(1) IN GENERAL.—The Secretary of Education 
may make grants to State educational agencies for 
the purpose of making subgrants to alternative 
schools or programs that agree to implement a com-
munity service requirement and thereby reduce 
youth and gang violence. 
(2) APPLICATION.—To seek a grant under this 
section, a State educational agency shall submit an 
application to the Secretary at such time, in such 
manner, and containing such information as the Sec-
retary may require. 
(b) SUBGRANTS TO ALTERNATIVE SCHOOLS OR PRO-
GRAMS.— 
(1) IN GENERAL.—A State educational agency 
receiving a grant under this section shall use the 
grant to make subgrants to alternative schools or 
programs that agree to require each secondary 
school student enrolled in the school or program— 
(A) to perform not less than 100 hours of 
community service each school year; and 
(B) to receive training or counseling on 
conflict resolution as a prerequisite to per-
forming such community service. 
(2) APPLICATION.—To seek a subgrant under 
this section, an alternative school or program shall 
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submit an application to the State educational agen-
cy at such time, in such manner, and containing 
such information as the Secretary may require. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘alternative school or program’’ 
means a public school or program designed to ad-
dress student needs that typically cannot be met in 
regular schools because the student is at risk of edu-
cation failure (as indicated by poor grades, truancy, 
disruptive behavior, pregnancy, or similar factors as-
sociated with temporary or permanent withdrawal 
from school). 
(2) The term ‘‘community service’’ means a 
method of service learning— 
(A) under which the student involved 
learns and develops through active participation 
in thoughtfully organized and adult-supervised 
service that— 
(i) is conducted in, and meets the 
needs of, a community; 
(ii) is coordinated with the student’s 
alternative school or program, and with the 
community; and 
(iii) helps foster civic responsibility; 
and 
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(B) that— 
(i) is integrated into and enhances the 
academic curriculum of the student, or the 
educational components of the community 
service program in which the student is en-
rolled; and 
(ii) provides structured time for the 
student to reflect on the service experience. 
(3) The term ‘‘institution of higher education’’ 
has the meaning given to that term in section 101 
of the Higher Education Act of 1965 (20 U.S.C. 
1001). 
(4) The term ‘‘secondary school’’ has the mean-
ing given to that term in section 9101 of the Ele-
mentary and Secondary Education Act of 1965 (20 
U.S.C. 7801). 
(5) The term ‘‘Secretary’’ means the Secretary 
of Education. 
(6) The term ‘‘State educational agency’’ has 
the meaning given to that term in section 9101 of 
the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7801). 
SEC. 3. COMMUNITY SERVICE DEDUCTION. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to 
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itemized deductions for individuals and corporations) is 
amended by inserting after section 181 the following new 
section: 
‘‘SEC. 182. COMMUNITY SERVICE DEDUCTION. 
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of a 
business, there shall be allowed as a deduction an amount 
determined in accordance with subsection (b). 
‘‘(b) AMOUNT OF DEDUCTION.—In the case of a 
business, the amount determined under this subsection, 
with respect to a taxable year, is the sum of— 
‘‘(1) $750 per 100 hours of community service 
completed by a qualified student through such busi-
ness during such taxable year, plus 
‘‘(2) $2,000 per qualified employee employed 
through such business. 
‘‘(c) DOLLAR LIMITATION.—In the case of a busi-
ness, the amount determined under subsection (b)(1), with 
respect to each qualified student completing hours of com-
munity service through such business, shall not exceed 
$1,500. 
‘‘(d) DEFINITIONS.—For purposes of this section, 
with respect to a taxable year— 
‘‘(1) QUALIFIED STUDENT.—The term ‘quali-
fied student’ means a student enrolled in an alter-
native school or program (as defined in section 2(c) 
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of the At-Risk Youth Protection Act of 2007) who 
performs community service through a place of busi-
ness located not more than 20 miles from the loca-
tion of the student’s alternative school or program in 
order to comply with such school or program’s com-
munity service requirement. 
‘‘(2) QUALIFIED EMPLOYEE.—With respect to a 
business, the term ‘qualified employee’ means a 
graduate of an alternative school or program (as de-
fined in section 2(c) of the At-Risk Youth Protection 
Act of 2007) who completes 1 year of employment 
through such business during such taxable year. 
‘‘(3) COMMUNITY SERVICE.—The term ‘commu-
nity service’ has the meaning given to such term in 
section 2(c) of the At-Risk Youth Protection Act of 
2007. 
‘‘(e) REGULATIONS.—The Secretary shall prescribe 
such regulations as may be necessary or appropriate to 
carry out the purposes of this section and to ensure that 
the community service completed by a qualified student 
through a business that is allowed a deduction under sub-
section (a) meets the requirements described in section 
2(c) of the At-Risk Youth Protection Act of 2007.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 of such Code 
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is amended by inserting after the item relating to section 
181 the following new item: 
‘‘Sec. 182. Community service deduction.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
Æ 
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