I
103D CONGRESS
1ST SESSION
H. R. 2906
To amend the Internal Revenue Code of 1986 to allow a credit for charitable
contributions made by businesses to public elementary and secondary
schools located in poverty areas.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 5, 1993
Mr. TUCKER (for himself, Mr. DIXON, Mr. MARTINEZ, Mr. MFUME, Mr.
REYNOLDS, Mr. MINETA, Mr. HORN, Mr. EDWARDS of California, Mr.
SERRANO, Mr. TORRES, Mr. DELLUMS, Mr. STOKES, Mr. LEWIS of Geor-
gia, Miss COLLINS of Michigan, and Mr. FAZIO) 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 allow a
credit for charitable contributions made by businesses
to public elementary and secondary schools located in
poverty areas.
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 ‘‘Adopt-A-School Act
of 1993’’.
SEC. 2. CREDIT FOR CERTAIN BUSINESS CONTRIBUTIONS
TO PUBLIC ELEMENTARY AND SECONDARY
SCHOOLS LOCATED IN POVERTY AREAS.
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end thereof the follow-
ing new section:
‘‘SEC. 30A. CERTAIN BUSINESS CONTRIBUTIONS TO PUBLIC
ELEMENTARY AND SECONDARY SCHOOLS LO-
CATED IN POVERTY AREAS.
‘‘(a) IN GENERAL.—In the case of a taxpayer en-
gaged in a trade or business, there shall be allowed as
a credit against the tax imposed by this chapter for the
taxable year an amount equal to 70 percent of the quali-
fied public school contributions made during such taxable
year.
‘‘(b) QUALIFIED PUBLIC SCHOOL CONTRIBUTION.—
‘‘(1) IN GENERAL.—The term ‘qualified public
school contribution’ means—
‘‘(A) any contribution to a qualified public
school for its exclusive use if—
‘‘(i) such contribution is—
‘‘(I) cash to be used by such
school for qualified tangible personal
property or for additions or improve-
ments to such school, or
‘‘(II) qualified tangible personal
property, and
‘‘(ii) the taxpayer receives from the
donee a written statement representing
that such school is a qualified public school
and that the contribution will be used in
accordance with this subparagraph, and
‘‘(B) any amount paid or incurred by the
taxpayer for training services provided to stu-
dents attending a qualified public school as part
of an educational program approved by such
school.
In the case of a contribution of property, the
amount taken into account under subsection (a)
shall be the amount which would (but for subsection
(c)) be allowed as a deduction under section 170 for
such contribution.
‘‘(2) QUALIFIED
PUBLIC
SCHOOL.—The term
‘qualified public school’ means any school for the
education of students at or below the 12 grade level
if—
‘‘(A) such school is owned and operated by
a local government,
‘‘(B) such school is located in a population
census tract having a poverty rate of at least 15
percent (as determined using the most recent
decennial census data available), and
‘‘(C) the funding provided for such school
from government sources is not reduced by rea-
son of any contribution to which this section
applies.
‘‘(3) QUALIFIED
TANGIBLE
PERSONAL
PROP-
ERTY.—The term ‘qualified tangible personal prop-
erty’ means tangible personal property to be used by
students attending the qualified public school or by
teachers at such school as part of the educational
program of such school.
‘‘(4) AREAS NOT WITHIN CENSUS TRACTS.—In
the case of an area which is not tracted for popu-
lation census tracts, the equivalent county divisions
(as defined by the Bureau of the Census for pur-
poses of defining poverty areas) shall be used for
purposes of paragraph (2)(B).
‘‘(c) DENIAL OF DEDUCTION.—No deduction shall be
allowed under provision of this chapter for any amount
which is taken into account in determining the credit
under this section.
‘‘(d) APPLICATION WITH OTHER CREDITS.—The
credit allowed by subsection (a) for any taxable year shall
not exceed the excess (if any) of—
‘‘(1) the regular tax for the taxable year re-
duced by the sum of the credits allowable under sub-
part A and the preceding sections of this subpart,
and
‘‘(2) the tentative minimum tax for the taxable
year.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subpart B of part IV of subchapter A of chapter 1
of such Code is amended by adding at the end thereof
the following new item:
‘‘Sec. 30A. Certain business contributions to public elementary
and secondary schools located in poverty areas.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to contributions made after the
date of the enactment of this Act in taxable years ending
after such date.
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