I
106TH CONGRESS
2D SESSION
H. R. 4273
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
APRIL 13, 2000
Mr. EHLERS (for himself, Mrs. BIGGERT, Mr. BOEHLERT, Mr. BRADY of
Texas, Mr. COOK, Mr. GILCHREST, Mr. GILMAN, Mr. HOLT, Mr. JEN-
KINS, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. KUYKENDALL, Mr.
PORTER, Mrs. ROUKEMA, Mr. SMITH of Michigan, Mr. SWEENEY, Mr.
UPTON, and Mrs. WILSON) introduced the following bill, which was re-
ferred 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 2000’’.
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 that make our
lives more livable. The scientific-technological sector
of our economy, which has driven our recent eco-
nomic boom and led the United States to the longest
period of prosperity in history, is fueled by the work
and discoveries of the scientific community.
(3) The effectiveness of the United States in
maintaining this economic growth will be largely de-
termined by the intellectual capital of the United
States. Education is critical to developing this re-
source.
(4) The education program of the United States
needs to provide for 3 different kinds of intellectual
capital. First, it needs scientists and engineers to
continue the research and development that is cen-
tral to the economic growth of the United States.
Second, it needs technologically proficient workers
who are comfortable and capable dealing with the
demands of a science-based, high-technology work-
place. Last, it needs scientifically literate voters and
consumers to make intelligent decisions about public
policy.
(5) Student performance on the recent Third
International Math and Science Study highlights the
shortcomings of current K–12 science and mathe-
matics education in the United States, particularly
when compared to other countries. We must expect
more from our Nation’s educators and students 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.
(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 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 prospective teachers need to be identi-
fied and recruited by presenting to them a career
that is respected by their peers, is financially and in-
tellectually rewarding, and contains sufficient oppor-
tunities for advancement.
(10) Teachers need to have incentives to remain
in the classroom and improve their practice, and
training of teachers is essential if the results are to
be good. Teachers need to be knowledgeable of their
content area, of their curriculum, of up-to-date re-
search 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 35 as section 36 and by inserting after
section 34 the following new section:
‘‘SEC. 35. 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) 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
section—
‘‘(1) IN GENERAL.—The term ‘eligible teacher’
means, with respect to a taxable year, any
individual—
‘‘(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 completed a 5-year teaching
training program which meets the requirements
of paragraph (3), and
‘‘(D) who received a baccalaureate or simi-
lar degree with a major in mathematics,
science, engineering, or technology from a quali-
fied educational institution.
‘‘(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.
‘‘(3) 5-YEAR TEACHER TRAINING PROGRAM.—
For purposes of paragraph (1)(C)—
‘‘(A) ELEMENTARY SCHOOL TEACHERS.—
In the case of an elementary school teacher, a
teacher training program meets the require-
ments of this paragraph if—
‘‘(i) the program requires, in addition
to education courses, that the student com-
plete courses in physics, chemistry, and bi-
ology, and
‘‘(ii) the program recommends com-
pletion of an earth science.
‘‘(B) MIDDLE AND HIGH SCHOOL TEACH-
ERS.—In the case of a middle or high school
teacher, a teacher training program meets the
requirements of this paragraph if the program
requires, in addition to education courses, that
the student also major in a science referred to
in subparagraph (A) and that the student also
complete introductory courses in 2 other
sciences referred to in subparagraph (A).
‘‘(4) QUALIFIED EDUCATIONAL INSTITUTION.—
The term ‘qualified educational institution’ means
any eligible educational institution (as defined in
section 25A(f)(2)) if—
‘‘(A) more than 80 percent of such institu-
tion’s graduates who apply for certification by
any State as a teacher are so certified, and
‘‘(B) such institution’s school of education
(or 
equivalent 
unit) 
has 
an 
advisory
committee—
‘‘(i) which includes (on a rotating
basis or otherwise) practicing mathemati-
cians and scientists and representatives
from several of the appropriate science,
mathematics, engineering, and technology
departments of such institution, and
‘‘(ii) which publishes annually a re-
port detailing curricula reforms for such
school (or unit) designed to align teacher
training curricula with State requirements
and expectations.
‘‘(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 a qualified educational in-
stitution, reduced as provided in section 25A(g)(2) and by
any credit allowed by section 25A with respect to such
expenses.
‘‘(e) 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 be-
fore the period ‘‘, or from section 35 of such Code’’.
(2) The table of sections for subpart C of part
IV of subchapter A of chapter 1 of such Code is
amended by striking the last item and inserting the
following new items:
‘‘Sec. 35. Tuition for undergraduate education of certain teachers.
‘‘Sec. 36. 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
35(c) of the Internal Revenue Code of 1986, as added by
this section) after such date shall be taken into account
under section 35(b)(2) of such Code, as so added.
SEC. 4. CREDITS FOR CERTAIN CONTRIBUTIONS BENE-
FITING SCIENCE, MATHEMATICS, ENGINEER-
ING, AND TECHNOLOGY 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. 45D. CONTRIBUTIONS BENEFITING SCIENCE, MATHE-
MATICS, ENGINEERING, AND TECHNOLOGY
EDUCATION AT THE ELEMENTARY AND SEC-
ONDARY SCHOOL LEVEL.
‘‘(a) IN GENERAL.—For purposes of section 38, the
elementary and secondary science, mathematics, engineer-
ing, and technology (SMET) contributions credit deter-
mined under this section for the taxable year is an amount
equal to 100 percent of the qualified SMET contributions
of the taxpayer for such taxable year.
‘‘(b) QUALIFIED SMET CONTRIBUTIONS.—For pur-
poses of this section, the term ‘qualified SMET contribu-
tions’ means—
‘‘(1) SMET school contributions,
‘‘(2) SMET teacher externship expenses, and
‘‘(3) SMET teacher training expenses.
‘‘(c) SMET SCHOOL CONTRIBUTIONS.—For pur-
poses of this section—
‘‘(1) IN GENERAL.—The term ‘SMET school
contributions’ means—
‘‘(A) SMET property contributions, and
‘‘(B) SMET service contributions.
‘‘(2) SMET PROPERTY CONTRIBUTIONS.—The
term ‘SMET 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 SMET 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 for educational purposes in any of the
grades K–12 that are related to the purpose 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 SMET inventory property.
‘‘(3) SMET SERVICE
CONTRIBUTIONS.—The
term ‘SMET service contributions’ means the
amount paid or incurred during the taxable year for
SMET services provided in the United States for the
exclusive 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) SMET INVENTORY PROPERTY.—The term
‘SMET 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, mathe-
matics, engineering, or technology.
‘‘(5) SMET SERVICES.—The term ‘SMET 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, mathematics,
engineering, 
or 
technology, 
including 
teaching
courses of instruction at such school in any such
area.
‘‘(d) SMET TEACHER EXTERNSHIP EXPENSES.—
For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘SMET teacher
externship expenses’ means any amount paid or in-
curred to carry out a SMET externship program of
the taxpayer but only to the extent that such
amount is attributable to the participation in such
program of any eligible SMET teacher, including
amounts paid to such a teacher as a stipend while
participating in such program.
‘‘(2) SMET EXTERNSHIP PROGRAM.—The term
‘SMET externship program’ means any program—
‘‘(A) established by a taxpayer engaged in
a trade or business within an area of science,
mathematics, engineering, or technology, and
‘‘(B) under which eligible SMET teachers
receive training to enhance their teaching skills
in the areas of science, mathematics, engineer-
ing, or technology or otherwise improve their
knowledge in such areas.
‘‘(3) ELIGIBLE SMET TEACHER.—The term ‘eli-
gible SMET 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, mathematics, en-
gineering, or technology.
‘‘(e) SMET TEACHER TRAINING EXPENSES.—The
term ‘SMET teacher training expenses’ means any
amount paid or incurred by a taxpayer engaged in a trade
or business within an area of science, mathematics, engi-
neering, or technology which is attributable to the partici-
pation of any eligible SMET teacher in a regular training
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, mathe-
matics, engineering, or technology.
‘‘(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—
(A) by striking ‘‘plus’’ at the end of para-
graph (11),
(B) by striking the period at the end of
paragraph (12), and inserting ‘‘, plus’’, and
(C) by adding at the end the following new
paragraph:
‘‘(13) the elementary and secondary science,
mathematics, engineering, and technology (SMET)
contributions credit determined under section 45D.’’.
(2) Subsection (d) of section 39 of such Code
(relating to carryback and carryforward of unused
credits) is amended by adding at the end the fol-
lowing new paragraph:
‘‘(9) NO CARRYBACK OF SECTION 45D CREDIT
BEFORE ENACTMENT OF CREDIT.—No portion of the
unused business credit for any taxable year which is
attributable to the credit determined under section
45D may be carried back to a taxable year begin-
ning before the date of the enactment of this para-
graph.’’.
(3) 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. 45D. Contributions benefiting science, mathematics, engi-
neering, and technology education at the elemen-
tary 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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