I 
108TH CONGRESS 
1ST SESSION H. R. 3064
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 
SEPTEMBER 10, 2003
Mr. EHLERS 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 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 2003’’. 
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
(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 36 as section 37 and by inserting after 
section 35 the following new section: 
‘‘SEC. 36. 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 sec-
tion—
‘‘(1) IN GENERAL.—The term ‘eligible teacher’ 
means, with respect to a taxable year, any indi-
vidual—
‘‘(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 received a baccalaureate or simi-
lar degree with a major in mathematics, 
science, engineering, or technology from a quali-
fied educational institution, and 
‘‘(D) who is highly qualified (as defined in 
section 9101(23) of the Elementary and Sec-
ondary Education Act of 1965). 
‘‘(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) 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 
which includes (on a rotating basis or other-
wise) practicing mathematicians and scientists 
and representatives from several of the appro-
priate science, mathematics, engineering, and 
technology departments of such institution. 
‘‘(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 ‘‘or 
36’’ after ‘‘section 35’’. 
(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. 36. Tuition for undergraduate education of certain teachers. 
‘‘Sec. 37. 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 
36(c) of the Internal Revenue Code of 1986, as added by 
this section) after such date shall be taken into account 
under section 36(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. 45G. 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 (14), 
(B) by striking the period at the end of 
paragraph (15), and inserting ‘‘, plus’’, and 
(C) by adding at the end the following new 
paragraph: 
‘‘(16) the elementary and secondary science, 
mathematics, engineering, and technology (SMET) 
contributions credit determined under section 45G.’’. 
(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:
‘‘(11) NO CARRYBACK OF SECTION 45G 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 
45G may be carried back to a taxable year beginning 
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. 45G. 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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