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.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4727 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 4727
To provide for loan forgiveness for STEM teachers, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 27, 2021
Mr. Swalwell (for himself and Mr. Khanna) introduced the following
bill; which was referred to the Committee on Ways and Means, and in
addition to the Committee on Education and Labor, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
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;''.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR H3920)
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
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