text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``National Science Education Tax 
  Incentive for Businesses Act of 2007''.
  
  SEC. 2. CREDITS FOR CERTAIN CONTRIBUTIONS BENEFITING SCIENCE, 
                TECHNOLOGY, ENGINEERING, AND MATHEMATICS EDUCATION AT THE 
                ELEMENTARY AND SECONDARY SCHOOL LEVEL.
  
      (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. 45O. CONTRIBUTIONS BENEFITING SCIENCE, TECHNOLOGY, ENGINEERING, 
                AND MATHEMATICS EDUCATION AT THE ELEMENTARY AND SECONDARY 
                SCHOOL LEVEL.
  
      ``(a) In General.--For purposes of section 38, the elementary and 
  secondary science, technology, engineering, and mathematics (STEM) 
  contributions credit determined under this section for the taxable year 
  is an amount equal to 100 percent of the qualified STEM contributions 
  of the taxpayer for such taxable year.
      ``(b) Qualified STEM Contributions.--For purposes of this section, 
  the term `qualified STEM contributions' means--
              ``(1) STEM school contributions,
              ``(2) STEM teacher externship expenses, and
              ``(3) STEM teacher training expenses.
      ``(c) STEM School Contributions.--For purposes of this section--
              ``(1) In general.--The term `STEM school contributions' 
          means--
                      ``(A) STEM property contributions, and
                      ``(B) STEM service contributions.
              ``(2) STEM property contributions.--The term `STEM property 
          contributions' means the amount which would (but for subsection 
          (f)) be allowed as a deduction under section 170 for a 
          charitable contribution of STEM inventory property if--
                      ``(A) the donee is an elementary or secondary 
                  school described in section 170(b)(1)(A)(ii),
                      ``(B) substantially all of the use of the property 
                  by the donee is within the United States or within the 
                  defense dependents' education system for educational 
                  purposes in any of the grades K-12 that are related to 
                  the purpose or function of the donee,
                      ``(C) the original use of the property begins with 
                  the donee,
                      ``(D) the property will fit productively into the 
                  donee's education plan,
                      ``(E) the property is not transferred by the donee 
                  in exchange for money, other property, or services, 
                  except for shipping, installation and transfer costs, 
                  and
                      ``(F) the donee's use and disposition of the 
                  property will be in accordance with the provisions of 
                  subparagraphs (B) and (E).
          The determination of the amount of deduction under section 170 
          for purposes of this paragraph shall be made as if the 
          limitation under section 170(e)(3)(B) applied to all STEM 
          inventory property.
              ``(3) STEM service contributions.--The term `STEM service 
          contributions' means the amount paid or incurred during the 
          taxable year for STEM services provided in the United States or 
          in the defense dependents' education system for the exclusive 
          benefit of students at an elementary or secondary school 
          described in section 170(b)(1)(A)(ii) but only if--
                      ``(A) the taxpayer is engaged in the trade or 
                  business of providing such services on a commercial 
                  basis, and
                      ``(B) no charge is imposed for providing such 
                  services.
              ``(4) STEM inventory property.--The term `STEM inventory 
          property' means, with respect to any contribution to a school, 
          any property--
                      ``(A) which is described in paragraph (1) or (2) of 
                  section 1221(a) with respect to the donor, and
                      ``(B) which is determined by the school to be 
                  needed by the school in providing education in grades 
                  K-12 in the areas of science, technology, engineering, 
                  or mathematics.
              ``(5) STEM services.--The term `STEM services' means, with 
          respect to any contribution to a school, any service determined 
          by the school to be needed by the school in providing education 
          in grades K-12 in the areas of science, technology, 
          engineering, or mathematics, including teaching courses of 
          instruction at such school in any such area.
              ``(6) Defense dependents' education system.--For purposes 
          of this subsection, the term `defense dependents' education 
          system' means the program established and operated under the 
          Defense Dependents' Education Act of 1978 (20 U.S.C. 921 et 
          seq.).
      ``(d) STEM Teacher Externship Expenses.--For purposes of this 
  section--
              ``(1) In general.--The term `STEM teacher externship 
          expenses' means any amount paid or incurred to carry out a STEM 
          externship program of the taxpayer but only to the extent that 
          such amount is attributable to the participation in such 
          program of any eligible STEM teacher, including amounts paid to 
          such a teacher as a stipend while participating in such 
          program.
              ``(2) STEM externship program.--The term `STEM externship 
          program' means any program--
                      ``(A) established by a taxpayer engaged in a trade 
                  or business within an area of science, technology, 
                  engineering, or mathematics, and
                      ``(B) under which eligible STEM teachers receive 
                  training to enhance their teaching skills in the areas 
                  of science, technology, engineering, or mathematics or 
                  otherwise improve their knowledge in such areas.
              ``(3) Eligible stem teacher.--The term `eligible STEM 
          teacher' means any individual--
                      ``(A) who is a teacher in grades K-12 at an 
                  educational organization described in section 
                  170(b)(1)(A)(ii) which is located in the United States 
                  or which is located on a United States military base 
                  outside the United States, and
                      ``(B) whose teaching responsibilities at such 
                  school include, or are likely to include, any course in 
                  the areas of science, technology, engineering, or 
                  mathematics.
      ``(e) STEM Teacher Training Expenses.--The term `STEM teacher 
  training expenses' means any amount paid or incurred by a taxpayer 
  engaged in a trade or business within an area of science, technology, 
  engineering, or mathematics which is attributable to the participation 
  of any eligible STEM teacher in a regular training program provided to 
  employees of the taxpayer which is determined by such teacher's school 
  as enhancing such teacher's teaching skills in the areas of science, 
  technology, engineering, or mathematics.
      ``(f) Denial of Double Benefit.--No deduction shall be allowed 
  under this chapter for any amount allowed as a credit under this 
  section.''.
      (b) Conforming Amendments.--
              (1) Section 38(b) of such Code is amended by striking 
          ``plus'' at the end of paragraph (30), by striking the period 
          at the end of paragraph (31), and inserting ``, plus'', and by 
          adding at the end the following new paragraph:
              ``(32) the elementary and secondary science, technology, 
          engineering, and mathematics (STEM) contributions credit 
          determined under section 45O.''.
              (2) 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 the following new item:
  
  ``Sec. 45O. Contributions benefiting science, technology, engineering, 
                              and mathematics education at the elementary 
                              and secondary school level.''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to taxable years beginning after the date of the enactment of 
  this Act.
target: National Science Education Tax Incentive for Businesses Act of 2007 - Amends the Internal Revenue Code to allow a general business tax credit for contributions of property or services to elementary and secondary schools and for teacher training to promote instruction in science, technology, engineering, or mathematics (STEM contributions).
feat_title: To amend the Internal Revenue Code of 1986 to encourage businesses to improve math and science education at elementary and secondary schools.