event of such an assumption, the person
acquiring the interest in the facility shall
be treated as the taxpayer for purposes of
assessing any recapture liability (computed
as if there had been no change in owner-
ship).
‘‘(4) SPECIAL RULES.—
‘‘(A) TAX
BENEFIT
RULE.—The tax for
the taxable year shall be increased under para-
graph (1) only with respect to credits allowed
by reason of this section which were used to re-
duce tax liability. In the case of credits not so
used to reduce tax liability, the carryforwards
and carrybacks under section 39 shall be appro-
priately adjusted.
‘‘(B) NO CREDITS AGAINST TAX.—Any in-
crease in tax under this subsection shall not be
treated as a tax imposed by this chapter for
purposes of determining the amount of any
credit under subpart A, B, or D of this part.
‘‘(C) NO RECAPTURE BY REASON OF CAS-
UALTY LOSS.—The increase in tax under this
subsection shall not apply to a cessation of op-
eration of the facility as a qualified child care
facility by reason of a casualty loss to the ex-
tent such loss is restored by reconstruction or
replacement within a reasonable period estab-
lished by the Secretary.
‘‘(e) 
SPECIAL
RULES.—For 
purposes 
of 
this
section—
‘‘(1) AGGREGATION RULES.—All persons which
are treated as a single employer under subsections
(a) and (b) of section 52 shall be treated as a single
taxpayer.
‘‘(2) PASS-THRU IN THE CASE OF ESTATES AND
TRUSTS.—Under regulations prescribed by the Sec-
retary, rules similar to the rules of subsection (d) of
section 52 shall apply.
‘‘(3) ALLOCATION IN THE CASE OF PARTNER-
SHIPS OR JOINT VENTURES.—In the case of partner-
ships or joint ventures, the credit shall be allocated
among partners or members of the joint venture
under regulations prescribed by the Secretary.
‘‘(f) NO DOUBLE BENEFIT.—
‘‘(1) REDUCTION IN BASIS.—For purposes of
this subtitle—
‘‘(A) IN GENERAL.—If a credit is deter-
mined under this section with respect to any
property by reason of expenditures described in
subsection (c)(1)(A), the basis of such property
shall be reduced by the amount of the credit so
determined.
‘‘(B) CERTAIN
DISPOSITIONS.—If during
any taxable year there is a recapture amount
determined with respect to any property the
basis of which was reduced under subparagraph
(A), the basis of such property (immediately be-
fore the event resulting in such recapture) shall
be increased by an amount equal to such recap-
ture amount. For purposes of the preceding
sentence, the term ‘recapture amount’ means
any 
increase 
in 
tax 
(or 
adjustment 
in
carrybacks or carryovers) determined under
subsection (d).
‘‘(2) OTHER DEDUCTIONS AND CREDITS.—No
deduction or credit shall be allowed under any other
provision of this chapter with respect to the amount
of the credit determined under this section.
‘‘(g) TERMINATION.—This section shall not apply to
taxable years beginning after December 31, 2003.’’
(b) CONFORMING AMENDMENTS.—
(1) Section 38(b) of the Internal Revenue Code
of 1986 is amended—
(A) by striking out ‘‘plus’’ at the end of
paragraph (12),
(B) by striking out the period at the end
of paragraph (13), and inserting a comma and
‘‘plus’’, and
(C) by adding at the end the following new
paragraph:
‘‘(14) the employer-provided child care credit
determined under section 45E.’’
(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. 45E. Employer-provided child care credit.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
SEC. 202. CHARITABLE CONTRIBUTIONS OF SCIENTIFIC
EQUIPMENT, COMPUTER TECHNOLOGY AND
EQUIPMENT, 
AND 
OTHER 
SERVICES 
TO
CHILD CARE PROVIDERS AND TO ELEMEN-
TARY AND SECONDARY SCHOOLS.
(a) SCIENTIFIC EQUIPMENT.—
(1) IN GENERAL.—Subparagraph (B) of section
170(e)(4) of the Internal Revenue Code of 1986 (re-
lating to special rule for contributions of scientific
property used for research) is amended to read as
follows:
‘‘(B) QUALIFIED RESEARCH, CHILD CARE,
OR EDUCATION CONTRIBUTION.—For purposes
of this paragraph, the term ‘qualified research,
child care, or education contribution’ means a
charitable contribution by a corporation of tan-
gible personal property described in paragraph
(1) of section 1221, but only if—
‘‘(i) the contribution is to—
‘‘(I) an organization described in
section 501(c)(3) and exempt from
taxation under section 501(a) which is
a child care facility in compliance with
all applicable laws and regulations of
the State or unit of local government
in which such facility is located on the
date of such contribution,
‘‘(II) an organization described
in section 501(c)(3) and exempt from
taxation under section 501(a) which is
a professional or educational support
entity for such a child care facility,
‘‘(III) an educational organiza-
tion 
described 
in 
subsection
(b)(1)(A)(ii),
‘‘(IV) a governmental unit de-
scribed in subsection (c)(1), or
‘‘(V) an organization described in
section 41(e)(6)(B),
‘‘(ii) the contribution is made not
later than 3 years after the date the tax-
payer acquired the property (or in the case
of property constructed by the taxpayer,
the date the construction of the property is
substantially completed),
‘‘(iii) the property is scientific equip-
ment or apparatus substantially all of the
use of which by the donee is for—
‘‘(I) research or experimentation
(within the meaning of section 174),
or for research training, in the United
States 
in 
physical 
or 
biological
sciences,
‘‘(II) activities designed to en-
hance or support the educational or
developmental achievement of children
or youth, or
‘‘(III) in the case of an organiza-
tion described in subclause (I), (II),
(III), or (IV) of clause (i), use within
the United States for educational pur-
poses or support activities related to
the purpose or function of the organi-
zation,
‘‘(iv) the original use of the property
is by donor or the donee,
‘‘(v) the property is not transferred by
the donee in exchange for money, other
property, or services, except for shipping,
installation, and transfer costs, and
‘‘(vi) the taxpayer receives from the
donee a written statement representing
that its use and disposition of the property
will be in accordance with the provisions of
clauses (iv) and (v).’’.
(2) CONFORMING AMENDMENTS.—
(A) Paragraph (4)(A) of section 170(e) of
such Code is amended by striking ‘‘qualified re-
search contribution’’ each place it appears and
inserting ‘‘qualified research, child care, or edu-
cation contribution’’.
(B) The heading for section 170(e)(4) of
such Code is amended by inserting ‘‘, CHILD
CARE, OR EDUCATION’’ after ‘‘RESEARCH’’.
(b) EXPANSION OF RULES RELATING TO CONTRIBU-
TIONS OF COMPUTER TECHNOLOGY AND EQUIPMENT TO
CERTAIN CHILD CARE PROVIDERS.—
(1) IN
GENERAL.—Section 170(e)(6)(B)(i) of
the Internal Revenue Code of 1986 (defining quali-
fied elementary or secondary educational contribu-
tion) is amended by striking ‘‘or’’ at the end of sub-
clause (I), by adding ‘‘or’’ at the end of subclause
(II), and by inserting after subclause (II) the fol-
lowing:
‘‘(III) an entity described in sub-
clause (I) or (II) of paragraph
(4)(B)(i).’’.
(2) CONFORMING AMENDMENTS.—
(A) Section 170(e)(6)(B)(ii) of such Code
is amended by striking ‘‘2 years’’ and inserting
‘‘3 years’’.
(B) Section 170(e)(6)(B)(iv) of such Code
is amended by striking ‘‘grades K–12’’ and in-
serting ‘‘grades preschool–12’’.
(C) Section 170(e)(6) of such Code is
amended by striking ‘‘qualified elementary or
secondary’’ each place it appears and inserting
‘‘qualified child care, elementary, or sec-
ondary’’.
(D) The heading for section 170(e)(6)(B)
of such Code is amended by striking ‘‘QUALI-
FIED ELEMENTARY OR SECONDARY’’ and insert-
ing ‘‘QUALIFIED CHILD CARE, ELEMENTARY, OR
SECONDARY’’.
(E) The heading for section 170(e)(6) of
such Code is amended by striking ‘‘ELEMEN-
TARY
OR
SECONDARY’’ and inserting ‘‘CHILD
CARE OR ELEMENTARY OR SECONDARY’’.
(c) DONATIONS TO CHARITY FOR REFURBISHING.—
(1) 
SCIENTIFIC
EQUIPMENT.—Section
170(e)(4) of the Internal Revenue Code of 1986 is
amended by adding at the end the following:
‘‘(E) DONATIONS TO CHARITY FOR REFUR-
BISHING.—For purposes of this paragraph, a
charitable contribution by a corporation shall be
treated as a qualified research, child care, or
education contribution if—
‘‘(i) such contribution is a contribu-
tion of property described in subparagraph
(B)(iii) to an organization described in sec-
tion 501(c)(3) and exempt from taxation
under section 501(a),
‘‘(ii) such organization repairs and re-
furbishes the property and donates the
property to an organization described in
subparagraph (B)(i), and
‘‘(iii) the taxpayer receives from the
organization to whom the taxpayer contrib-
uted the property a written statement rep-
resenting that its use of the property (and
any use by the organization to which it do-
nates the property) meets the requirements
of this paragraph.’’.
(2) COMPUTER
TECHNOLOGY
AND
EQUIP-
MENT.—Section 170(e)(6) of the Internal Revenue
Code of 1986 is amended by redesignating subpara-
graphs (E) and (F) as subparagraphs (F) and (G),
respectively, and by inserting after subparagraph
(D) the following:
‘‘(E) DONATIONS TO CHARITY FOR REFUR-
BISHING.—For purposes of this paragraph, a
charitable contribution by a corporation shall be
treated as a qualified child care, elementary, or
secondary educational contribution if—
‘‘(i) such contribution is a contribu-
tion of computer technology or equipment
to an organization described in section
501(c)(3) and exempt from taxation under
section 501(a),
‘‘(ii) such organization repairs and re-
furbishes the property and donates the
property to an organization described in
subparagraph (B)(i), and
‘‘(iii) the taxpayer receives from the
organization to whom the taxpayer contrib-
uted the property a written statement rep-
resenting that its use of the property (and
any use by the organization to which it do-
nates the property) meets the requirements
of this paragraph.’’.
(d) CORPORATE DONATIONS OF SERVICES.—Section
170 of the Internal Revenue Code of 1986 is amended by
redesignating subsection (m) as subsection (n) and by in-
serting after subsection (l) the following:
‘‘(m) TREATMENT OF THE DONATION OF CERTAIN
SERVICES.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, 50 percent of the fair market value of chari-
table services contributed by a corporation shall be
treated as a charitable contribution.
‘‘(2) CHARITABLE SERVICES.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘charitable services’ means
transportation services, qualified employee vol-