I 
117TH CONGRESS 
1ST SESSION H. R. 4727 
To provide for loan forgiveness for STEM teachers, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 27, 2021 
Mr. SWALWELL (for himself and Mr. KHANNA) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Education and Labor, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To provide for loan forgiveness for STEM teachers, and 
for other purposes. 
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 ‘‘STEM K to Career 
Act’’. 
SEC. 2. LOAN FORGIVENESS FOR STEM TEACHERS. 
Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is amended by adding at 
the end the following: 
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‘‘SEC. 495. LOAN FORGIVENESS FOR STEM TEACHERS. 
‘‘(a) LOAN FORGIVENESS AUTHORIZED.—The Sec-
retary shall forgive, in accordance with this section, the 
qualified loan amount described in subsection (c) of the 
student loan obligation of a borrower who— 
‘‘(1) is employed as a full-time STEM teacher 
for service in an academic year (including such a 
STEM teacher employed by an educational service 
agency)— 
‘‘(A) in a public or other nonprofit private 
elementary school or secondary school, which, 
for the purpose of this paragraph and for that 
year— 
‘‘(i) has been determined by the Sec-
retary (pursuant to regulations of the Sec-
retary and after consultation with the 
State educational agency of the State in 
which the school is located) to be a school 
in which the number of children meeting a 
measure 
of 
poverty 
under 
section 
1113(a)(5) of the Elementary and Sec-
ondary Education Act of 1965, exceeds 30 
percent of the total number of children en-
rolled in such school; and 
‘‘(ii) is in the school district of a local 
educational agency which is eligible in such 
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year for assistance pursuant to part A of 
title I of the Elementary and Secondary 
Education Act of 1965; or 
‘‘(B) in one or more public, or nonprofit 
private, elementary schools or secondary schools 
or locations operated by an educational service 
agency that have been determined by the Sec-
retary (pursuant to regulations of the Secretary 
and after consultation with the State edu-
cational agency of the State in which the edu-
cational service agency operates) to be a school 
or location at which the number of children 
taught who meet a measure of poverty under 
section 1113(a)(5) of the Elementary and Sec-
ondary Education Act of 1965, exceeds 30 per-
cent of the total number of children taught at 
such school or location; and 
‘‘(2) is not in default on a loan for which the 
borrower seeks forgiveness. 
‘‘(b) METHOD OF LOAN FORGIVENESS.—To provide 
loan forgiveness under subsection (a), the Secretary shall 
carry out a program— 
‘‘(1) through the holder of the loan, to assume 
the obligation to repay a qualified loan amount for 
a loan made, insured, or guaranteed under part B 
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(other than an excepted PLUS loan or an excepted 
consolidation loan (as such terms are defined in sec-
tion 493C(a))); and 
‘‘(2) to cancel a qualified loan amount for a 
loan made under part D (other than an excepted 
PLUS loan or an excepted consolidation loan). 
‘‘(c) QUALIFIED LOAN AMOUNT.— 
‘‘(1) FORGIVENESS OF PERCENTAGE OF DEBT 
BASED ON YEARS OF SERVICE.—For each complete 
year of service by a borrower as a STEM teacher in 
accordance with this section after the date of enact-
ment of the STEM K to Career Act, the Secretary 
shall forgive the student loan obligation of the bor-
rower at the rate of 15 percent of such obligation for 
the first or second year of such service, 20 percent 
of such obligation for the third or fourth year of 
such service, and 30 percent of such obligation for 
the fifth year of such service. 
‘‘(2) PRINCIPAL AND INTEREST FORGIVEN.—If 
a portion of a loan is forgiven under this section for 
any year, the entire amount of interest on such loan 
which accrues for such year shall be forgiven. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) LIST OF SCHOOLS.—If the list of schools 
in which a STEM teacher may perform service pur-
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suant to subsection (a)(1) is not available before 
May 1 of any year, the Secretary may use the list 
for the year preceding the year for which the deter-
mination is made to make such service determina-
tion. 
‘‘(2) CONTINUING
ELIGIBILITY.—Any teacher 
who performs service in a school which— 
‘‘(A) meets the requirements of subsection 
(a)(1) in any year; and 
‘‘(B) in a subsequent year fails to meet the 
requirements of such subsection, 
may continue to teach in such school and shall be 
eligible for loan forgiveness pursuant to this section 
such subsequent years. 
‘‘(3) PROMISSORY NOTE CONFLICTS.—An indi-
vidual with an outstanding student loan obligation 
who performs service described in subsection (a)(1) 
in accordance with this section shall be eligible for 
forgiveness under this section for such service not-
withstanding any contrary provision of the promis-
sory note under which the loan or loans were made. 
‘‘(4) FORGIVENESS
NOT
CONSIDERED
IN-
COME.—The amount of a loan, and interest on a 
loan, which is forgiven under this section shall not 
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be considered income for purposes of the Internal 
Revenue Code of 1986. 
‘‘(5) NO REFUNDS.—Nothing in this subsection 
shall be construed to authorize refunding of any re-
payment of a loan. 
‘‘(6) NO DOUBLE BENEFIT.—No borrower may, 
for the same service, receive a benefit under both 
this section and subtitle D of title I of the National 
and Community Service Act of 1990 (42 U.S.C. 
12601 et seq.). 
‘‘(e) REGULATIONS.—The Secretary is authorized to 
issue such regulations as may be necessary to carry out 
this section. 
‘‘(f) DEFINITIONS.—For the purposes of this sec-
tion— 
‘‘(1) the term ‘year’ where applied to service as 
a STEM teacher means academic year as defined by 
the Secretary; and 
‘‘(2) the term ‘STEM teacher’ means a teacher 
of science, technology, engineering, or mathe-
matics.’’. 
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SEC. 3. ABOVE-THE-LINE DEDUCTION FOR STEM EDU-
CATION MATERIALS. 
(a) IN GENERAL.—Section 62(a)(2)(D) of the Inter-
nal Revenue Code of 1986 is amended by adding at the 
end the following flush matter: 
‘‘In the case of taxable years beginning after 
December 31, 2021, the $250 amount in clause 
(i) shall be increased by an amount equal to so 
much of the amounts paid or incurred by the el-
igible educator for STEM education supplies as 
does not exceed $250.’’. 
(b) INFLATION ADJUSTMENT.—Section 62(d)(3) of 
such Code is amended to read as follows: 
‘‘(3) INFLATION ADJUSTMENT.— 
‘‘(A) IN
GENERAL.—In the case of any 
taxable year beginning after 2017, the first 
$250 amount in subsection (a)(2)(D) shall be 
increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2016’ for ‘calendar year 2018’ in sub-
paragraph (A)(ii) thereof. 
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‘‘(B) STEM EDUCATION
SUPPLIES.—In 
the case of any taxable year beginning after 
2021, the $250 amount in subsection (a)(2)(D) 
shall be increased by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which the taxable year be-
gins, determined by substituting ‘calendar 
year 2020’ for ‘calendar year 2018’ in sub-
paragraph (A)(ii) thereof. 
‘‘(C) ROUNDING.—Any increase deter-
mined under subparagraph (A) or (B) shall be 
rounded to the nearest multiple of $50.’’. 
(c) STEM EDUCATION SUPPLIES DEFINED.—Sec-
tion 62(d) of such Code, as amended by subsection (b), 
is amended by redesignating paragraphs (2) and (3) as 
paragraphs (3) and (4), respectively, and by inserting 
after paragraph (1) the following new paragraph: 
‘‘(2) STEM EDUCATION SUPPLIES.—For pur-
poses of subsection (a)(2)(D), the term ‘STEM edu-
cation supplies’ means expenses for books, supplies, 
equipment, and other materials used in connection 
with teaching science, technology, engineering, or 
math.’’. 
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(d) CLERICAL AMENDMENT.—The heading for sec-
tion 62(d) of such Code is amended by striking ‘‘DEFINI-
TION; SPECIAL RULES’’ and inserting ‘‘ELEMENTARY AND 
SECONDARY SCHOOL TEACHERS’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 4. STEM INTERNSHIP TAX CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new 
section: 
‘‘SEC. 45U. STEM INTERNSHIP CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of an eligible employer, the STEM internship 
credit determined under this section for the taxable year 
is equal to $2,000 for each qualified STEM intern em-
ployed by the employer during the taxable year. 
‘‘(b) LIMITATION.—The total amount of the credit al-
lowed under subsection (a) to a taxpayer for a taxable year 
may not exceed $50,000. 
‘‘(c) DEFINITIONS.—For purposes of subsection 
(a)— 
‘‘(1) QUALIFIED
STEM
INTERN.—The term 
‘qualified STEM intern’ means an individual who is 
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employed under an internship program of an eligible 
employer under which— 
‘‘(A) each intern is paid not less than the 
wage in effect under section 6(a) of the Fair 
Labor Standards Act of 1938, 
‘‘(B) each intern is employed for not less 
than 20 hours per week by the eligible employer 
in a position related to the career goals of the 
intern, 
‘‘(C) each intern completes not less than 6 
weeks of employment with the eligible employer 
as an intern, and 
‘‘(D) each intern is a student who is en-
rolled full-time in a science, technology, engi-
neering, or math program (including a program 
of study abroad approved for credit by the eligi-
ble institution at which such student is en-
rolled) leading to a recognized undergraduate or 
graduate degree at an institution of higher edu-
cation that is an eligible institution in accord-
ance with the provisions of section 487 of the 
Higher Education Act of 1965 (20 U.S.C. 
1094) and is not enrolled in an elementary or 
secondary school. 
‘‘(2) ELIGIBLE EMPLOYER.— 
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‘‘(A) IN GENERAL.—The term ‘eligible em-
ployer’ means an employer who employed on av-
erage not more than 500 full-time employees on 
business days during the preceding calendar 
year. For purposes of the preceding sentence, 
any individual with respect to whom a credit is 
allowed under this section shall not be taken 
into account. 
‘‘(B) RULES
FOR
DETERMINING
EM-
PLOYER SIZE.—For purposes of subparagraph 
(A)— 
‘‘(i) APPLICATION
OF
AGGREGATION 
RULE FOR EMPLOYERS.—All persons treat-
ed as a single employer under subsection 
(b), (c), (m), or (o) of section 414 shall be 
treated as 1 employer. 
‘‘(ii) EMPLOYERS NOT IN EXISTENCE 
IN PRECEDING YEAR.—In the case of an 
employer which was not in existence 
throughout the preceding calendar year, 
the determination of whether such em-
ployer is an eligible employer shall be 
based on the average number of employees 
that it is reasonably expected such em-
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ployer will employ on business days in the 
current calendar year. 
‘‘(iii) PREDECESSORS.—Any reference 
in this paragraph to an employer shall in-
clude a reference to any predecessor of 
such employer.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Section 38(b) of such Code is amended by strik-
ing ‘‘plus’’ at the end of paragraph (33), by striking the 
period at the end of paragraph (34) and inserting ‘‘, plus’’, 
and by adding at the end the following new paragraph: 
‘‘(35) the STEM internship credit determined 
under section 45T(a).’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C(a) 
of such Code is amended by inserting ‘‘45U(a),’’ after 
‘‘45T(a),’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 45U. STEM internship credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
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SEC. 5. STEM APPRENTICESHIP TAX CREDIT. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986, as amended by section 4, is amended by adding at 
the end the following new section: 
‘‘SEC. 45V. STEM APPRENTICESHIP CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of an eligible employer the STEM apprentice-
ship credit determined under this section for the taxable 
year is an amount equal to the taxpayer’s aggregate 
STEM credit amount for the taxable year. 
‘‘(b) LIMITATION.—The total amount of the credit al-
lowed under subsection (a) to a taxpayer for a taxable year 
may not exceed $50,000. 
‘‘(c) STEM CREDIT AMOUNT.—For purposes of sub-
section (a), the STEM credit amount with respect to an 
individual shall be— 
‘‘(1) $2,000 in the case of a new apprentice, 
‘‘(2) $3,000 in the case of a mid-career appren-
tice, 
‘‘(3) $3,000 in the case of an unemployed ap-
prentice, and 
‘‘(4) 5,000 in the case of a completed appren-
ticeship employee. 
‘‘(d) DEFINITIONS.—For purposes of subsection 
(a)— 
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‘‘(1) ELIGIBLE EMPLOYER.— 
‘‘(A) IN GENERAL.—The term ‘eligible em-
ployer’ means an employer who employed on av-
erage not more than 500 full-time employees on 
business days during the preceding calendar 
year. For purposes of the preceding sentence, 
any individual with respect to whom a credit is 
allowed under this section shall not be taken 
into account. 
‘‘(B) RULES
FOR
DETERMINING
EM-
PLOYER SIZE.—For purposes of subparagraph 
(A)— 
‘‘(i) APPLICATION
OF
AGGREGATION 
RULE FOR EMPLOYERS.—All persons treat-
ed as a single employer under subsection 
(b), (c), (m), or (o) of section 414 shall be 
treated as 1 employer. 
‘‘(ii) EMPLOYERS NOT IN EXISTENCE 
IN PRECEDING YEAR.—In the case of an 
employer which was not in existence 
throughout the preceding calendar year, 
the determination of whether such em-
ployer is an eligible employer shall be 
based on the average number of employees 
that it is reasonably expected such em-
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ployer will employ on business days in the 
current calendar year. 
‘‘(iii) PREDECESSORS.—Any reference 
in this paragraph to an employer shall in-
clude a reference to any predecessor of 
such employer. 
‘‘(2) NEW
APPRENTICE.—The term ‘new ap-
prentice’ means an employee who, with respect to an 
eligible employer— 
‘‘(A) completed during the taxable year a 
qualified apprenticeship program, and 
‘‘(B) prior to beginning the qualified ap-
prenticeship program, has not received com-
pensation during the preceding 1-year period 
for services provided to the eligible employer. 
‘‘(3) MID-CAREER
APPRENTICE.—The term 
‘mid-career apprentice’ means an employee who— 
‘‘(A) prior to being employed by the eligi-
ble employer was either— 
‘‘(i) employed in an industry sector 
different from the industry section the eli-
gible employer is in, as determined under 
regulations of the Secretary, or 
‘‘(ii) or was unemployed, and 
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‘‘(B) completed during the taxable year a 
qualified apprenticeship program. 
‘‘(4) 
COMPLETED
APPRENTICESHIP
EM-
PLOYEE.—The term ‘completed apprenticeship em-
ployee’ means an employee who, with respect to an 
eligible employer, completed 1 year of service with 
the eligible employer during the taxable year after 
completing a qualified apprenticeship program. 
‘‘(5) QUALIFIED APPRENTICESHIP PROGRAM.— 
The term ‘qualified apprenticeship program’ means 
an apprenticeship program in a field of science, tech-
nology, engineering, or math that is recognized 
under any program administered by the Secretary of 
Labor. 
‘‘(6) UNEMPLOYED.—An individual is unem-
ployed if the individual is certified by the designated 
local agency as being in receipt of unemployment 
compensation under State or Federal law for not 
less than 4 weeks during the 1-year period ending 
on the hiring date. 
‘‘(7) HIRING DATE; DESIGNATED LOCAL AGEN-
CY.—The terms ‘hiring date’ and ‘designated local 
agency’ have the meanings given such terms by sec-
tion 51(d)(11) and (12), respectively. 
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‘‘(e) DENIAL OF DOUBLE BENEFIT.—No deduction 
or credit shall be allowed under any other provision of this 
chapter for any expenses paid or incurred with respect to 
an individual to the extent of the credit allowed under this 
section with respect to the individual.’’. 
(b) CREDIT MADE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code, as 
amended by section 4, is amended by striking ‘‘plus’’ at 
the end of paragraph (34), by striking the period at the 
end of paragraph (35) and inserting ‘‘, plus’’, and by add-
ing at the end the following new paragraph: 
‘‘(36) the STEM apprenticeship credit deter-
mined under section 45U(a).’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C(a) 
of such Code is amended by inserting ‘‘45V(a),’’ after 
‘‘45U(a),’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new item: 
‘‘Sec. 45V. STEM apprenticeship credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2021. 
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SEC. 6. MANDATORY MINIMUM ALLOCATION OF PORTION 
OF FEDERAL WORK-STUDY PROGRAM FUNDS 
FOR STEM EMPLOYMENT. 
(a) MANDATORY MINIMUM ALLOCATION FOR STEM 
EMPLOYMENT.—Section 443(b)(2) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 2753(b)(2)) is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (A); 
(2) by redesignating subparagraph (B) as sub-
paragraph (C); and 
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraph: 
‘‘(B) for fiscal year 2022 and succeeding 
fiscal years, an institution shall use at least 7 
percent of the total amount of funds granted to 
such institution under this section for such fis-
cal year to compensate students employed in 
science, technology, engineering, or mathe-
matics, except that the Secretary may waive 
this subparagraph if the Secretary determines 
that enforcing this subparagraph would cause 
hardship for students at the institution.’’. 
(b) CONFORMING AMENDMENT RELATING TO OFF- 
CAMPUS STEM EMPLOYMENT FOR STUDENTS AT PRO-
PRIETARY INSTITUTIONS OF HIGHER EDUCATION.—Sec-
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tion 443(b)(8) of such Act (20 U.S.C. 2753(b)(8)) is 
amended— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(A); 
(2) by adding ‘‘or’’ at the end of subparagraph 
(B); and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(C) in science, technology, engineering, or 
mathematics, in accordance with paragraph 
(2)(B) of this subsection;’’. 
Æ 
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