I
106TH CONGRESS
2D SESSION
H. R. 5597
To amend the Internal Revenue Code of 1986 to allow employers a credit
against income tax for internships and fellowships related to information
technology.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 27, 2000
Ms. MILLENDER-MCDONALD 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 em-
ployers a credit against income tax for internships and
fellowships related to information technology.
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 ‘‘Technology Training
Tax Credit Act of 2000’’.
SEC. 2. CREDIT FOR INTERNSHIPS AND FELLOWSHIPS RE-
LATING TO INFORMATION TECHNOLOGY.
(a) GENERAL RULE.—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 thereof the following new section:
‘‘SEC. 45D. INTERNSHIPS AND FELLOWSHIPS RELATING TO
INFORMATION TECHNOLOGY.
‘‘(a) GENERAL RULE.—For purposes of section 38,
the amount of the information technology internship and
fellowship credit determined under this section for the tax-
able year is 75 percent of the qualified technology training
expenses paid or incurred by the taxpayer during the tax-
able year.
‘‘(b) INCREASE IN PERCENTAGE WITH RESPECT TO
MEMBERS OF TARGETED GROUPS AND EMPLOYEE RE-
SIDING IN CERTAIN AREAS.—Subsection (a) shall be ap-
plied by substituting ‘100 percent’ for ‘75 percent’ in the
case of qualified technology training expenses with respect
to an eligible individual and who—
‘‘(1) is a member of a targeted group (as de-
fined in section 51(d)), or
‘‘(2) resides in—
‘‘(A) an empowerment zone or enterprise
community designated under section 1391,
‘‘(B) a school district in which 50 percent
or more of the students are eligible for free or
reduced-cost lunches under the school lunch
program established under the National School
Lunch Act, or
‘‘(C) in an area designated as a disaster
area by the Secretary of Agriculture or by the
President under the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act in
the taxable year or the 5 preceding taxable
years.
For purposes of the preceding sentence, the deter-
mination of whether an individual is a member of a
targeted group or resides in an area described in
paragraph (2) shall be made as of the date on which
the individual is awarded an internship or fellowship
(as the case may be).
‘‘(c) LIMITATIONS.—
‘‘(1) ANNUAL.—The amount of qualified tech-
nology training expenses that may be taken into ac-
count under this section for a taxable year with re-
spect to an eligible individual shall not exceed the
lesser of—
‘‘(A) $10,000, or
‘‘(B) the amount of qualified technology
training expenses paid or incurred in such tax-
able year with respect to such individual.
‘‘(2) 3 YEARS PER INDIVIDUAL.—An individual
shall not be treated as an eligible individual for pur-
poses of this section if the taxpayer was allowed a
credit under subsection (a) with respect to such indi-
vidual in any 3 prior taxable year.
‘‘(d) 
QUALIFIED
TECHNOLOGY
TRAINING
EX-
PENSES.—For purposes of this section—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the term ‘qualified tech-
nology training expenses’ means amounts paid or in-
curred by the taxpayer under a qualified technology
program in connection with providing internships
and fellowships to eligible individuals.
‘‘(2) 
TRAINING
PROVIDED
IN
UNITED
STATES.—Amounts may be taken into account under
paragraph (1) with respect to any individual only if
substantially all of the education or training pro-
vided such individual during the taxable year with
respect to such amounts is provided in the United
States.
‘‘(e) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED TECHNOLOGY PROGRAM.—
‘‘(A) IN
GENERAL.—The term ‘qualified
technology program’ means a program in which
the taxpayer awards internships or fellowships
‘‘(3) ELIGIBLE EDUCATION INSTITUTION.—The
term ‘eligible education institution’ has the meaning
given to such term by section 25B(f)(2).
‘‘(f) DENIAL OF DOUBLE BENEFIT.—No credit shall
be allowed under this section for any expense for which
a credit or deduction is allowed under any other provision
of this chapter.’’.
(b) CREDIT MADE PART OF GENERAL BUSINESS
CREDIT.—Subsection (b) of section 38 of such Code is
amended by striking ‘‘plus’’ at the end of paragraph (11),
by striking the period at the end of paragraph (12) and
inserting ‘‘, plus’’, and by adding at the end thereof the
following new paragraph:
‘‘(13) the information technology internship and
fellowship credit determined under section 45D(a).’’.
(c) LIMITATION ON CARRYBACK.—Subsection (d) of
section 39 of the Internal Revenue Code of 1986 (relating
to carryback and carryforward of unused credits) is
amended by adding at the end the following:
‘‘(9) NO CARRYBACK OF INFORMATION TECH-
NOLOGY INTERNSHIP AND FELLOWSHIP CREDIT BE-
FORE
EFFECTIVE
DATE.—No amount of unused
business credit available under section 45D may be
carried back to a taxable year beginning on or before
the date of the enactment of this paragraph.’’.
(d) CLERICAL AMENDMENT.—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 thereof
the following new section:
‘‘Sec. 45D. Internships and fellowships relating to information
technology.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts paid or incurred after
the date of enactment of this Act in taxable years ending
after such date.
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