I
103D CONGRESS
2D SESSION
H. R. 4207
To amend the Internal Revenue Code of 1986 to allow businesses a credit
against income tax for providing work experiences for high school juniors
and seniors for which the students receive credit toward graduation.
IN THE HOUSE OF REPRESENTATIVES
APRIL 13, 1994
Mr. RICHARDSON 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 busi-
nesses a credit against income tax for providing work
experiences for high school juniors and seniors for which
the students receive credit toward graduation.
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 ‘‘Student and Business
Partnership for Credit Act of 1994’’.
SEC. 2. CREDIT FOR PROVIDING EDUCATIONAL WORK EX-
PERIENCES FOR HIGH SCHOOL JUNIORS AND
SENIORS.
(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. 45C. EDUCATIONAL WORK EXPERIENCES FOR HIGH
SCHOOL STUDENTS.
‘‘(a) ALLOWANCE OF CREDIT.—For purposes of sec-
tion 38, in the case of a taxpayer engaged in a trade or
business, the educational work experience credit deter-
mined under this section for any taxable year is $2,000
for each work experience program participant whose work
experience period with the taxpayer ends during such tax-
able year.
‘‘(b) WORK EXPERIENCE PROGRAM PARTICIPANT.—
For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘work experience
program participant’ means any individual who is
performing services for the taxpayer pursuant to a
qualified work experience program.
‘‘(2) QUALIFIED
WORK
EXPERIENCE
PRO-
GRAM.—The term ‘qualified work experience pro-
gram’ means any program if—
‘‘(A) the program is operated by a local
school system,
‘‘(B) only qualified students may partici-
pate in the program,
‘‘(C) the program places qualified students
with 1 or more local business for—
‘‘(i) a work experience that is deter-
mined by the student’s high school prin-
cipal to be appropriate to the educational
needs of the student,
‘‘(ii) a minimum of 10, and a maxi-
mum of 20, hours per week, and
‘‘(iii) a period not to exceed 5 months
during any school year,
‘‘(D) each participant in the program re-
ceives credit toward high school graduation for
satisfactory participation in the program,
‘‘(E) participants in the program do not
receive compensation from any source for serv-
ices performed for any business pursuant to the
program,
‘‘(F) the program requires each business
receiving a student pursuant to the program to
provide such supervision of the student’s work
experience, and such reports to the student’s
high school principal with respect to such expe-
rience, as the such principal may require, and
‘‘(G) such program meets such other re-
quirements as may be prescribed by the Sec-
retary (after consultation with the Secretary of
Education).
‘‘(3) QUALIFIED STUDENT.—The term ‘quali-
fied student’ means any full-time student enrolled in
the 11th or 12th grade at a high school.
‘‘(4) HIGH
SCHOOL.—The term ‘high school’
means a secondary school (as defined in section
1471(21) of the Elementary and Secondary Edu-
cation Act of 1965).
‘‘(c) WORK EXPERIENCE PERIOD.—For purposes of
subsection (a), the term ‘work experience period’ means
the period that an individual performs services for the tax-
payer pursuant to a qualified work experience program.’’
(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 (10), by striking the period
at the end of paragraph (11) and inserting ‘‘, plus’’, and
by adding at the end the following new paragraph:
‘‘(12) in the case of a taxpayer engaged in a
trade or business, the educational work experience
credit determined under section 45C(a).’’
(c) CLERICAL AMENDMENT.—The table of sections
for such subpart D of part IV of subchapter A of chapter
1 of such Code is amended by adding at the end the follow-
ing new item:
‘‘Sec. 45C. Educational work experiences for high school stu-
dents.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after Au-
gust 31, 1994, with respect to work experience periods
ending after such date.
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