Public Private Vocational Partnership Act of 2005 - Amends the Internal Revenue Code to allow certain corporations who employ interns enrolled full-time in vocational programs in secondary schools or community colleges a business tax credit for donations of tangible personal property to such schools and colleges. Bases the credit on the fair market value of the property donated and the number of months such interns are employed by the taxpayer.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2008 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 2008
To amend the Internal Revenue Code of 1986 to allow a business credit
for donations for vocational educational purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 28, 2005
Mr. Pombo 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 a business credit
for donations for vocational educational 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 ``Public Private Vocational
Partnership Act of 2005''.
SEC. 2. DONATIONS TO SECONDARY SCHOOLS AND COMMUNITY COLLEGES FOR
VOCATIONAL EDUCATION PURPOSES.
(a) In General.--Subpart D of part IV of subchapter 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. 45J. DONATIONS TO SECONDARY SCHOOLS AND COMMUNITY COLLEGES FOR
VOCATIONAL EDUCATION PURPOSES.
``(a) General Rule.--For purposes of section 38, in the case of a
corporation (as defined in section 170(e)(4)(D)), the vocational
education donation credit determined under this section for the taxable
year is an amount equal to the sum of--
``(1) 90 percent of the fair market value of qualified
property donations made during the taxable year, plus
``(2) the aggregate of the intern credit amounts.
``(b) Limitations.--
``(1) Qualified property donations.--The amount allowed as
a credit under subsection (a)(1) shall not exceed $50,000.
``(2) Intern credit amount.--
``(A) In general.--The amount allowed as a credit
under subsection (a)(2) with respect to a qualified
intern shall be the amount equal to $100 multiplied by
the number of months during the taxable year in which
the intern was an employee of the taxpayer.
``(B) Aggregate per intern credit amounts.--The
aggregate amount allowed to the taxpayer as a credit
under subsection (a)(2) for the taxable year shall not
exceed $6,000.
``(c) Qualified Property Donations.--For purposes of this section,
the term `qualified property donations' means a charitable contribution
(as defined in section 170(c)) of tangible personal property if--
``(1) the contribution is to an educational organization
described in section 170(b)(1)(A)(ii) which is a secondary
school or community college,
``(2) substantially all of the use of the property by the
donee is for use within the United States for educational
purposes that are related to the purpose or function of the
donee,
``(3) the property is not transferred by the donee in
exchange for money, other property, or services, except for
shipping, installation and transfer costs,
``(4) the property will fit productively into the donee's
education plan,
``(5) the donee's use and disposition of the property will
be in accordance with the provisions of paragraphs (2), (3),
and (4), and
``(6) the property meets such standards, if any, as the
Secretary may prescribe by regulation to assure that the
property meets minimum functionality and suitability standards
for educational purposes.
``(d) Qualified Intern.--For purposes of this section--
``(1) In general.--The term `qualified intern' means an
individual--
``(A) who is enrolled full-time as a student in a
secondary school or community college, and
``(B) who is employed for not more than 20 hours
per week by the taxpayer as part of a vocational
education course approved by such school or college.
``(2) Secondary school.--The term `secondary school' means
a secondary school (as defined by section 9101(38) of the
Elementary and Secondary Education Act of 1965 (20 U.S.C.
7801(38)) which offers a program of education in vocational
education.
``(3) Community college.--The term `community college'
means a public or nonprofit private postsecondary regionally
accredited institution that provides not less than a 2-year
program of instruction that is acceptable for full credit
toward a bachelor's degree at an accredited institution and
whose highest degree offered is predominantly the associate
degree.
``(e) Aggregation Rule.--For purposes of subsection (b), all
persons treated as a single employer under subsection (a) or (b) of
section 52 or subsection (n) or (o) of section 414 shall be treated as
one person.
``(f) Coordination With Section 170(b).--The limitation which would
(but for this subsection) apply under section 170(b) for any taxable
year shall be reduced (but not below zero) by the fair market value of
property taken into account in determining the credit allowed under
subsection (a)(1) for such year.''.
(b) Credit to Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code (relating to general business credit) is
amended by striking ``plus'' at the end of paragraph (18), by striking
the period at the end of paragraph (19) and inserting ``, plus'', and
by adding at the end the following new paragraph:
``(20) in the case of a corporation (as defined in section
170(e)(4)(D)), the vocational education donation credit
determined under section 45J(a).''.
(c) Denial of Double Benefit.--Section 280C of such Code (relating
to certain expenses for which credits are allowable) is amended by
adding at the end the following new subsection:
``(e) Vocational Education Donations.--The deduction otherwise
allowed for amounts taken into account under section 45J shall be
reduced by the amount of the credit determined under section 45J(a)
with respect to such amounts.''.
(d) Conforming Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 45I the following new
item:
``Sec. 45J. Donations to secondary schools and community colleges for
vocational education purposes.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2004.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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