SEC. 2. 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. 45O. 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. 
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‘‘(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, 
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‘‘(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. 
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‘‘(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.). 
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‘‘(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 
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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 (30), by 
striking the period at the end of paragraph (31), 
and inserting ‘‘, plus’’, and by adding at the end the 
following new paragraph: 
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‘‘(32) the elementary and secondary science, 
technology, engineering, and mathematics (STEM) 
contributions credit determined under section 45O.’’. 
(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. 45O. Contributions benefiting science, technology, engineering, and math-
ematics 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. 
Æ 
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