’ means— 
‘‘(1) STEM school contributions, 
‘‘(2) STEM teacher externship expenses, and 
‘‘(3) STEM teacher training expenses.
‘‘(c) STEM SCHOOL CONTRIBUTIONS.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘STEM school 
contributions’ means— 
‘‘(A) STEM property contributions, and 
‘‘(B) STEM service contributions. 
‘‘(2) STEM PROPERTY CONTRIBUTIONS.—The 
term ‘STEM property contributions’ means the 
amount which would (but for subsection (f)) be al-
lowed as a deduction under section 170 for a chari-
table contribution of STEM inventory property if— 
‘‘(A) the donee is an elementary or sec-
ondary 
school 
described 
in 
section 
170(b)(1)(A)(ii), 
‘‘(B) substantially all of the use of the 
property by the donee is within the United 
States or within the defense dependents’ edu-
cation system for educational purposes in any 
of the grades K–12 that are related to the pur-
pose or function of the donee, 
‘‘(C) the original use of the property be-
gins with the donee, 
‘‘(D) the property will fit productively into 
the donee’s education plan,
‘‘(E) the property is not transferred by the 
donee in exchange for money, other property, or 
services, except for shipping, installation and 
transfer costs, and 
‘‘(F) the donee’s use and disposition of the 
property will be in accordance with the provi-
sions of subparagraphs (B) and (E). 
The determination of the amount of deduction under 
section 170 for purposes of this paragraph shall be 
made as if the limitation under section 170(e)(3)(B) 
applied to all STEM inventory property. 
‘‘(3) STEM SERVICE
CONTRIBUTIONS.—The 
term ‘STEM service contributions’ means the 
amount paid or incurred during the taxable year for 
STEM services provided in the United States or in 
the defense dependents’ education system for the ex-
clusive benefit of students at an elementary or sec-
ondary school described in section 170(b)(1)(A)(ii) 
but only if— 
‘‘(A) the taxpayer is engaged in the trade 
or business of providing such services on a com-
mercial basis, and 
‘‘(B) no charge is imposed for providing 
such services.
‘‘(4) STEM INVENTORY PROPERTY.—The term 
‘STEM inventory property’ means, with respect to 
any contribution to a school, any property— 
‘‘(A) which is described in paragraph (1) 
or (2) of section 1221(a) with respect to the 
donor, and 
‘‘(B) which is determined by the school to 
be needed by the school in providing education 
in grades K–12 in the areas of science, tech-
nology, engineering, or mathematics. 
‘‘(5) STEM SERVICES.—The term ‘STEM serv-
ices’ means, with respect to any contribution to a 
school, any service determined by the school to be 
needed by the school in providing education in 
grades K–12 in the areas of science, technology, en-
gineering, 
or 
mathematics, 
including 
teaching 
courses of instruction at such school in any such 
area. 
‘‘(6) DEFENSE DEPENDENTS’ EDUCATION SYS-
TEM.—For purposes of this subsection, the term ‘de-
fense dependents’ education system’ means the pro-
gram established and operated under the Defense 
Dependents’ Education Act of 1978 (20 U.S.C. 921 
et seq.).
‘‘(d) STEM TEACHER EXTERNSHIP EXPENSES.— 
For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘STEM teacher 
externship expenses’ means any amount paid or in-
curred to carry out a STEM externship program of 
the taxpayer but only to the extent that such 
amount is attributable to the participation in such 
program of any eligible STEM teacher, including 
amounts paid to such a teacher as a stipend while 
participating in such program. 
‘‘(2) STEM EXTERNSHIP PROGRAM.—The term 
‘STEM externship program’ means any program— 
‘‘(A) established by a taxpayer engaged in 
a trade or business within an area of science, 
technology, engineering, or mathematics, and 
‘‘(B) under which eligible STEM teachers 
receive training to enhance their teaching skills 
in the areas of science, technology, engineering, 
or mathematics or otherwise improve their 
knowledge in such areas. 
‘‘(3) ELIGIBLE STEM TEACHER.—The term ‘eli-
gible STEM teacher’ means any individual— 
‘‘(A) who is a teacher in grades K–12 at 
an educational organization described in section 
170(b)(1)(A)(ii) which is located in the United
States or which is located on a United States 
military base outside the United States, and 
‘‘(B) whose teaching responsibilities at 
such school include, or are likely to include, any 
course in the areas of science, technology, engi-
neering, or mathematics. 
‘‘(e) STEM TEACHER TRAINING EXPENSES.—The 
term ‘STEM teacher training expenses’ means any 
amount paid or incurred by a taxpayer engaged in a trade 
or business within an area of science, technology, engi-
neering, or mathematics which is attributable to the par-
ticipation of any eligible STEM teacher in a regular train-
ing program provided to employees of the taxpayer which 
is determined by such teacher’s school as enhancing such 
teacher’s teaching skills in the areas of science, tech-
nology, engineering, or mathematics. 
‘‘(f) 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’’ at the end of paragraph (18), by 
striking the period at the end of paragraph (19), 
and inserting ‘‘, plus’’, and by adding at the end the 
following new paragraph:
‘‘(20) the elementary and secondary science, 
technology, engineering, and mathematics (STEM) 
contributions credit determined under section 45J.’’. 
(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. 45J. Contributions benefiting science, technology, engineering, and mathe-
matics 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. 
SEC. 5. ASSURANCE OF CONTINUED LOCAL CONTROL. 
Nothing in this Act may be construed to authorize 
any department, agency, officer, or employee of the United 
States to exercise any direction, supervision, or control 
over the curriculum, program of instruction, administra-
tion, or personnel of any educational institution or school 
system. 
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