Home > 106th Congressional Bills > H.R. 5598 (ih) For the relief of Barbara Makuch. [Introduced in House] ...H.R. 5598 (ih) For the relief of Barbara Makuch. [Introduced in House] ...
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 employers a credit
against income tax for internships and fellowships related to
information technology.
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 ``Technology Training Tax Credit Act
of 2000''.
SEC. 2. CREDIT FOR INTERNSHIPS AND FELLOWSHIPS RELATING TO INFORMATION
TECHNOLOGY.
(a) General Rule.--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 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 taxable year is 75 percent of the qualified
technology training expenses paid or incurred by the taxpayer during
the taxable year.
``(b) Increase in Percentage With Respect to Members of Targeted
Groups and Employee Residing in Certain Areas.--Subsection (a) shall be
applied 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 defined 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 Disaster Relief and Emergency
Assistance Act in the taxable year or the 5 preceding
taxable years.
For purposes of the preceding sentence, the determination 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 technology training
expenses that may be taken into account under this section for
a taxable year with respect 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 taxable year with
respect to such individual.
``(2) 3 years per individual.--An individual shall not be
treated as an eligible individual for purposes of this section
if the taxpayer was allowed a credit under subsection (a) with
respect to such individual in any 3 prior taxable year.
``(d) Qualified Technology Training Expenses.--For purposes of this
section--
``(1) In general.--Except as otherwise provided in this
subsection, the term `qualified technology training expenses'
means amounts paid or incurred 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 provided 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 for work at the taxpayer
which provides training in computer programming,
computer systems analysis, computer science, computer
engineering, or other information technology
discipline.
``(B) Partnership requirement.--A program shall not
be treated as a qualified technology program for
purposes of subparagraph (A) unless--
``(i) such program is a partnership between
the taxpayer and a state training program or an
eligible education institution, and
``(ii) the taxpayer pays or incurs at least
50 percent of the technology training expenses
under such program.
``(2) Eligible individual.--The term `eligible individual'
means an individual who--
``(A) is a citizen, national, or lawful permanent
resident of the United States, and
``(B) first becomes an employee of the taxpayer on
the date such individual begins the internship or
fellowship with respect to which such expenses are
qualified technology training expenses.
``(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 technology internship and
fellowship credit before 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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