I 
109TH CONGRESS 
1ST SESSION H. R. 2008 
To amend the Internal Revenue Code of 1986 to allow a business credit 
for donations for vocational educational purposes. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 28, 2005 
Mr. POMBO 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 
business credit for donations for vocational educational 
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 ‘‘Public Private Voca-
tional Partnership Act of 2005’’. 
SEC. 2. DONATIONS TO SECONDARY SCHOOLS AND COMMU-
NITY 
COLLEGES 
FOR 
VOCATIONAL 
EDU-
CATION PURPOSES. 
(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. 45J. DONATIONS TO SECONDARY SCHOOLS AND COM-
MUNITY COLLEGES FOR VOCATIONAL EDU-
CATION PURPOSES. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
in the case of a corporation (as defined in section 
170(e)(4)(D)), the vocational education donation credit 
determined under this section for the taxable year is an 
amount equal to the sum of— 
‘‘(1) 90 percent of the fair market value of 
qualified property donations made during the tax-
able year, plus 
‘‘(2) the aggregate of the intern credit amounts. 
‘‘(b) LIMITATIONS.— 
‘‘(1) QUALIFIED PROPERTY DONATIONS.—The 
amount allowed as a credit under subsection (a)(1) 
shall not exceed $50,000. 
‘‘(2) INTERN CREDIT AMOUNT.— 
‘‘(A) IN GENERAL.—The amount allowed 
as a credit under subsection (a)(2) with respect 
to a qualified intern shall be the amount equal 
to $100 multiplied by the number of months 
during the taxable year in which the intern was 
an employee of the taxpayer.
‘‘(B) AGGREGATE
PER
INTERN
CREDIT 
AMOUNTS.—The aggregate amount allowed to 
the taxpayer as a credit under subsection (a)(2) 
for the taxable year shall not exceed $6,000. 
‘‘(c) QUALIFIED PROPERTY DONATIONS.—For pur-
poses of this section, the term ‘qualified property dona-
tions’ means a charitable contribution (as defined in sec-
tion 170(c)) of tangible personal property if— 
‘‘(1) the contribution is to an educational orga-
nization described in section 170(b)(1)(A)(ii) which 
is a secondary school or community college, 
‘‘(2) substantially all of the use of the property 
by the donee is for use within the United States for 
educational purposes that are related to the purpose 
or function of the donee, 
‘‘(3) the property is not transferred by the 
donee in exchange for money, other property, or 
services, except for shipping, installation and trans-
fer costs, 
‘‘(4) the property will fit productively into the 
donee’s education plan, 
‘‘(5) the donee’s use and disposition of the 
property will be in accordance with the provisions of 
paragraphs (2), (3), and (4), and
‘‘(6) the property meets such standards, if any, 
as the Secretary may prescribe by regulation to as-
sure that the property meets minimum functionality 
and suitability standards for educational purposes. 
‘‘(d) QUALIFIED INTERN.—For purposes of this sec-
tion— 
‘‘(1) IN GENERAL.—The term ‘qualified intern’ 
means an individual— 
‘‘(A) who is enrolled full-time as a student 
in a secondary school or community college, and 
‘‘(B) who is employed for not more than 
20 hours per week by the taxpayer as part of 
a vocational education course approved by such 
school or college. 
‘‘(2) SECONDARY
SCHOOL.—The term ‘sec-
ondary school’ means a secondary school (as defined 
by section 9101(38) of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 7801(38)) 
which offers a program of education in vocational 
education. 
‘‘(3) 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 at an accredited institution and whose 
highest degree offered is predominantly the associate 
degree. 
‘‘(e) AGGREGATION RULE.—For purposes of sub-
section (b), all persons treated as a single employer under 
subsection (a) or (b) of section 52 or subsection (n) or 
(o) of section 414 shall be treated as one person. 
‘‘(f) COORDINATION WITH SECTION 170(b).—The 
limitation which would (but for this subsection) apply 
under section 170(b) for any taxable year shall be reduced 
(but not below zero) by the fair market value of property 
taken into account in determining the credit allowed under 
subsection (a)(1) for such year.’’. 
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to general business credit) 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 following new paragraph: 
‘‘(20) in the case of a corporation (as defined 
in section 170(e)(4)(D)), the vocational education 
donation credit determined under section 45J(a).’’. 
(c) DENIAL OF DOUBLE BENEFIT.—Section 280C of 
such Code (relating to certain expenses for which credits
are allowable) is amended by adding at the end the fol-
lowing new subsection: 
‘‘(e) VOCATIONAL EDUCATION DONATIONS.—The de-
duction otherwise allowed for amounts taken into account 
under section 45J shall be reduced by the amount of the 
credit determined under section 45J(a) with respect to 
such amounts.’’. 
(d) CONFORMING AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of chapter 
1 of such Code is amended by inserting after the item 
relating to section 45I the following new item: 
‘‘Sec. 45J. Donations to secondary schools and community colleges for voca-
tional education purposes.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004. 
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