I 
109TH CONGRESS 
1ST SESSION 
H. R. 577
To amend the Internal Revenue Code of 1986 to provide a credit to businesses 
whose employees teach at community colleges. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 2, 2005
Mr. PASCRELL (for himself, Mr. ENGLISH of Pennsylvania, Mr. MCHUGH, Mr. 
PALLONE, Mr. MEEHAN, Ms. ROS-LEHTINEN, Mr. WEXLER, Ms. LORET-
TA SANCHEZ of California, Mr. SAXTON, Mr. RUSH, Mr. ALLEN, Ms. 
HARRIS, Mr. WELDON of Pennsylvania, Mr. HOLDEN, Mr. SOUDER, Mr. 
LOBIONDO, Mr. PAYNE, Mr. REYES, Mr. JEFFERSON, Mr. HINCHEY, Mr. 
PAUL, Mr. BROWN of Ohio, Ms. BORDALLO, Ms. LEE, and Ms. KIL-
PATRICK of Michigan) 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 provide 
a credit to businesses whose employees teach at commu-
nity colleges.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. CREDIT FOR EMPLOYEES WHO TEACH AT A 
COMMUNITY COLLEGE. 
(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: 
‘‘SEC. 45I. CREDIT FOR TEACHING AT A COMMUNITY COL-
LEGE. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of an employer, the community college teaching 
credit determined under this section for the taxable year 
is an amount equal to the product of $1,000 and the num-
ber of qualified employees for the taxable year. 
‘‘(b) QUALIFIED EMPLOYEE.—For purposes of sub-
section (a)—
‘‘(1) IN GENERAL.—An employee is a qualified 
employee for the taxable year if—
‘‘(A) the employee teaches an entire quali-
fied course of instruction which ends during the 
taxable year of the employer, 
‘‘(B) the employee receives no compensa-
tion from the community college for teaching 
such course, and 
‘‘(C) there is in effect with respect to such 
employee for the duration of such course a sec-
tion 45I credit teacher designation. 
‘‘(2) SECTION 45I CREDIT TEACHER DESIGNA-
TION.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1)(C), a section 45I credit teacher des-
ignation is a designation by the community col-
lege for the purposes of this section. 
‘‘(B) LIMITATION.—No designation under 
subparagraph (A) shall be effective if, for any 
portion of the period for which such designation 
is made, such designation, when added to all 
other designations by such community college 
which are in effect for any portion of such pe-
riod, exceeds 20 designations under subpara-
graph (A). 
‘‘(C) COOPERATION BETWEEN EMPLOYER 
AND COLLEGE.—Employers and each commu-
nity college should work in cooperation with 
each other to structure the volunteer program 
for purposes of this section. 
‘‘(3) QUALIFIED COURSE OF INSTRUCTION.—
The term ‘qualified course of instruction’ means a 
course of instruction at a community college which 
is required for completion of a program of instruc-
tion. 
‘‘(4) COMMUNITY COLLEGE.—The term ‘com-
munity college’ means a public or nonprofit private 
postsecondary regionally accredited institution that
provides not less than a 2-year program of instruc-
tion that is acceptable for full credit toward a bach-
elor’s degree and whose highest degree offered is 
predominantly the associate degree.’’. 
(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 fol-
lowing: 
‘‘(20) the community college teaching credit de-
termined under section 45I.’’. 
(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:
‘‘Sec. 45I. Credit for teaching at a community college.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004.
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