STEM K to Career Act
Bill: H.R.4727 | Sponsor: Rep. Swalwell, Eric (D-CA)
Policy area: Education

Summary:
STEM K to Career Act
This bill provides for loan forgiveness and tax credits related to science, technology, engineering, or mathematics (STEM) education and addresses work-study for students employed in STEM fields.
The bill requires the Department of Education to forgive student loan obligations of borrowers employed as full-time teachers of STEM in elementary or secondary schools in which the number of low-income children exceeds a certain percentage. Portions of the student loan debt, including interest, shall be forgiven on the basis of years of service, with 100% forgiven for five years of teacher service.
The bill allows (1) an increased tax deduction for expenses of elementary and secondary school teachers for STEM education supplies; (2) a tax credit for the employment of STEM interns; and (3) a tax credit for employment of individuals who participated in an apprenticeship program in a STEM field, with the amount determined according to the degree of completion of the program.
Beginning with FY2022, an institution of higher education must use at least 7% of federal work-study funds to compensate students employed in STEM fields.

To provide for loan forgiveness for STEM teachers, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``STEM K to Career Act''.

SEC. 2. LOAN FORGIVENESS FOR STEM TEACHERS.

    Part G of title IV of the Higher Education Act of 1965 (20 U.S.C. 
1088 et seq.) is amended by adding at the end the following:

``SEC. 495. LOAN FORGIVENESS FOR STEM TEACHERS.

    ``(a) Loan Forgiveness Authorized.--The Secretary shall forgive, in 
accordance with this section, the qualified loan amount described in 
subsection (c) of the student loan obligation of a borrower who--
            ``(1) is employed as a full-time STEM teacher for service 
        in an academic year (including such a STEM teacher employed by 
        an educational service agency)--
                    ``(A) in a public or other nonprofit private 
                elementary school or secondary school, which, for the 
                purpose of this paragraph and for that year--
                            ``(i) has been determined by the Secretary 
                        (pursuant to regulations of the Secretary and 
                        after consultation with the State educational 
                        agency of the State in which the school is 
                        located) to be a school in which the number of 
                        children meeting a measure of poverty under 
                        section 1113(a)(5) of the Elementary and 
                        Secondary Education Act of 1965, exceeds 30 
                        percent of the total number of children 
                        enrolled in such school; and
                            ``(ii) is in the school district of a local 
                        educational agency which is eligible in such 
                        year for assistance pursuant to part A of title 
                        I of the Elementary and Secondary Education Act 
                        of 1965; or
                    ``(B) in one or more public, or nonprofit private, 
                elementary schools or secondary schools or locations 
                operated by an educational service agency that have 
                been determined by the Secretary (pursuant to 
                regulations of the Secretary and after consultation 
                with the State educational agency of the State in which 
                the educational service agency operates) to be a school 
                or location at which the number of children taught who 
                meet a measure of poverty under section 1113(a)(5) of 
                the Elementary and Secondary Education Act of 1965, 
                exceeds 30 percent of the total number of children 
                taught at such school or location; and
            ``(2) is not in default on a loan for which the borrower 
        seeks forgiveness.
    ``(b) Method of Loan Forgiveness.--To provide loan forgiveness 
under subsection (a), the Secretary shall carry out a program--
            ``(1) through the holder of the loan, to assume the 
        obligation to repay a qualified loan amount for a loan made, 
        insured, or guaranteed under part B (other than an excepted 
        PLUS loan or an excepted consolidation loan (as such terms are 
        defined in section 493C(a))); and
            ``(2) to cancel a qualified loan amount for a loan made 
        under part D (other than an excepted PLUS loan or an excepted 
        consolidation loan).
    ``(c) Qualified Loan Amount.--
            ``(1) Forgiveness of percentage of debt based on years of 
        service.--For each complete year of service by a borrower as a 
        STEM teacher in accordance with this section after the date of 
        enactment of the STEM K to Career Act, the Secretary shall 
        forgive the student loan obligation of the borrower at the rate 
        of 15 percent of such obligation for the first or second year 
        of such service, 20 percent of such obligation for the third or 
        fourth year of such service, and 30 percent of such obligation 
        for the fifth year of such service.
            ``(2) Principal and interest forgiven.--If a portion of a 
        loan is forgiven under this section for any year, the entire 
        amount of interest on such loan which accrues for such year 
        shall be forgiven.
    ``(d) Special Rules.--
            ``(1) List of schools.--If the list of schools in which a 
        STEM teacher may perform service pursuant to subsection (a)(1) 
        is not available before May 1 of any year, the Secretary may 
        use the list for the year preceding the year for which the 
        determination is made to make such service determination.
            ``(2) Continuing eligibility.--Any teacher who performs 
        service in a school which--
                    ``(A) meets the requirements of subsection (a)(1) 
                in any year; and
                    ``(B) in a subsequent year fails to meet the 
                requirements of such subsection,
        may continue to teach in such school and shall be eligible for 
        loan forgiveness pursuant to this section such subsequent 
        years.
            ``(3) Promissory note conflicts.--An individual with an 
        outstanding student loan obligation who performs service 
        described in subsection (a)(1) in accordance with this section 
        shall be eligible for forgiveness under this section for such 
        service notwithstanding any contrary provision of the 
        promissory note under which the loan or loans were made.
            ``(4) Forgiveness not considered income.--The amount of a 
        loan, and interest on a loan, which is forgiven under this 
        section shall not be considered income for purposes of the 
        Internal Revenue Code of 1986.
            ``(5) No refunds.--Nothing in this subsection shall be 
        construed to authorize refunding of any repayment of a loan.
            ``(6) No double benefit.--No borrower may, for the same 
        service, receive a benefit under both this section and subtitle 
        D of title I of the National and Community Service Act of 1990 
        (42 U.S.C. 12601 et seq.).
    ``(e) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out this section.
    ``(f) Definitions.--For the purposes of this section--
            ``(1) the term `year' where applied to service as a STEM 
        teacher means academic year as defined by the Secretary; and
            ``(2) the term `STEM teacher' means a teacher of science, 
        technology, engineering, or mathematics.''.

SEC. 3. ABOVE-THE-LINE DEDUCTION FOR STEM EDUCATION MATERIALS.

    (a) In General.--Section 62(a)(2)(D) of the Internal Revenue Code 
of 1986 is amended by adding at the end the following flush matter:
                ``In the case of taxable years beginning after December 
                31, 2021, the $250 amount in clause (i) shall be 
                increased by an amount equal to so much of the amounts 
                paid or incurred by the eligible educator for STEM 
                education supplies as does not exceed $250.''.
    (b) Inflation Adjustment.--Section 62(d)(3) of such Code is amended 
to read as follows:
            ``(3) Inflation adjustment.--
                    ``(A) In general.--In the case of any taxable year 
                beginning after 2017, the first $250 amount in 
                subsection (a)(2)(D) shall be increased by an amount 
                equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2016' 
                        for `calendar year 2018' in subparagraph 
                        (A)(ii) thereof.
                    ``(B) STEM education supplies.--In the case of any 
                taxable year beginning after 2021, the $250 amount in 
                subsection (a)(2)(D) shall be increased by an amount 
                equal to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2020' 
                        for `calendar year 2018' in subparagraph 
                        (A)(ii) thereof.
                    ``(C) Rounding.--Any increase determined under 
                subparagraph (A) or (B) shall be rounded to the nearest 
                multiple of $50.''.
    (c) STEM Education Supplies Defined.--Section 62(d) of such Code, 
as amended by subsection (b), is amended by redesignating paragraphs 
(2) and (3) as paragraphs (3) and (4), respectively, and by inserting 
after paragraph (1) the following new paragraph:
            ``(2) STEM education supplies.--For purposes of subsection 
        (a)(2)(D), the term `STEM education supplies' means expenses 
        for books, supplies, equipment, and other materials used in 
        connection with teaching science, technology, engineering, or 
        math.''.
    (d) Clerical Amendment.--The heading for section 62(d) of such Code 
is amended by striking ``Definition; Special Rules'' and inserting 
``Elementary and Secondary School Teachers''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2020.

SEC. 4. STEM INTERNSHIP TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 45U. STEM INTERNSHIP CREDIT.

    ``(a) General Rule.--For purposes of section 38, in the case of an 
eligible employer, the STEM internship credit determined under this 
section for the taxable year is equal to $2,000 for each qualified STEM 
intern employed by the employer during the taxable year.
    ``(b) Limitation.--The total amount of the credit allowed under 
subsection (a) to a taxpayer for a taxable year may not exceed $50,000.
    ``(c) Definitions.--For purposes of subsection (a)--
            ``(1) Qualified stem intern.--The term `qualified STEM 
        intern' means an individual who is employed under an internship 
        program of an eligible employer under which--
                    ``(A) each intern is paid not less than the wage in 
                effect under section 6(a) of the Fair Labor Standards 
                Act of 1938,
                    ``(B) each intern is employed for not less than 20 
                hours per week by the eligible employer in a position 
                related to the career goals of the intern,
                    ``(C) each intern completes not less than 6 weeks 
                of employment with the eligible employer as an intern, 
                and
                    ``(D) each intern is a student who is enrolled 
                full-time in a science, technology, engineering, or 
                math program (including a program of study abroad 
                approved for credit by the eligible institution at 
                which such student is enrolled) leading to a recognized 
                undergraduate or graduate degree at an institution of 
                higher education that is an eligible institution in 
                accordance with the provisions of section 487 of the 
                Higher Education Act of 1965 (20 U.S.C. 1094) and is 
                not enrolled in an elementary or secondary school.
            ``(2) Eligible employer.--
                    ``(A) In general.--The term `eligible employer' 
                means an employer who employed on average not more than 
                500 full-time employees on business days during the 
                preceding calendar year. For purposes of the preceding 
                sentence, any individual with respect to whom a credit 
                is allowed under this section shall not be taken into 
                account.
                    ``(B) Rules for determining employer size.--For 
                purposes of subparagraph (A)--
                            ``(i) Application of aggregation rule for 
                        employers.--All persons treated as a single 
                        employer under subsection (b), (c), (m), or (o) 
                        of section 414 shall be treated as 1 employer.
                            ``(ii) Employers not in existence in 
                        preceding year.--In the case of an employer 
                        which was not in existence throughout the 
                        preceding calendar year, the determination of 
                        whether such employer is an eligible employer 
                        shall be based on the average number of 
                        employees that it is reasonably expected such 
                        employer will employ on business days in the 
                        current calendar year.
                            ``(iii) Predecessors.--Any reference in 
                        this paragraph to an employer shall include a 
                        reference to any predecessor of such 
                        employer.''.
    (b) Credit Made Part of General Business Credit.--Section 38(b) of 
such Code is amended by striking ``plus'' at the end of paragraph (33), 
by striking the period at the end of paragraph (34) and inserting ``, 
plus'', and by adding at the end the following new paragraph:
            ``(35) the STEM internship credit determined under section 
        45T(a).''.
    (c) Denial of Double Benefit.--Section 280C(a) of such Code is 
amended by inserting ``45U(a),'' after ``45T(a),''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45U. STEM internship credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.

SEC. 5. STEM APPRENTICESHIP TAX CREDIT.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986, as amended by section 4, is 
amended by adding at the end the following new section:

``SEC. 45V. STEM APPRENTICESHIP CREDIT.

    ``(a) General Rule.--For purposes of section 38, in the case of an 
eligible employer the STEM apprenticeship credit determined under this 
section for the taxable year is an amount equal to the taxpayer's 
aggregate STEM credit amount for the taxable year.
    ``(b) Limitation.--The total amount of the credit allowed under 
subsection (a) to a taxpayer for a taxable year may not exceed $50,000.
    ``(c) STEM Credit Amount.--For purposes of subsection (a), the STEM 
credit amount with respect to an individual shall be--
            ``(1) $2,000 in the case of a new apprentice,
            ``(2) $3,000 in the case of a mid-career apprentice,
            ``(3) $3,000 in the case of an unemployed apprentice, and
            ``(4) 5,000 in the case of a completed apprenticeship 
        employee.
    ``(d) Definitions.--For purposes of subsection (a)--
            ``(1) Eligible employer.--
                    ``(A) In general.--The term `eligible employer' 
                means an employer who employed on average not more than 
                500 full-time employees on business days during the 
                preceding calendar year. For purposes of the preceding 
                sentence, any individual with respect to whom a credit 
                is allowed under this section shall not be taken into 
                account.
                    ``(B) Rules for determining employer size.--For 
                purposes of subparagraph (A)--
                            ``(i) Application of aggregation rule for 
                        employers.--All persons treated as a single 
                        employer under subsection (b), (c), (m), or (o) 
                        of section 414 shall be treated as 1 employer.
                            ``(ii) Employers not in existence in 
                        preceding year.--In the case of an employer 
                        which was not in existence throughout the 
                        preceding calendar year, the determination of 
                        whether such employer is an eligible employer 
                        shall be based on the average number of 
                        employees that it is reasonably expected such 
                        employer will employ on business days in the 
                        current calendar year.
                            ``(iii) Predecessors.--Any reference in 
                        this paragraph to an employer shall include a 
                        reference to any predecessor of such employer.
            ``(2) New apprentice.--The term `new apprentice' means an 
        employee who, with respect to an eligible employer--
                    ``(A) completed during the taxable year a qualified 
                apprenticeship program, and
                    ``(B) prior to beginning the qualified 
                apprenticeship program, has not received compensation 
                during the preceding 1-year period for services 
                provided to the eligible employer.
            ``(3) Mid-career apprentice.--The term `mid-career 
        apprentice' means an employee who--
                    ``(A) prior to being employed by the eligible 
                employer was either--
                            ``(i) employed in an industry sector 
                        different from the industry section the 
                        eligible employer is in, as determined under 
                        regulations of the Secretary, or
                            ``(ii) or was unemployed, and
                    ``(B) completed during the taxable year a qualified 
                apprenticeship program.
            ``(4) Completed apprenticeship employee.--The term 
        `completed apprenticeship employee' means an employee who, with 
        respect to an eligible employer, completed 1 year of service 
        with the eligible employer during the taxable year after 
        completing a qualified apprenticeship program.
            ``(5) Qualified apprenticeship program.--The term 
        `qualified apprenticeship program' means an apprenticeship 
        program in a field of science, technology, engineering, or math 
        that is recognized under any program administered by the 
        Secretary of Labor.
            ``(6) Unemployed.--An individual is unemployed if the 
        individual is certified by the designated local agency as being 
        in receipt of unemployment compensation under State or Federal 
        law for not less than 4 weeks during the 1-year period ending 
        on the hiring date.
            ``(7) Hiring date; designated local agency.--The terms 
        `hiring date' and `designated local agency' have the meanings 
        given such terms by section 51(d)(11) and (12), respectively.
    ``(e) Denial of Double Benefit.--No deduction or credit shall be 
allowed under any other provision of this chapter for any expenses paid 
or incurred with respect to an individual to the extent of the credit 
allowed under this section with respect to the individual.''.
    (b) Credit Made Part of General Business Credit.--Subsection (b) of 
section 38 of such Code, as amended by section 4, is amended by 
striking ``plus'' at the end of paragraph (34), by striking the period 
at the end of paragraph (35) and inserting ``, plus'', and by adding at 
the end the following new paragraph:
            ``(36) the STEM apprenticeship credit determined under 
        section 45U(a).''.
    (c) Denial of Double Benefit.--Section 280C(a) of such Code is 
amended by inserting ``45V(a),'' after ``45U(a),''.
    (d) Clerical Amendment.--The table of sections for subpart D of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by adding at the end the following new item:

``Sec. 45V. STEM apprenticeship credit.''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2021.

SEC. 6. MANDATORY MINIMUM ALLOCATION OF PORTION OF FEDERAL WORK-STUDY 
              PROGRAM FUNDS FOR STEM EMPLOYMENT.

    (a) Mandatory Minimum Allocation for STEM Employment.--Section 
443(b)(2) of the Higher Education Act of 1965 (20 U.S.C. 2753(b)(2)) is 
amended--
            (1) by striking ``and'' at the end of subparagraph (A);
            (2) by redesignating subparagraph (B) as subparagraph (C); 
        and
            (3) by inserting after subparagraph (A) the following new 
        subparagraph:
                    ``(B) for fiscal year 2022 and succeeding fiscal 
                years, an institution shall use at least 7 percent of 
                the total amount of funds granted to such institution 
                under this section for such fiscal year to compensate 
                students employed in science, technology, engineering, 
                or mathematics, except that the Secretary may waive 
                this subparagraph if the Secretary determines that 
                enforcing this subparagraph would cause hardship for 
                students at the institution.''.
    (b) Conforming Amendment Relating to Off-Campus STEM Employment for 
Students at Proprietary Institutions of Higher Education.--Section 
443(b)(8) of such Act (20 U.S.C. 2753(b)(8)) is amended--
            (1) by striking ``or'' at the end of subparagraph (A);
            (2) by adding ``or'' at the end of subparagraph (B); and
            (3) by adding at the end the following new subparagraph:
                    ``(C) in science, technology, engineering, or 
                mathematics, in accordance with paragraph (2)(B) of 
                this subsection;''.
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